Production of goods and services

Question 1

Define productivity

Answer 1

output measured against the inputs used to create it

productivity is a measure of efficiency

Question 2

formula for productivity

Answer 2

output/quantity of input

Question 3

labour productivity formula

Answer 3

output in a given time/no. of employees

Question 4

ways of increasing efficiency/productivity

Answer 4

• improve employee motivation
• use more automation
• replace employees with machinery/automation
• introduce new technology
• improve training to increase employee efficiency
• improve quality of product and inventory control to reduce waste

Question 5

advantages of increasing productivity

Answer 5

• reduced inputs needed for the same level of output
• lower cost per unit (average cost)
• fewer workers needed leading to lower wage costs
• higher wages can be paid to workers, which increases motivation

Question 6

Define lean production

Answer 6

it is a term for those techniques used by businesses to cut down on waste and therefore increase efficiency

Question 7

list 3 types of lean production

Answer 7

kaizen- workers come together to come up with solutions to problems faced during production
JIT- when deliveries/raw materials arrive just in time to be used or when products are made just in time to be consumes
cell production- workers are station in a place to make different parts of the final product

Question 8

list 7 types of waste

Answer 8

defects
overproduction
motion
transportation
over processing
unnecessary inventory
waiting

Question 9

advanatges of lean production

Answer 9

• less storage of raw materials
• better use of equipment
• less money tied up in inventories
• quicker production of goods and services