production of goods and services Flashcards
1
Q
productivity
A
- a measure of operational efficiency
- output/input uses to create it
2
Q
labour productivity
A
output per time period/number of employees
3
Q
increasing productivity
A
- improve factory/office organisation to save time
- improve labor skills by training
- introduce more efficient machinery and automation
- motivate employees more effectively
- improve quality of the product
- improve inventory control
4
Q
advantages of increasing productivity
A
- amount of output produced per employee increases so can give them higher wages
- costs of producing each product fall
- lower prices which can help keep business competitive
- increased output so more to sell
5
Q
why businesses hold inventory
A
- meet orders straightaway
- economies of scale because bulk buying
- production does not stop
- increase scale of production
- avoid supply problems
6
Q
wastes in production process
A
- overproduction
- waiting
- unnecessary transport
- excess inventories
- defects
- overprocessing
- movement of goods
7
Q
benefits of lean production
A
- less storage of raw materials or components
- quicker production of goods or services
- no need to repair defects or provide a replacement service for a dissatisfied customer
- better use of equipment
- cutting out some processes, which speeds up production
- less money tied up in inventories
- improved health and safety, leading to less time off work due to injury
8
Q
advantages of kaizen
A
- increased productivity
- reduced amount of space needed for the production process
- work-in-progress is reduced
- improved layout of the factory floor may allow some jobs to be combined, thereby freeing up employees to carry out some other job in the factory
9
Q
advantages of just in time
A
- zero or low inventories saving storage costs
- warehouse space is not needed saving costs
- finished product is sold more quickly and money comes back to the business faster increasing cash flow
10
Q
disadvantages of just in time
A
- reliable suppliers and efficient ordering system as risky
11
Q
advantages of cell production
A
- motivates employees so less likely to strike
- makes them work harder increasing efficiency
12
Q
advantages of job production
A
- one off products and personal services
- flexible designs meet customer needs
- varied work which increases motivation
- personalised so higher price can be charged
13
Q
disadvantages of job production
A
- skilled labour is used so high costs
- special materials mean higher costs
- production is time taking
14
Q
advantages of batch production
A
- flexible way of working
- allows variety to workers jobs
- production may not be fully affected if machinery breaks down
15
Q
disadvantages of batch production
A
- semi finished products need moving about
- machines have to be reset which causes delays
- warehouse space increasing costs
16
Q
advantages of flow production
A
- high output
- cost of each item is low so low prices
- economies of scale
- little training as unskilled tasks
- can operate 24/7
- no need to move goods around which saves time
17
Q
disadvantages of flow production
A
- boring so lack of motivation
- high capital costs of setting up machinery
- significant storage requirements increasing costs
- if one machine breaks down entire production system is halted
18
Q
factors affecting method of production
A
- nature of product
- nature of demand
- size of market
- size of the business
19
Q
advantages of technology
A
- higher productivity so lower costs
- higher quality
- easy to design new products
- high skills which increases motivation
- routine jobs done by machine so job satisfaction of workers increases
20
Q
disadvantages of technology
A
- increase in unemployment and redundancy
- expensive investment increases risks
- needs to be replaced quickly
- employees may be unhappy with changes in technology
