Production Of Goods And Services

Question 1

Define production

Answer 1

The combination of inputs to produce valuable outputs
OR
The provision of goods and services to satisfy customer needs and wants

Question 2

List and explain the departments found under the Operations Department

Answer 2

Factory manager- in charge of the quality and quantity of goods and services
Purchasing manager- in charge of providing materials/equipment required for production
Research and development- in charge of the testing&designing of new production processes

Question 3

How do you calculate productivity & labour productivity

Answer 3

Productivity = output/ quantity of input
Labour’s productivity = output over a given period/ no. of employees

Question 4

How can productivity be raised?

Answer 4

Keeping inputs the same but output higher or reducing inputs but keeping outputs the same

Question 5

Ways of increasing productivity

Answer 5

1. Improve quality & reducing inventory
2. Replacing employees with machines
3. Introducing new technology
4. Training employees
5. Automation
6. Motivating employees

Question 6

Benefits of increasing productivity

Answer 6

1. Reduced inputs needed for the same output level
2. Lower production cost per unit
3. Fewer workers therefore less wage expense
4. Motivation to workers as they are paid more

Question 7

Why do businesses keep inventory?

Answer 7

To maintain productivity and quickly satisfy customer needs

Question 8

What happens when inventory is too high or too low?

Answer 8

If inventory is high, storage will be full andnotbeused, of which money could be spent elsewhere
Too low levels leads to disruption in supply of customer need

Question 9

Define lean production

Answer 9

Techniques used in a business to cut down waste

Question 10

What are the types of waste in production

Answer 10

1. Overproduction- making products before orders are made
2. Waiting- no production occurring
3. Over-processing- using machines for simple tasks
4. Transportation- the constant movement of products can lead to damage
5. Motion- employees unnecessarily moving around
6. Unnecessary inventory- too much of it fills storage and increases costs
7. Defects- faults needed to be fixed

Question 11

Benefits of lean production

Answer 11

Costs are reduced through;
-less storage occupied
-qquicker production
-no need to repair defects
-better use of equipment
-less money tied up in inventories

Question 12

Explain what happens in Kaizen (a type of lean production)

Answer 12

It means continuous improvement whereby employees detect problems in the work place and work as one to find solutions
The factory floors are basically reorganized so work flow is efficient and there’s less movement

Question 13

What are the benefits of Kaizen?

Answer 13

• fast productivity
  -work in progress is reduced
  -Improved factory layout
  -reduced amount of space for the production process

Question 14

Explain what Just-In-Time inventory control is

Answer 14

This is a method that reduces the need to hold inventories of raw materials, unfinished and finished goods

Question 15

Advantages of JIT inventory control

Answer 15

-saves costs
- reduced space
-finished products are sold quick

Question 16

What is cell production?

Answer 16

This is where production is divided into separate, self contained units called cells with each cell making an identifiable part of the finished product.

Question 17

Advantages ofcell production

Answer 17

-provides staff morale and makes them work harder
-employees feel valued and are less likely to strike

Question 18

List 3 methods of production

Answer 18

-job production
-batch production
-flow production

Question 19

What happens in job production?

Answer 19

This is whereby products are produced one at a time, specifically according to an order

Question 20

List the advantages of job production

Answer 20

• most suitable for personal services
  -the products meet customers satisfaction
• flexible way of production

Question 21

List the disadvantages of job production

Answer 21

-requires skilled labour
-production takes longer
- products are specifically made therefore if there are any errors it’s expensive
- materials are specifically ordered

Question 22

Explain what batch production is

Answer 22

Similar products are made in blocks/batches

Question 23

Advantages of batch production

Answer 23

-flexible way of working
-it gives some variety to workers
-production may not be greatly affected if machines stop working
-gives consumers more choices

Question 24

Disadvantages of batch production

Answer 24

-its expensive as semi-finished products will need to be moved to the next production stage
-machines have to be reset between beaches
-warehouse space is costly

Question 25

Define flow production

Answer 25

Thus sis when large quantities of a product are produced in continuous process

Question 26

Advantages of flow production

Answer 26

-high output
-automated lines work for 24 hours
-no need to move products from one part of the factory to another
-average costs are low
-reduced labor costs

Question 27

Disadvantages of flow production

Answer 27

-lots of storage is required
-its BORING
-if machine breaks down there’s no production
-setting up costs are high

Question 28

List & explain the factors affecting the method of production

Answer 28

a) The nature of the product
Specifically made products will need job production while if mass products are needed flow production may be used
b) The size of the market
If the demand is higher and more products can be sold but not in very large quantities, batch is suited while if it’s it’s niche market either job or batch is suitable. International markets may use flow production
c) The nature of demand
If the product is highly demanded like soap then flow production, if it’s less in demand like furniture then batch or job production
d) The size of the business
If the business is small (job/batch) if the business is large (flow)

Question 29

How does technology change production methods?

Answer 29

1. Automation- equipment used I controlled by computers to carry out mechanical processes, but only a few people are required to ensure everything goes accordingly
2. Mechanization- machines are operated by humans (printers)
3. Robots- programmed to do dangerous/difficult jobs Humans can’t do. Are quick and worked hrs
4. EPOS( Electric Point Of Scale)- used at checkouts where barcodes are scanned and price and details are outputted on the monitor and a receipt is printed.
5. Contact less payment- is fast, easy and secure way to pay for purchases of a small amount

Question 30

Advantages of introducing new technology

Answer 30

-productivity
- better quality products
- quicker communication
- new products available
- job satisfaction amongst employees as work won’t be boring no more
- workers are trained and learn new skills

Question 31

Disadvantages of new technology

Answer 31

• unemployment
• expensive to invest in
  -employees may feel unhappy with changes
• updates/upgrades needed which may he costly