Production of goods and services 4.1 Flashcards
What is the difference between production and productivity
Production is the process of adding value to a product to satisfy customer needs and wants.
Productivity is how a business measures its efficiency which is Quality of output/Quality of input
How do you increase productivity
Improving layout of factory so production becomes faster and more efficient
Training workers so they can be more productive
Using automation
What are the benefits of increasing productivity
Lower cost per unit
Reduce labour cost
Reduces overall costs
Why do businesses hold inventory and what happens if you have too much stock
To make sure there are enough materials to produce a product
Money wasted on storage cost
Money could have been used on something else
What is lean production
techniques used by businesses to cut down waste and increase efficiency
What is the kaizen method
continuous improvement by eliminating waste.
Regular meetings to discuss problems and solutions
Reduced waste and increased efficiency
What the just in time method
Main focus on reducing the need to hold stocks of raw material or parts that are needed
Raw materials are delivered just in time
What is cell production
The production line is divided into separate teams of workers
Motivation is improved due to the variety of tasks and the worker belonging to a team
What is job production and the benefits and limitations
Each product is different and made to specific instructions by the consumer
Higher price can be charged for product
Product meets requirements of the customer
Costs of production are high because skilled labour is used
Product takes a long time to produce
What is batch production and the benefits and limitations
Similar products that are made in batches
Gives more variety of jobs to workers
Production can be easily changed from one product to another
Machines have to be reset when changing from one batch to another which slows down production
Warehouse space needed to store products
What is flow production and the benefits and limitations
When large amount of identical products are produced
Increased efficiency through use of machinery
Less labour is needed
Starting costs are high such as machines
If a machine breaks down the whole production line may stop
How has technology helped change production methods
Improved motivation as machines now do the boring jobs
Increased efficiency
Better quality products are produced
