Production, Productivity and efficiency Flashcards

1
Q

What is job production?

A

involves making one off items to suit each customers individual requirments

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2
Q

benefits of job production?

A
  • can charge higher price

- work is more interesting for staff

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3
Q

Drawbacks of job production?

A
  • cost per unit is very high, low levels of production

- finding staff with enough skill is hard, pay will be high

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4
Q

What is batch production?

A

makes a group of products to one specification at a time, allowing some variation in products, yet some specialisation

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5
Q

benefits of batch production?

A
  • allows variation in product made

- faster then job production as making a batch speeds up production

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6
Q

Drawbacks of batch production?

A
  • more costly to set up then job production due to machinery
  • cost per unit will be higher then flow as machinery will need to be adjusted
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7
Q

What is flow production?

A

continuous production of a single standardised product

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8
Q

benefits of flow production?

A
  • unit labour costs are extreamly low

- huge volumes allow huge demand in mass markets to be met

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9
Q

Drawbacks of flow production?

A
  • high initial costs of installing machinery

- products need to be identical

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10
Q

What is cell production?

A

involves organising workers into small groups or cells that can produce a range of differant products more quickly then job production

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11
Q

Benefits of cell productio?

A
  • group working allows ideas to be shared for improvements

- small, highly skilled cell can adjust products to suit customers needs

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12
Q

Drawbacks of cell production?

A
  • costs still high as heavily relies on people

- production volume wont be as high as flow production

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13
Q

What is productivity?

A

measure of efficiency of the production process. output per worker per time period

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14
Q

productivity equation?

A

total output / number of workers

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15
Q

What are the key factors influencing productivity?

A
  • quality and age of machinery
  • skills and experience of workers
  • level of employee motivation
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16
Q

How do productivity and competitiveness link?

A
  • higher levels of productivity lead to lower unit costs, can sell for lower price, more competative
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17
Q

What is effeciency?

A

measure the extent to which the resources used in a process generate output without wastage

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18
Q

What factors influence production and efficiency?

A
  • quality and age of machinery
  • skills and experiance of workers
  • level of employee motivation
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19
Q

How does quality and age of machinery effect productivity?

A
  • new machiners works faster, breaks down less
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20
Q

How does quality and age of machinery effect efficiency?

A

fewer breakdowns mean fewer faults and newer machinery may produce with less variation

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21
Q

How do skills and experiance of workers effect productivity and efficiency?

A

productivity - more skilled can produce quicker, more experiance brings knowledge of how to complete tasks quicker

efficiency - skilled staff make fewer mistakes, experianced staff can spot problems

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22
Q

How can level of employee motivation effect productivity and efficiency?

A

productivity - motivated staff more focused, quicker

efficiency - more motivated, more care and less errors

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23
Q

What is labour intensive production?

A

means that a production process relies heavily on human input with little use of automation

24
Q

What is capital intensive production?

A

uses high levels of automation, reducing the role of humans as much as possible, replacing them with machines

25
What are the key issues with labour intensive production?
- labour costs will be very high | - managaing labour costs will be critical, may force firm to move abroad
26
Key issues with capital intensive production?
- initial costs will be very high, with the need to invest specialist machinery - low running costs
27
What is capacity?
term used to describe the maximum possible output of a business
28
What is capacity utilisation?
the proportion of maximum capacity being used by the business
29
Capacity utilisation formula?
current output / maximum possible output. x100
30
What can under-utilisation of capacity do?
- lead to fears of job security, demotivating - cause poor morale among managers - create poor reputation for the business
31
What are the problems with over utilisation?
- firm may not be able to accept new orders, turning away new customers - little or no time to cary out maintenance on machines
32
What are the ways of improving capacity utilisation?
- increase current output (through marketing) | - reduce maximum capacity (selling off assets or laying off staff)
33
What is stock or inventory?
is the materials, partially made products and finished goods owned by a business that have not been sold
34
What are buffer stocks used for?
a minimum level of stock or raw materials used in production and finished goods at all times
35
What are the reasons for keeping buffer stocks of raw materials ?
- if deliveries are delayed, buffer stock allows production to continue - if a batch of supplies is faulty the buffer stock can be used to continue production
36
Reasons for keeping buffer stock of finished goods?
- helps to ensure businesses can always supply customers | - allows firm to accept rush orders
37
problems with too much stock?
- opportunity cost: ties up capital and prevents money being spent in other ways - Cash flow problems: cash has been spent on the stock but the stock has not yet turned into cash - increased storage costs: takes up space - increased financing costs: if stock purchased with borrowing money, interest will need to be repaid - increased wastage: some stock may go off and wasted
38
Problems with too little stock?
- lost customers : if supply doesn't meet demand, customers will be lost - delays in production: if no materials standing then machinery cant run - Loss of reputation: if word gets around that business doesnt have enough stock then loss of customers
39
What is just in time stock management"
with no buffer stock, relies entirely on frequent small deliveries of materials from suppliers being delivered without delay and without any quality problems
40
Key points about JIT production?
- suppliers must be willing to deliver frequently | - deliveries must be absolutely reliable
41
How does JIT help with waste minimisation?
- less stock held, less likely to be waste - cash not tied up in stock - removing buffer stocks helps to highlight problems in production process
42
What is lean production?
a collective term for a range of japanese techniques designed to eliminate waste from business processes
43
How can lean production improve how businesses are run?
- more input from staff - a focus on quality - fewer wasted resources - focus on reducing wasted time
44
What are the three main methods of managing quality?
- quality control - quality assurance - total quality management
45
Explain quality control>
involves checking output to find any faults in a production system
46
What is quality assurance?
focuses on producing methods of preventing quality problems arising. checklists or procedures that are part of company policy
47
What is total quality management?
members of staff having the mindset of getting things right the first time
48
Pros of TQM?
- should become deeply rooted into company culture | - once all staff think about quality it should show through design and manufacture
49
cons of TQM?
- staff sceptical of management initiatives | - to get TQM into business may be expensive, requires training
50
pros of QC?
- can gurantee no defective item leaves factory | - requires little staff training
51
cons of QC?
- leaving quality for the inspectors to sort out may mean poor quality is built into product - QC cannot be trusted if based on sampling
52
QA advantages?
- makes sure quality is tested at every stage | - some customers like the reasurance of keeping records
53
QA disadvantages?
- does not promise a high quality product | - may encourage complacency, suggests quality is sorted
54
Explain qaulity circles?
a group of staff who meet regularly to find quality improvements
55
What does quality management lead to?
- allows a premium price to be charged - helps gain distribution, retailers know they wont need to return - it creates brand loyalty and repeat purchases - can help build a brand reputation that spreads to other products
56
Explain continuous improvement (kaizen)?
- encourages staff to make a stream of small ideas on how to do things better - small but frequent changes - help to improve productivity