Productivitya

Question 1

The operations department in a firm overlooks the production process. They must:

Answer 1

-Use the resources in a cost-effective and efficient manner
-Manage inventory effectively
-Produce the required output to meet customer demands
-Meet the quality standards expected by customers

Question 2

what’s Productivity

Answer 2

Productivity is a measure of the efficiency of inputs used in the production process over a period of time. It is the output measured against the inputs used to produce it

Question 3

what’s the formula for productivity

Answer 3

Productivity =

   Output -------------------------- Quantity of Input

Question 4

Labor productivity formula

Answer 4

Labor productivity=

Number of employees

Question 5

Ways to improve productivity

Answer 5

-Improving layout of factory so production becomes faster and more efficient
-Training workers so they can be more productive
-Using automation

Question 6

Benefits of increasing efficiency/productivity

Answer 6

» Reduced inputs needed for the same output level.
» Lower costs per unit (average cost).
» Fewer workers may be needed, possibly leading to lower wage costs.
» Higher wages might now be paid to workers, which increases motivation.

Question 7

Why do businesses hold stock?

Answer 7

Businesses keep stocks for a variety of reasons, for example, factories keep raw material inventory to make sure there are enough materials for production while a shop might hold stock to ensure that products are available to customers.

Question 8

Too much stock

Answer 8

-Money wasted on storage cost
-Depreciation cost
-Shelf life (items may reach best before date before being sold)
-Money could’ve been used on something else

Question 9

Not enough stock

Answer 9

Opportunity lost (profit could be made if product sold)

Question 10

Buffer stock (aka safety stock)

Answer 10

inventory to deal with sudden customer demands for a product or in case supplies doesn’t get delivered on time.

Question 11

Lean Production

Answer 11

Term for techniques used by businesses to cut down waste and increase efficiency

Question 12

Common wastes in businesses

Answer 12

-Overproduction – Producing too many products which then costs the business money to keep the product in storage. (and may get damaged/expires etc..)
-Waiting – Goods not being processed
-Transporting – Materials being moved around the factory inefficiently
-Over-processing – e.g. using advanced machine to do simple tasks
-Defects- production of faulty products which can’t be sold.

Question 13

Costs can be reduced by lean production

Benefits of lean production

Answer 13

» 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.

Question 14

increase productivity and efficiency. These include:

Answer 14

» Improve quality of the product and inventory control to reduce waste.
» Replace employees with machines – automation.
» Improve training to increase employee efficiency.
» Motivate employees more effectively.
» Introduce new technology.
» Use more automation.