Theme 2 Topic 1 - Production, Productivity and Efficiency

Question 1

Define Production

Answer 1

Creating goods and services
OR
The total amount made by a business made in a given time

Question 2

Define Job Production

Answer 2

Items are made individually and each item is finished before the next is started e.g. designer dresses

Question 3

Define Batch Production

Answer 3

Groups of items are made together. Each batch is finished before the next is started e.g. bread

Question 4

Define Flow Production

Answer 4

Identical, standardised items are produced on an assembly line e.g. cars

Question 5

Define Cell Production

Answer 5

Each cell or production unit is responsible for the production of a complete item

Question 6

What are two advantages of job production?

Answer 6

Products are of high quality as they are handmade (USP), Allows some variety in production

Question 7

What are two disadvantages of job production?

Answer 7

Very time consuming and difficult to speed up production, Skilled labour is expensive

Question 8

What are two advantages of batch production?

Answer 8

Fewer skilled workers are needed but employees become good at their job as they are specialised, Allows some variety in production

Question 9

What are two disadvantages of batch production?

Answer 9

Breakdown or reset of machinery can cause major problems, Work can be repetitive resulting in a demotivated workforce

Question 10

What are two advantages of flow production?

Answer 10

Able to operate 24 hours a day resulting in little lost production time, Can bulk buy raw materials to make larger quantities

Question 11

What are two disadvantages of flow production?

Answer 11

Huge cost of machinery and storing stock, Production is very inflexible - can’t change what is produced

Question 12

Efficiency can be improved by…

Answer 12

Making full use of resources, Improving labour productivity, Investing in new technology

Question 13

Define Productivity

Answer 13

Measures how much each employee makes over a period of time (Total Output/Number of Workers)

Question 14

Staff productivity depends on…

Answer 14

Skills, Quality of machines available, Effective management

Question 15

Productivity can be improved through…

Answer 15

Training, Investment in equipment, Better management of staff by improving motivation

Question 16

Define Efficiency

Answer 16

Making the best possible use of resources. Efficient firms maximise outputs from given inputs.

Question 17

Define Labour Intensive Production

Answer 17

When most of the production is done by the workforce

Question 18

Define Capital Intensive Production

Answer 18

When most of the production is done by machinery

Question 19

What are two advantages of labour intensive production?

Answer 19

Able to create a wide range of products, Easier to adapt to changes in demand

Question 20

What are three characteristics of labour intensive production?

Answer 20

Labour costs form a high proportion of total costs, Low start-up costs, Flexible production if workers are skilled and adaptable

Question 21

What are three characteristics of capital intensive production?

Answer 21

A large % of total costs are due to operating machinery, High start-up costs, Can be inflexible as machines can only make standardised products

Question 22

What are two disadvantages of labour intensive production?

Answer 22

Production could be slow, Need high skilled workers who are often paid more and need a lot of training

Question 23

What are two advantages of capital intensive production?

Answer 23

Able to produce many identical products of high quality, Machines can work 24 hours and employees operating them are low skilled

Question 24

What are two disadvantages of capital intensive production?

Answer 24

Machines need to be well maintained to avoid breakdown, Work is repetitive so workers could get unmotivated