unit 4

Question 1

what is productivity?

Answer 1

The output measured against the inputs to create it, used to measure efficiency

Question 2

how is productivity measured?

Answer 2

output/quantity of input

Question 3

How is labour productivity measured?

Answer 3

Output(over a given period of time)/number of employees

Question 4

What are 5 ways to increase productivity and efficiency?

Answer 4

• motivate employees more effectively
• replace employees with machines.
  -improve training to increase
• improve quality of the product and inventory control to reduce waste.
  -use more automation

Question 5

What are the benefits of increasing efficiency/productivity?

Answer 5

• reduced inputs needed for the same output level.
• lower costs per unit
  -fewer workers may be needed, possibly leading to lower wage costs
• higher wages might now be paid to workers, which increases motivation

Question 6

buffer inventory

Answer 6

inventory held to deal with uncertainty in customer demand and deliveries of supplies.

Question 7

lean production

Answer 7

Techniques used by a business to cut down on waste to increase efficiency.

Question 8

overproduction

Answer 8

producing goods before they have been ordered by customers. causes high storage costs and possible damage to goods while in storage.

Question 9

waiting

Answer 9

when goods are not moving or being processed in any way.

Question 10

transportation

Answer 10

moving goods around unnecessarily causes waste and is not adding value to the product.

Question 11

unnecessary inventory

Answer 11

If there is too much inventory then this takes up space, could get in the way of production and costs money.

Question 12

motion

Answer 12

any actions, including bending or stretching movements of the body of the employee waste time and could cause health issues.

Question 13

over processing

Answer 13

if complex machinery is being used to perform simple tasks this is wasteful.

Question 14

defects

Answer 14

any faults require the goods being fixed and time can be wasted inspecting the products.

Question 15

benefits of lean production

Answer 15

• less storage of raw materials
• quicker production of goods or services
• better use of equipment
• cutting out some processes, speeds up production
• less money wasted on inventories

Question 17

what are the methods of lean production?

Answer 17

-kaizen
- just in time
- cell production

Question 18

kaizen

Answer 18

• Japenese term, means continuous improvement through the elimination of waste.
• small groups of workers meet regularly to discuss problems and possible solutions.
  -e.g getting rid of large amounts of inventory or reducing amount of time taken for workers to walk between jobs.

Question 19

Advantages of kaizen

Answer 19

• increased productivity
• reduced amount of spaces needed for the production process
  -improved layout of factory floor

Question 20

What is just-in-time?

Answer 20

A production method that involves reducing or virtually eliminating the need to hold inventories of raw materials or unsold inventories of the finished product.

Question 21

advantages of just in time

Answer 21

reduces costs of holding inventory
-warehouse space not needed
- finished product is sold quickly, helping cash flow

Question 22

what is cell production?

Answer 22

When production line is divided into separate self- contained units.

Question 23

Advantages of cell production

Answer 23

-improves morale of the employees, makes them work harder so more efficient.
-employees feel more valued and less likely to strike or cause distruption.

Question 24

what is job production?

Answer 24

where products are made specifically to order.
e.g A customer orders a drink and the barista will make it.

Question 25

Batch production

Answer 25

where a quantity of a product is produced simultaneously and not one at a time.

Question 26

flow production( mass production)

Answer 26

where large quantities of a product are produced in a continuous process.

Question 27

advantages of job production

Answer 27

-most suitable for personal services
-product meets exact requirements of customer
- the workers have more varied jobs, increases employee motivation.

Question 28

Disadvantages of job production

Answer 28

• skilled labour is used and this raises costs.
• production often takes a long time.
• products are specially made to order and so any errors can be expensive to correct.

Question 29

advantages of batch production

Answer 29

• still gives some variety to workers jobs
• flexible way of working, production can easily be changed from one product to another.
• production may not be affected to a great extent if machineary breaks down.

Question 30

disadvantages of batch production

Answer 30

-can be expensive as semi finished products will need moving to the next production stage.
- warehouse space will be needed for inventories of raw materials and finished batches of goods. This is expensive.

Question 31

advantages of flow production

Answer 31

-high output of standardized product
- cost of making each item are low, prices lower.
-capital-intensive methods allow workers to specialize in specific and repeated tasks, employees need little training.

Question 32

disadvantages do flow production

Answer 32

• very boring system for workers, little job satisfaction, lack of employee motivation.
• significant storage requirements.
• capital costs of setting up production line are very high.
• if one machine breaks down the whole production line will be stopped.

Question 33

factors that affect which production method to use

Answer 33

-nature of the product
if individual service required then job else flow.
- size of market
if demand is higher and more products can be sold then batch, if niche markets then flow
- the nature of demand
if large demand then flow else batch.
-the size of business
small then batch or job production.

Question 34

advantages of new tech

Answer 34

• productivity is greater
• greater job satisfaction is boring jobs done by machines
• better quality products produced
  -quicker communication and reduced paperwork with computers

Question 35

disadvantages of new technology

Answer 35

• unemployment could rise
• expensive to invest in new tech
• new tech is changing all the time and need to be replaced bc of competition
• employees unhappy with changes

Question 36

fixed cost

Answer 36

costs which do not change in the short run depending on the items sold or produced.
paid whether business making money or not.
i

Question 37

variable costs

Answer 37

change directly with the number of items sold or produced.

Question 38

break even point

Answer 38

level of sales at which total costs= total revenue