unit 4 Flashcards
labour productivity
output per period / no. of employees
how is productivity measured
as the output per worker in a given time period
what is efficiency
getting more output from a given amount of inputs
being efficient just means reducing the waste of all the inputs
what does greater efficiency do
decrease unit costs and increase profits
what can increasing productivity do
improve efficiency of the business
what are the ways of increasing labour productivity
improving worker motivation
training
new technology
disadvantages of increasing labour productivity
encouraging workers to produce more by financial methods of motivation for increased output may compromise on quality or more waste produced
difficulties increasing efficiency and labour
productivity
increasing productivity could lead to more waste of raw matierals which could reduce value added and will have a negative impact on the environment
lean production
efficient form of production that keeps waste of time and resources to a minimum
lean production decreases business costs
what are the lean production methods
just in time
just in case
kaizen
just in time production
aims to reduce waste of materials and products by having as little stock as possible
all raw materials come , produced, sold all just in time for customer
what is JIT based on
efficient stock control
supply of components is linked directly to the demand for components
advantages of JIT
storage costs are reduced
cash flow is improved as money isnt tied up in stock
less waste- less out of date or damaged stock
business is more flexible, can cope with changes in demand
can easily adapt its products to suit changing demand
disadvantages of JIT
no stock means customers cannot be supplied during production strikes
suppliers have to be reliable because there is not much stock of raw materials to keep production going
just in case lean production method
business maintain high levels of buffer stock to meet unexpected surges in demand or supply chain disruptions
use of JIC
Ensures customer demand is met even during delays or unforeseen issues.
Advantages of JIC Production
Can fulfill customer orders even if supply chains are disrupted.
Reduces delays in delivery, improving customer loyalty
Bulk purchasing leads to cost savings on raw materials.
Can respond quickly to sudden increases in demand.
disadvantages of JIC lean production
High Storage Costs
Unsold inventory may become outdated or perish, leading to waste.
Money invested in stock could be used for other business operations.
Large inventory levels may encourage inefficiency and overproduction.
Excess stock requires more storage space, which may not always be available.
What is inventory?
Inventory refers to the stock a business holds in the form of raw materials, components, work in progress, and finished goods.
What are the three areas of the supply chain?
The supply chain includes the: supply of materials to the manufacturer,
the manufacturing process,
and the distribution of finished goods to the consumer.
What does flexibility in a business mean?
Flexibility refers to a business’s ability to meet customer requirements in terms of numbers ordered or variations in specification.
What is mass customisation?
Mass customisation is the production of customised goods or services to meet customers’ diverse and changing needs.
What is speed of response in business?
Speed of response is how quickly a business fulfills an order.
What does dependability mean in a business context?
Dependability refers to the punctuality and reliability of fulfilling an order on time.
