unit 4

Question 1

labour productivity

Answer 1

output per period / no. of employees

Question 2

how is productivity measured

Answer 2

as the output per worker in a given time period

Question 3

what is efficiency

Answer 3

getting more output from a given amount of inputs
being efficient just means reducing the waste of all the inputs

Question 4

what does greater efficiency do

Answer 4

decrease unit costs and increase profits

Question 5

what can increasing productivity do

Answer 5

improve efficiency of the business

Question 6

what are the ways of increasing labour productivity

Answer 6

improving worker motivation
training
new technology

Question 7

disadvantages of increasing labour productivity

Answer 7

encouraging workers to produce more by financial methods of motivation for increased output may compromise on quality or more waste produced

Question 8

difficulties increasing efficiency and labour
productivity

Answer 8

increasing productivity could lead to more waste of raw matierals which could reduce value added and will have a negative impact on the environment

Question 9

lean production

Answer 9

efficient form of production that keeps waste of time and resources to a minimum
lean production decreases business costs

Question 10

what are the lean production methods

Answer 10

just in time
just in case
kaizen

Question 11

just in time production

Answer 11

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

Question 12

what is JIT based on

Answer 12

efficient stock control
supply of components is linked directly to the demand for components

Question 13

advantages of JIT

Answer 13

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less waste- less out of date or damaged stock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

Question 14

disadvantages of JIT

Answer 14

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

Question 15

just in case lean production method

Answer 15

business maintain high levels of buffer stock to meet unexpected surges in demand or supply chain disruptions

Question 16

use of JIC

Answer 16

Ensures customer demand is met even during delays or unforeseen issues.

Question 17

Advantages of JIC Production

Answer 17

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.

Question 18

disadvantages of JIC lean production

Answer 18

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.