Unit 4: Chapter 18

Question 1

What is production efficiency?

Answer 1

the higher the productivity of a business is, the more efficient it is. they use low inputs and produce high outputs, which reduces the cost and highers the revenue made

Question 2

What is the formula for productivity?

Answer 2

output/quantity of input

Question 3

What is labour productivity?

Answer 3

measures how much output each person contributes in a business

Question 4

What is the formula for labour productivity?

Answer 4

output/number of employees

Question 5

What is productivity?

Answer 5

the output measured against the inputs used to create it

Question 6

How can you increase efficiency?

Answer 6

training, improve working environment, new production methods (tech)

Question 7

What are the effects of too much inventory?

Answer 7

too much inventory increases waste which decreases productivity.

products can perish before sold, uses extra storage space, and extra cash used to purchase

Question 8

What is the importance of inventory?

Answer 8

needed to serve customers
needed to manufacture products
current assets to the business

Question 9

What is lean production?

Answer 9

a method of production used to improve efficiency by eliminating waste.

Question 10

What is a buffer inventory?

Answer 10

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

Question 11

What are the features of lean production?

Answer 11

make continuous improvements in production process, speed up steps, reduce waste, improve work quality

Question 12

What is JIT?

Answer 12

Just In Time
system used to make sure you get the perfect amount of materials needed just in time for use

Question 13

What is cell production?

Answer 13

production line divided into separate self contained cells/units. each making a part of the product instead of mass production.

Question 14

What is Kaizen?

Answer 14

Japanese term meaning ‘continuous improvement’ through elimination of waste

Question 15

What are the methods of production?

Answer 15

job, batch, and flow

Question 16

What is job production?

Answer 16

where a single product is made at a time

Question 17

What is batch production?

Answer 17

when a quantity of one product is made, then a quantity of another item will be produced.

Question 18

What is flow production?

Answer 18

where large quantities of products are produced in a continuous process (mass production)

Question 19

What is capital intensive?

Answer 19

very expensive startup costs (investing in a machine, vehicle etc.)

Question 20

What are the advantages of job production?

Answer 20

suitable for personalised services/products, product meets exact requirements of customer

Question 21

What are the disadvantages of job production?

Answer 21

skilled labour needed, expensive, slow production

Question 22

What are the advantages of batch production?

Answer 22

flexible way of working, gives variety to workers jobs, allows more consumer choice

Question 23

What are the disadvantages of batch production?

Answer 23

expensive, machines have t be reset between batches, warehouse spaces needed to hold raw materials

Question 24

What are the advantages of flow production?

Answer 24

high output of standardised product, costs kept low so price can stay low

Question 25

What are the disadvantages of flow production?

Answer 25

very boring system, significant storage requirements, capital intensive

Question 26

How has technology changed production methods?

Answer 26

allows mechanisation and automation of production methods, keeps business ahead of competition

Question 27

What is automation?

Answer 27

equipment used in factory controlled by a computer to carry out mechanical processes production line consists of mainly machines and only few people needed to ensure smooth runs

Question 28

What is mechanisation?

Answer 28

where the production process is done by machines but operated by people

Question 29

What are the advantages of mechanisation?

Answer 29

robots can do unpleasant/dangerous tasks for humans quick, accurate, work 24 hours

Question 30

What is CAD?

Answer 30

computer integrated design computer software that draws items designed ore quicky and allows them to be rotated to see from all sides

Question 31

What is CAM?

Answer 31

computer aided manufacture where computers monitor production process + control machines and robots

Question 32

What is CIM?

Answer 32

computer integrated manufacturing total integration of CAD and CAM the computers that design products linked to computers that aid manufacturing

Question 33

What are the electronic payment methods?

Answer 33

EPOS, EFTPOS, contactless payment

Question 34

What are the advantages of electronic payment methods?

Answer 34

makes sales quicker and improves productivity in shops

Question 35

What is EPOS?

Answer 35

electronic point of scale payment method used at checkouts where each item has a barcode that displays the price and description of the product on the checkout monitor and receipt. the inventory records whether the item is sold and when stock gets low it automatically reorders it.

Question 36

What is EFTPOS?

Answer 36

electronic funds transfer at point of scale electronic cash register connected to retailers main computer + bank, so when customer pays directly debits to retailers bank account after confirmation of purchase.

Question 37

What is contactless payment?

Answer 37

fast and easy way to secure purchase for small amounts. large amounts passcode needed to identify legit transaction debit cards, credit cards, watches etc. antenna touched against contactless terminal to transmit information

Question 38

What are the advantages of new technology?

Answer 38

productivity increases as efficient methods also reduce cost greater job satisfaction better quality products as result of increased accuracy

Question 39

What are the disadvantages of new technology?

Answer 39

unemployment can rise, capital intensive, outdates quickly

Question 40

What are the 7 types of waste?

Answer 40

overproduction, waiting, transportation, unnecessary inventory, motion, over processing, defects

Question 41

What are the benefits of lean production?

Answer 41

costs saved through: less storage, quicker production, no repair defects, better use of equipment

Question 42

What do reduced costs lead to?

Answer 42

lower prices for customers which can increase sales by coming close to competitors