2.4

Question 1

Definition of Production

Answer 1

The transformation of resources into finished goods

Question 2

Definition of Job Production

Answer 2

Products are made one at a time

Question 3

Definition of Flow Production

Answer 3

Continuous manufacturing of standardised products

Question 4

Definition of Batch Production

Answer 4

Groups of products are produced as a batch

Question 5

Definition of Cell Production

Answer 5

Where teams are formed to be responsible for a particular part of the production process

Question 6

3 Advantages of Job Production

Answer 6

-High Quality
-Motivated workers
-Customisation

Question 7

2 Disadvantages of Job Production

Answer 7

-Production is slow
-High labour costs

Question 8

3 Advantages of Flow Production

Answer 8

-Low unit cost = economies of scale
-Rapid production
-Usually automated

Question 9

2 Disadvantages of Flow Production

Answer 9

-Hard to customise
-Expensive for capital equipment

Question 10

2 Advantages of Batch Production

Answer 10

-Reduced unit costs
-Can be more efficient time wise

Question 11

2 Disadvantages of Batch Production

Answer 11

-Needs coordination
-High stock of raw materials

Question 12

3 Advantages of Cell Production

Answer 12

-Greater motivation
-Workers become multi skilled
-More efficient

Question 13

2 Disadvantages of Cell Production

Answer 13

-High recruitment and training
-Team efficiency needed

Question 14

Definition of Productivity

Answer 14

The output per input

Question 15

Definition of Labour Productivity

Answer 15

The measure of output per worker in a specified time

Question 16

Formula of Labour Productivity

Answer 16

Output / Number of workers

Question 17

Definition of Capital Productivity

Answer 17

The measure of output of capital employed in a specified time

Question 18

Formula of Capital Productivity

Answer 18

Output / Number of Machines

Question 19

4 Factors affecting Productivity

Answer 19

-Employee Motivation
-Skills, Education and Training Staff
-Business Organisation and Practises
-Investment in capital equipment

Question 20

Definition of Competitiveness

Answer 20

The ability of a business to maintain or grow its sales and market share given the presence and actions of rivals

Question 21

Definition of Efficiency

Answer 21

The ability of a business to use its production resources as cost-effectively as possible

Question 22

Formula for Average Cost Per Unit

Answer 22

Total Costs / No. Units

Question 23

6 Factors Influencing Efficiency

Answer 23

-Standardisation of production
-Relocation or downsizing
-Investment in capital equipment
-Organisational restructuring
-Outsourcing
-Lean production techniques

Question 24

Definition of Labour-Intensive Production

Answer 24

Predominantly uses physical labour in the production of goods

Question 25

Definition of Capital-Intensive Production

Answer 25

Predominantly uses machinery in the production of goods

Question 26

3 Advantages of Capital Intensive

Answer 26

-Low cost production -Machinery are consistent -Machinery are precise

Question 27

3 Disadvantages of Capital Intensive

Answer 27

-High set up and maintenance costs -Breakdowns cause severe delay -May not provide flexibility

Question 28

3 Advantages of Labour Intensive

Answer 28

-Low cost production -Provides opportunities to be creative -Workers can be flexible

Question 29

3 Disadvantages of Labour Intensive

Answer 29

-Workers may be unreliable -Incentives may need to be given -Training costs are significant

Question 30

Definition of Capacity Utilisation

Answer 30

The measure of the level that a businesses assets are being used to produce output

Question 31

Formula of Capacity Utilisation

Answer 31

(Current Output / Maximum Output) * 100

Question 32

Definition of Under-utilisation

Answer 32

A business will not be making the most of its resources and have increased unit costs

Question 33

2 Benefits of Under-utilisation

Answer 33

-Respond to sudden increase in demand -Engage in maintenance tasks

Question 34

2 Disadvantages of Under-utilisation

Answer 34

-High unit costs -Possible fears of job security

Question 35

Definition of Over-utilisation

Answer 35

A business its operating at a high level of output with the resources it has

Question 36

2 Disadvantages of Over-utilisation

Answer 36

-No backup if machinery breaks -Lead to high labour turnover

Question 37

2 Advantages of Over-utilisation

Answer 37

-Increase competitiveness -Minimise average total costs

Question 38

5 Ways of Improving Capacity Utilisation

Answer 38

-Increase sales -Increase usage -Outsourcing -Reduce capacity -Redeployment

Question 39

Definition of Buffer Stocks

Answer 39

The quantity of goods kept in case of stock shortages

Question 40

3 Advantages of Buffer Stocks

Answer 40

-Stability in supply -Price stability -Competitive advantage

Question 41

3 Disadvantages of Buffer Stocks

Answer 41

-Cost -Risk of obsolescence -Opportunity cost

Question 42

2 Problems with holding too much stock

Answer 42

-Opportunity Cost -Storage Cost

Question 43

2 Problems with holding too little stock

Answer 43

-Risk of stockout -Unexpected demand cannot be met

Question 44

Definition of JIT stock management

Answer 44

The process in which raw materials are not held onsite but ordered as required and delivered just in time

Question 45

3 Advantages of JIT

Answer 45

-Improved cash flow -Low stockholding costs -Teamwork encouraged

Question 46

3 Disadvantages of JIT

Answer 46

-Unreliable supplies -Admin costs -Can't respond to unexpected demand

Question 47

3 Ways to Minimise Waste

Answer 47

-Storage (protected and safe) -Planning (stock control, training) -Sales Tactics (pricing, obsolete stock)

Question 48

5 reasons why Lean Production is important

Answer 48

-Less time -Fewer materials -Less labour -Space required reduced -Small number of trusted suppliers

Question 49

2 ways Lean Production impacts a competitive advantage

Answer 49

-Lower unit costs -Better quality

Question 50

Definition of Quality Control

Answer 50

Inspecting the quality of output at the end of production

Question 51

Definition of Quality Assurance

Answer 51

Inspecting the quality of production throughout the process

Question 52

Definition of Quality Circles

Answer 52

Groups of workers meet regularly to solve quality problems identified in the production process

Question 53

Definition of Total Quality Management

Answer 53

Organisation of the business with quality at its core and with every worker responsible for quality

Question 54

2 Advantages and Disadvantages of QCo

Answer 54

+Specialists are hired +Inexpensive -Significant wastage -No look for cause

Question 55

2 Advantages and Disadvantages of QA

Answer 55

+Identified early +Cause is identified -Training and skilled workforce -Time

Question 56

2 Advantages and Disadvantages of QCi

Answer 56

+Motivation +Relevant and focused solutions -Must be trusted -Meetings need to be organised regularly

Question 57

2 Advantages and Disadvantages of TQM

Answer 57

+Improves Efficiency +Culture of constant improvement -Workers must be committed -Careful control and monitoring

Question 58

Definition of Kaizen

Answer 58

The continuous steps to improve productivity through eliminating waste

Question 59

6 Possible elements of Kaizen

Answer 59

-TQM -JIT -Team working and Quality Circles -Zero Defects -Automation -Cooperation between workers and management

Question 60

3 Ways Quality Management can gain a Competitive Advantage

Answer 60

-Unit costs lower -Create USP -Build Reputation