Production, productivity and efficiency

Question 1

Methods of production

Answer 1

Job
Batch
Flow
Cell

Question 2

What is job production

Answer 2

• one off or small number of items produced
• normally made to customers specifications e.g wedding cake
• often undertake by small, specialist businesses

Question 3

Advantages of job production

Answer 3

• customers requirements and changes can be handled
• associated with higher quality- can charge a higher price
• employees can be better motivated- more job satisfaction
• a flexible production method

Question 4

Disadvantages of job production

Answer 4

• individual cost of one unit may be high
• often labour intensive = high labour costs
• require close consultation with the client
• usually reliant on high skills

Question 5

What is batch production

Answer 5

• make a limited number of one identical product, then stop, recognise and make a batch of something else
• aim: concentrate skills, achieve better use of equipment and so produce good quality products more economically than manufacturing them individually

Question 6

Advantages of batch production

Answer 6

• cost savings can be achieved by buying in bulk
• still allows customers some choice
• products can be worked on by specialist staff or equipment at each stage
• allows a firm to handle unexpected orders

Question 7

Disadvantages of batch production

Answer 7

• takes time to switch production of one batch to another
• requires the business to maintain higher stocks of raw materials and work in progress
• tasks may become boring (repetitive) - reducing motivation
• size of batch dependent on capacity allocated

Question 8

Flow production

Answer 8

• producing as many as possible of an identical product
• used for mass market products
• usually highly automated
• products move continuously through production process with no stoppages

Question 9

Advantages of flow production

Answer 9

• cost per unit of production reduced through improved work and material flow
• suitable for manufacture of large quantities
• capacity intensive which means it can work constantly
• less need for training and skills

Question 10

Disadvantages of flow production

Answer 10

• very long set up and time and reliant on high quality management
• high raw materials and finished stocks unless lean production used
• goods are mass produced- less differentiation for the customer
• production is shut down if flow is stopped

Question 11

Cell production

Answer 11

• is where work is organised into teams

- teams are given responsibility of doing a part of production process as product moves through assembly line

Question 12

Cell production often leads to improved productivity due to:

Answer 12

• increases motivation (team spirit and added responsibility)
• specialisation

Question 13

What is specialisation

Answer 13

When work is divided into separate tasks or jobs that allow workers to become skilled at one of them

Question 14

Advantages of cell production

Answer 14

• improves communication amongst team members- less communications break downs
• workers become multi skilled and more flexible
• greater motivation and productivity of workers
• quality improvements as all cell members responsible for quality

Question 15

Disadvantages of cell production

Answer 15

• culture has to trust workers
• may need to invest in new material handling systems if moving to this method
• less intensive use of machinery
• staff need to be recruited carefully and trained

Question 16

What is automation?

Answer 16

Using machines or computers to complete tasks instead of humans I

Question 17

Under what circumstances is job production the most effective method?

Answer 17

When they need to meet specific requirements of the customer. When making individual, unique products.

Question 18

Under what circumstances is batch production the most effective?

Answer 18

• when production has to be split into chunks e.g shoe sizes
• when labour costs are high enough to mean job production is too costly
• when a firm wants to limit the availability of an item

Question 19

Under what circumstances is flow production the most effective method?

Answer 19

• when there is consistent, high demand for a single product
• when labour costs are high
• when efficiency allows prices low enough to boost sales on everyday items

Question 20

Under what circumstances is cell production the most effective method?

Answer 20

• when there is a need for flexibility but also high production volumes
• when labour has a lot to contribute to ideas and improves efficiency

Question 21

What is meant by productivity?

Answer 21

Output per worker. The speed at which an employee completes their task

Question 22

Formula for calculating productivity

Answer 22

Total output / number of workers

Question 23

How is productivity different from production?

Answer 23

Production- can be increased by employing more staff, working at same rate

Productivity- increases by improving the output produced by each worker

Question 24

Identify 3 factors affecting productivity

Answer 24

• quality and age of machinery
• skills and experience of workers
• level of employee motivation

Question 25

How does productivity link to competitiveness?

Answer 25

Higher levels of productivity lead to lower unit costs. This is because the labour cost involved making each unit falls as workers work faster. Lower unit costs allow businesses to cut prices while maintaining the same profit margin.

Question 26

What is efficiency?

Answer 26

Measures the extent to which the resources used in a process generate output without wastage

Question 27

How does quality and age of machinery affect efficiency?

Answer 27

Fewer breakdowns, mean fewer faults and newer machinery may produce with less variation

Question 28

How do skills and experience of workers affect efficiency?

Answer 28

Skilled staff are likely to make fewer mistakes, while experience can mean staff spot the problems that lead to faults before they occur

Question 29

How does the level of employee motivation affect motivation?

Answer 29

Motivation brings pride in work, so motivated staff will be careful not to make errors and to lose concentration less

Question 30

Identify 3 implications to a business if they are labour intensive

Answer 30

• labour costs will form a high proportion of total costs
• managing labour costs becomes critical, perhaps forcing a firm to move abroad to lower wage countries or spend heavily on motivational methods
• labour intensive production offers far greater scope for tailoring products to suit customers’ needs, thus adding value

Question 31

What does capital intensive mean?

Answer 31

Uses high levels of automation, reducing the role of humans as much as possible, replacing them with machines

Question 32

Identify 3 implications to a business if they are capital intensive?

Answer 32

• initial costs will be very high, with the need to invest in a lot of specialist machinery
• running costs will be relatively low
• it may offer little flexibility in terms of product variations

Question 33

Is job production likely to be labour or capital intensive?

Answer 33

Labour intensive

Question 34

Key difference between productivity and efficiency

Answer 34

Productivity- output per worker

Efficiency- measures the extent to which the resources used in a process generate output without wastage