Business - 4.1 Flashcards
(61 cards)
1
Q
production - definition
A
conversion of factors of production into final product / service to satisfy consumer wants and needs
2
Q
productivity - definition
A
output measured against the inputs used to create it
*used to measure efficiency
3
Q
productivity - equation
A
output / quantity of input
4
Q
labour productivity - equation
A
output (over a period of time) / no of employees
5
Q
how to increase productivity
A
- less inputs for same output
- same inputs for more output
6
Q
ways to increase productivity and efficiency (8)
A
- inventory control to reduce waste
- become capital-intensive
- improve training for employee efficiency
- motivate employees
- new technology
- set clear policies (breaks)
- set SMART goals
- lean production
7
Q
increasing efficiency/productivity - advantages
A
- reduced inputs needed for same level of output
- lower costs per unit
- possible reduction in workers, lower wage costs
- higher wages = higher motivation
8
Q
increasing efficiency / productivity - disadvantages
A
- job losses (replaced with machinery)
- increased costs bec of machinery / technology
- over production
- lower quality if not controlled (too fast)
9
Q
factors affecting LABOUR productivity
A
- education, training and skills of the workforce
- working condition
- wages
- type of technology
- health
- age
- management style / company policy
- internet / social media
10
Q
labour productivity - definition
A
measures how much each worker produces in a given time period.
11
Q
capital production - definition
A
measures how efficiently a business is using its capital (machinery, equipment, tools) to produce goods or services.
12
Q
capital productivity - equation
A
total output / amount of capital
13
Q
factor effecting capital productivity
A
- technological progress
- maintenance of machinery
- skills of workforce
- age of the machines
14
Q
land productivity - definition
A
measures how efficiently a business uses its land resources (e.g. farmland, factory space, office floors) to produce goods or services.
15
Q
land productivity - equations
A
total output / area of land used
16
Q
factors affecting land productivity
A
- farming methods
- quality / fertility of land
- management / government policies
- pollution / land degradation
- investment
17
Q
efficiency - main idea
A
- comparison with what is being produced and what should be produces (reality check)
- to be VERY efficient = maximum output with lowest cost
18
Q
lean production - definition
A
method of production that aims to reduce waste and improve efficiency without compromising quality.
19
Q
lean production- main idea
A
- cuts out activities that dont add value
- aims to reduce time taken to produce a product
- doing simple things well
- continuous improvements (kaizen)
- avoiding waste
20
Q
7 types of waste that occur in production
A
- overproduction
- waiting
- transportation
- unnecessary inventory
- motion
- over-processing
- defects
21
Q
overproduction - 7 wastes
A
- making more than is needed and/or too early
- wastes materials, storage space and costs
22
Q
waiting - 7 wastes
A
- people / machines being idle while waiting for products
- wastes time
23
Q
transportation - 7 wastes
A
- moving products / materials more than needed
- wastes time, fuel, labour and risks damage
24
Q
unnecessary inventory - 7 wastes
A
- holding too much stock
- wastes space and risk of damage / expiry
25
motion - 7 wastes
- unnecessary movement by workers
- wastes energy, time
26
over-processing - 7 wastes
- doing more work than needed / over-complicating
- wastes time, resources
27
defects - 7 wastes
- faulty products that need rework / thrown away
- wastes materials, time, labour, customer trust
28
lean production - advatanges
- less storage
- lower costs
- quicker production
- less defects (quality control)
- better use of equipment
- better for health/safety (motion waste reduction)
29
lean production - disadvantages
- risk of delay (JIT inventory)
- high initial costs
- stress for workers (keeping up)
- requires good communication
- not suitable for industries with unpredictable demand
30
lean production - how to achieve
- kaizen
- just-in-time inventory (JIT)
- cell production
31
kaizen - definition
Japanese term meaning 'continuous improvement' through the elimination of waste
32
kaizen - main idea
- small ongoing changes
- made by all employees to improve efficiency, quality and processes
- its continuous improvement (regularly made)
- team-based (involves all workers)
33
kaizen - advantages
- increased productivity
- reduced waste (space, time)
- more completed tasks
- job creation (changing things, opening new jobs)
- low-cost improvements
34
kaizen - disadvantages
- can take time to see results
- requires a lot of teamwork
35
just-in-time (JIT) - definition
reducing the need to store inventories (raw materials / unsold inventories) of the finished product
36
JIT - main idea
- stock control method
- materials and components are delivered when they are needed
- no / minimal inventory is stored
- tight coordination / good planning
37
JIT - advantages
- lower storage costs
- less waste (outdated items)
- encourages efficiency
38
JIT - disadvantages
- risk of delay
- no room for error
- high dependence on suppliers
- not ideal for unpredictable demand
39
cell production - definition
the work is divided into teams (called cells), and each team is responsible for completing a whole part of the product.
40
cell production - main idea
- teamwork (small, self-managed groups)
- workflow (groups handles sections from start to finish)
- responsibility (ownership)
- flexibility (easier to adapt to production for different products)
41
cell production - advantages
- increased motivation (varied work is more satisfying/fun when done with others)
- improved quality (teams can check on product before passing on)
- better communication (each cell talks / solves problems together)
- flexibility (easier to adapt for custom and smaller orders)
42
cell production - disadvantages
- requires skilled workers (workers need to be trained)
- not always efficient (duplication of tasks/tools)
- set-up time (organising cells take time)
- uneven workloads (different cells are busier than others)
43
3 types of production
1. job production
2. batch production
3. flow production
44
job production - definition
where a single product is made at a time
45
job production - main idea
- specifically made to order
46
job production - advantages
- most suitable for personal services / 'one-off' products
- meets exact requirements
- workers have varied jobs (employee motivation)
- flexible
- charge higher prices for high quality
47
job production - disadvantages
- skilled labour (increased cost)
- labour intensive (increased cost)
- production can take a long time
- errors may be expensive to correct
- materials may need to be specifically purchased (not in bulk)
48
batch production - definition
- where a quantity of one product is made, then a quantity of another item will be produced
49
batch production - main idea
- batch by batch
- goes through one stage at a time
- used for limited runs / different variations (flavours / sizes)
50
batch production - advantages (4)
- made and bought in bulk, lower cost than job.p
- can variate product
- workers can specialise at each stage
51
batch production - disadvantages
- time lost when switching between batches
- storage costs are high for completed batches
- mistakes can affect a whole batch
- less variety then job.p
- less flow than flow.p
52
flow production - meaning
- where large quantities of a product are produced in a continuous process
53
flow production - main idea
- also known as mass production
- captial-intensive
- same/identical product made non-stop
- often used for high-volume goods (cars, soft drinks, mobile phones)
- like an assembly line (continuous and fast)
-
54
flow production - advantages
- low unit cost (bought in bulk / economies of scale)
- very efficient & fast
- low labour costs (automated)
- consistent quality with machines doing repetitive tasks
55
flow production - disadvantages
- expensive to set up
- inflexible (hard to change design one line runs)
- less motivation (boring for workers)
- one part breaks / empty, whole production stops
56
factors affecting which method of production to use
- nature of the product
- size of the market (demand and supply)
- size of business
57
technology affect production methods
- improved effiency
- changed how goods are produced
- reduced labour
- improved product quality and consistency
- enabled new production methods
58
types of technology in production (5)
1. automation : machines doing tasks with little human input
2. mechanisation : robots work non stop, and completes dangerous/unpleasant tasks
3. CAD, computer-aided design : helps design quicker
4. CAM, computer-aided manufacture : computers monitoring production process and control machines/robots on factory floor
5. CIM, computer-integrated manufacturing : total integration of CAD and CAM
59
electronic payment methods (3)
- EPOS, electronic point of sale : scans product barcodes, able to track trends for decision-making & linked to inventory / stock systems
- EFTPOS, electronic funds transfer at point of sale : paid directly from credit / debit card, funds transferred electronically
- contactless payment : works with near field communication (NFC), payment is limited but quick
60
new technology - advantages
- reduces average costs
- productivity is increased
- greater job satisfaction (motivation)
- better quality and accuracy
- new product availability
61
new technology - disadvantage
- unemployment, replaced by computers
- expensive to invest in new tech
- employees become unhappy with changed ways
- can become outdated as tech is always improving
