chapter 18 Flashcards
(27 cards)
what will a typical manufacturing business have
- factory manger who will be responsible for the quantity and quality coming off a production line
- a purchasing manager who will be responsible for providing the materials and equipments
- a research and development manager responsible for the design and testing of the new production process
how can we calculate the productivity
productivity = output / quantity of input
define productivity
productivity is the output measured against the inputs used to create it
how can we calculate labour productivity
labour productivity = output/ number of employees
what are the benefits of increasing productivity
- reduced input needed for the same output level
- lower costs per unit
- fewer workers may be needed
- higher wages might be paid
what are the ways to increase the productivity and efficiency
- improve quality of the product and inventory to reduce waste
- replace employees with machines
- improve training to increase the employees efficiency
- motivate employees more effectively
define lean production
lean production is the term for those techniques used by businesses to cut down on waste and therefore increase efficiency
how can lean production be achieved
kaizen, just in time inventory control, cell production
define buffer inventory
buffer inventory level is the inventory held to deal with uncertainty in customer demand and deliveries of supplies
what are the seven types of waste that can happen in production
- overproduction
- transportation
- unnecessary inventory
- motion
- over processing
- defect
what are the benefits of lean production
- less storage of raw materials
- quicker production of goods and services
- better use of equipment
- less money tied up in inventories
what are the advantages of kaizen
- increased productivity
- reduced amount of space needed for the production process
- work in progress is reduced
- improved layout of factory floor
define kaizen
kaizen is a japanese term meaning ‘ continuous improvement’ through elimination of waste
define just in time (JIT)
just in time (JIT) is a production method that involves reducing or virtually eliminating the need to hold inventories of raw materials or unsold inventories of the finished product
define batch production
batch production is where a quantity of one product is made, then a quantity of another item will be produced
define job production
job production is where a single product is made at a time
define flow production
flow production is where large quantities of a product are produced in a continuous process. it is sometimes referred to as mass production
what are the three main methods of production
job production, batch production, flow production
what are the advantages of job production
- most suitable for personal services
- product meets the exact requirements of the customer
- workers often have more varied jobs
- flexible and often used for high quality goods and services
what are the disadvantages of job production
- skilled labour is often used and this raises costs
- costs are higher because often labour is intensive
- production takes a long time
- materials may need to be specially purchased
what are the advantages of batch production
- flexible way of working and production can easily be changed from one product to another
- gives some variety to workers
- production may not be affected
what are the disadvantages of flow production
- a very boring system for the workers, so only a little bit of job satisfaction
- significant storage requirements
- capitals lost of setting up the production line can be high
what are the disadvantages of batch production
- can be expensive as semi finished products will need moving about to the next production stage
- machines have to be reset between production batches meaning that it is delayed and output is lost
- warehouse space will be needed for other products
what are the factorings affecting which method of production to use
- the nature of the product
- the size of the market
- nature of demand
- size of the business
