Chapter 18 - Valentina Miranda

Question 1

Define production

Answer 1

It is the provision of a product or service to satisfy consumer wants and needs.

Question 2

Define productivity

Answer 2

It is the output measured against the inputs to create it.

Question 3

State the benefits of increasing efficiency/productivity

Answer 3

• Reduced inputs needed for the same amount of outputs
• Lower costs per unit
• Fewer workers may be needed, possibly leading to lower wages
• Higher wages might now be paid to workers, which increases motivation

Question 4

What is meant by buffer inventory?

Answer 4

It is the inventory level held to deal with uncertainty in customer demand and deliveries of supplies.

Question 5

Define lean production

Answer 5

It is a term for techniques used to by businesses to cut down on waste and increase efficiency.

Question 6

State the types of waste that can occur in production

Answer 6

• Overproduction
• Waiting
• Transportation
• Unnecessary inventory
• Motion
• Over-processing
• Defects

Question 7

State the benefits of lean production

Answer 7

• Quicker production of goods and services
• Less storage of raw materials or components
• Less money tied up in inventories
• Improved health and safety
• Better use of equipment
• No need to repair defects
• Cutting out processes, which speeds up production

Question 8

Describe the methods of production

Answer 8

• Job production: It is where a single product is made at a time.
• Batch production: It is where a quantity of one product is made, then a quantity of another item will be produced.
• Flow production: It is where large quantities of a product are produced in a continuous process.

Question 9

Mention the advantages of new technology in production methods

Answer 9

• Productivity is greater ask new, more efficient methods are used, reducing average cost.
• Greater job satisfaction stimulates workers, as routine and boring jobs are now done by machines.
• More skilled workers may be needed to use and maintain the new technology. Businesses must offer training to existing workers in the use of new technology. The workers may become more motivated and therefore improve the quality of their work .
• Better quality products are produced owing to more accurate production methods.
• Quicker communication and reduced paperwork, owing to computers lead to increased profitability.
• The information that is available two managers through the use of IT is much greater and this should result in better and quicker decision-making.
• New high tech products are introduced as new technology makes completely new products available.

Question 10

Mention the disadvantages of new technology in production methods

Answer 10

• Unemployment could rise as machines/computers replace people on the factory floor and in offices.
• It is expensive to invest in new technology products and machinery. This increases the risk as large quantities of products need to be sold to cover the cost of purchasing the equipment.
• Employees may be unhappy with the changes In their work practices when new technology is introduced.
• New technology is changing all the time and will often become outdated quite quickly and need to be replaced if the business is to remain competitive.