Chapter 4.1 Flashcards
(23 cards)
What is production?
Production is the process of converting inputs (like land and labor) into goods, such as combining water, yeast, sugar, salt, oil, and flour to make bread.
What is productivity?
Productivity is the measure of efficiency in the production process, aiming to achieve higher output with fewer inputs.
How can a business increase productivity?
By improving employee education and training, introducing automation, improving motivation, and enhancing quality control.
What is the benefit of increased productivity?
It lowers average costs, reduces the number of workers needed, and can lead to higher wages and motivation with the same output.
What is inventory management?
Inventory management involves keeping stocks to meet customer demand, ensuring products are available when needed without excessive storage.
What factors influence inventory levels?
Sales quantity, product perishability, storage costs, supplier reliability, and the size and production method of the business.
What is lean production?
Lean production involves techniques to minimize waste and increase efficiency, such as reducing overproduction, unnecessary inventory, waiting time, and defects.
What are the benefits of lean production?
Reduced storage costs, quicker production, fewer quality issues, and lower overall business costs.
What is Kaizen?
Kaizen is a Japanese term meaning continuous improvement, where small employee groups discuss and solve production issues for better efficiency.
What is just-in-time (JIT) inventory control?
JIT is when raw materials are delivered just in time for production, reducing the need for holding inventory and saving storage space.
What is job production?
Job production is when a single item is produced to order, tailored to exact customer specifications.
What are the advantages of job production?
It meets customer needs precisely and offers flexible, unique products, which can lead to brand loyalty.
What are the disadvantages of job production?
It is slower, more costly, and errors are expensive to fix.
What is batch production?
Batch production involves making similar products in batches, allowing for flexibility and some economies of scale.
What are the disadvantages of batch production?
High reset times between batches, the cost of storing semi-finished goods, and errors in machine settings affecting the entire batch.
What is flow production?
Flow production is the continuous production of large quantities of the same product with high output and low labor.
What are the disadvantages of flow production?
It is inflexible, requires significant capital investment, reduces employee motivation, and has high setup costs.
What factors influence which production method to use?
Product nature, market size, demand type, business size, and available capital.
What is automation?
Automation uses computers to control machinery, increasing efficiency and production speed.
What is mechanization?
Mechanization involves machines operated by humans, increasing production efficiency but still requiring human input.
What is computer-aided design (CAD)?
CAD is the use of computers to design products before production.
What are the advantages of using technology in production?
Greater productivity, higher quality, better inventory control, fewer errors, and reduced labor costs.
What are the disadvantages of using technology in production?
It can lead to unemployment, high setup and maintenance costs, and employee adjustment issues.
