Increasing efficiency and productivity Flashcards
(12 cards)
What is productivity?
The output per worker in a given time period.
What is efficiency?
Getting more output from a given amount of inputs.
What does greater efficiency lead to?
Decreased unit costs and increased profits.
What are some problems with increasing productivity?
Reduced quality
Job losses
What is lean production?
Making products efficiently, with fewer resources, and no waste.
What are examples of lean production?
Just-in-time
Time-based management
Kaizen
What is just-in-time production?
Where goods are produced or delivered only when they are needed.
What are advantages of just-in-time production?
Less waste
Improved cash flow
What are disadvantages of just-in-time production?
High dependence on suppliers
No buffer stock
What is time-based management?
An approach that aims to reduce wasted time in the production process.
What are advantages of time-based management?
Faster response to customer needs
Increased efficiency
What are disadvantages of time-based management?
Reliance on strong coordination and communication.
