topic 4

Question 1

What is Production?

Answer 1

The process of creating goods or services by combining resources (inputs) to make outputs.

Question 2

What are the advantages of Production?

Answer 2

Satisfies customer needs, creates goods for sale.

Question 3

What are the disadvantages of Production?

Answer 3

Needs planning and coordination; uses up resources.

Question 4

What is Job Production?

Answer 4

Producing one-off, unique items for a specific customer.

Question 5

What are the advantages of Job Production?

Answer 5

High quality, customization, worker satisfaction.

Question 6

What are the disadvantages of Job Production?

Answer 6

Expensive, slow, not suitable for mass production.

Question 7

What is Batch Production?

Answer 7

Producing a limited number of identical products in groups or ‘batches.’

Question 8

What are the advantages of Batch Production?

Answer 8

Economies of scale, quicker than job production, flexible for small orders.

Question 9

What are the disadvantages of Batch Production?

Answer 9

Time lost switching batches; possible wastage.

Question 10

What is Flow Production?

Answer 10

Large-scale production of standardized products, usually on an assembly line.

Question 11

What are the advantages of Flow Production?

Answer 11

Very efficient, low unit costs, consistent quality.

Question 12

What are the disadvantages of Flow Production?

Answer 12

High setup cost, boring for workers, not flexible.

Question 13

What is Lean Production?

Answer 13

Producing goods/services with minimal waste while maintaining quality.

Question 14

What are the advantages of Lean Production?

Answer 14

Lower costs, better productivity and quality.

Question 15

What are the disadvantages of Lean Production?

Answer 15

Requires skilled workers and good planning.

Question 16

What is Just-in-Time (JIT)?

Answer 16

Inventory system where materials arrive exactly when needed, and no stock is stored.

Question 17

What are the advantages of Just-in-Time (JIT)?

Answer 17

Saves storage space, reduces waste and costs.

Question 18

What are the disadvantages of Just-in-Time (JIT)?

Answer 18

Risk of delays and stockouts if deliveries fail.

Question 19

What is Kaizen?

Answer 19

Continuous small improvements by all workers.

Question 20

What are the advantages of Kaizen?

Answer 20

Improves efficiency and morale over time.

Question 21

What are the disadvantages of Kaizen?

Answer 21

Takes time, requires full staff participation.

Question 22

What are Fixed Costs?

Answer 22

Costs that stay the same regardless of output (e.g. rent, salaries).

Question 23

What are the advantages of Fixed Costs?

Answer 23

Predictable, easier for budgeting.

Question 24

What are the disadvantages of Fixed Costs?

Answer 24

Must be paid even with low/no sales.

Question 25

What are Variable Costs?

Answer 25

Costs that change directly with output (e.g. raw materials).

Question 26

What are the advantages of Variable Costs?

Answer 26

Only incurred when producing.

Question 27

What are the disadvantages of Variable Costs?

Answer 27

Less predictable than fixed costs.

Question 28

What are Total Costs?

Answer 28

Fixed Costs + Variable Costs.

Question 29

What are the advantages of Total Costs?

Answer 29

Shows full expense of operating.

Question 30

What are the disadvantages of Total Costs?

Answer 30

Doesn’t show per unit cost.

Question 31

What is Average Cost?

Answer 31

Total Cost ÷ Output.

Question 32

What are the advantages of Average Cost?

Answer 32

Helps set prices and compare efficiency.

Question 33

What are the disadvantages of Average Cost?

Answer 33

Doesn’t show variation between products.

Question 34

What are Economies of Scale?

Answer 34

Reduction in average cost as output increases.

Question 35

What are the advantages of Economies of Scale?

Answer 35

Lower costs, higher profitability, competitive advantage.

Question 36

What are the disadvantages of Economies of Scale?

Answer 36

May lead to diseconomies if overgrown.

Question 37

What are Diseconomies of Scale?

Answer 37

Increase in average cost as the business becomes too large.

Question 38

What are the advantages of Diseconomies of Scale?

Answer 38

Identifies growth limits.

Question 39

What are the disadvantages of Diseconomies of Scale?

Answer 39

Leads to inefficiency, communication issues, and low motivation.

Question 40

What is Quality?

Answer 40

Meeting customer expectations and being free from defects.

Question 41

What are the advantages of Quality?

Answer 41

Leads to customer satisfaction and loyalty.

Question 42

What are the disadvantages of Quality?

Answer 42

Can be costly to maintain.

Question 43

What is Quality Control?

Answer 43

Inspecting products at the end of production.

Question 44

What are the advantages of Quality Control?

Answer 44

Prevents defective products from reaching customers.

Question 45

What are the disadvantages of Quality Control?

Answer 45

Wasteful, problems found too late.

Question 46

What is Quality Assurance?

Answer 46

Ensuring quality throughout the production process.

Question 47

What are the advantages of Quality Assurance?

Answer 47

Reduces waste, improves product and process.

Question 48

What are the disadvantages of Quality Assurance?

Answer 48

Time-consuming and expensive to implement.

Question 49

What is Total Quality Management (TQM)?

Answer 49

Whole-company approach where every employee is responsible for quality.

Question 50

What are the advantages of Total Quality Management (TQM)?

Answer 50

Long-term improvement, team involvement.

Question 51

What are the disadvantages of Total Quality Management (TQM)?

Answer 51

High training cost, takes time to show results.

Question 52

What is Inventory (Stock)?

Answer 52

Materials and goods held by a business (raw materials, WIP, finished goods).

Question 53

What are the advantages of Inventory (Stock)?

Answer 53

Ensures smooth production, prevents stockouts.

Question 54

What are the disadvantages of Inventory (Stock)?

Answer 54

Costly to store, risk of obsolescence or spoilage.

Question 55

What is Buffer Stock?

Answer 55

Extra stock kept in case of demand spikes or delivery delays.

Question 56

What are the advantages of Buffer Stock?

Answer 56

Ensures operations run smoothly.

Question 57

What are the disadvantages of Buffer Stock?

Answer 57

Higher storage and insurance costs.

Question 58

What is Procurement?

Answer 58

Process of finding and obtaining goods and services from suppliers.

Question 59

What are the advantages of Procurement?

Answer 59

Can secure best deals, ensures supply.

Question 60

What are the disadvantages of Procurement?

Answer 60

Poor procurement can delay production.

Question 61

What is Supply Chain?

Answer 61

The sequence of businesses that are involved in producing and distributing a product.

Question 62

What are the advantages of Supply Chain?

Answer 62

Improves efficiency and delivery.

Question 63

What are the disadvantages of Supply Chain?

Answer 63

Breakdowns in one part affect the whole chain.

Question 64

What is Logistics?

Answer 64

Managing the movement and storage of goods and information through the supply chain.

Question 65

What are the advantages of Logistics?

Answer 65

Better delivery times, improved customer satisfaction.

Question 66

What are the disadvantages of Logistics?

Answer 66

Requires good systems and is expensive to maintain.

Question 67

What is Capital-Intensive Production?

Answer 67

Uses more machinery than labor in production.

Question 68

What are the advantages of Capital-Intensive Production?

Answer 68

Efficient for large-scale production, consistent output.

Question 69

What are the disadvantages of Capital-Intensive Production?

Answer 69

High capital cost, low flexibility.

Question 70

What is Labour-Intensive Production?

Answer 70

Uses more workers than machinery in production.

Question 71

What are the advantages of Labour-Intensive Production?

Answer 71

More flexible, creates jobs.

Question 72

What are the disadvantages of Labour-Intensive Production?

Answer 72

Higher ongoing wage costs, human error possible.

Question 73

What are Location Decisions?

Answer 73

Choosing the best location for business operations based on cost, accessibility, and resources.

Question 74

What are the advantages of Location Decisions?

Answer 74

Can reduce costs and increase efficiency.

Question 75

What are the disadvantages of Location Decisions?

Answer 75

Bad location can reduce sales or raise expenses.