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What is the definition of production?
Production is the process of converting raw materials and inputs into finished goods or services that can be sold in the market.
What are the three types of production?
Primary Production, Secondary Production, Tertiary Production.
What is the definition of productivity?
Productivity refers to the amount of output produced per unit of input in a given time period.
What is the formula for productivity?
Productivity = Total Output / Total Input.
Why is productivity important for businesses?
Increases efficiency, reduces costs, increases profitability, and enhances competitiveness.
Name a factor that affects productivity.
Technology, Labor Skills and Motivation, Capital Investment, Management, Workplace Environment.
What is the definition of efficiency?
Efficiency measures how well a business uses its resources to achieve output, producing maximum output with the least amount of input.
What is allocative efficiency?
Allocative efficiency occurs when resources are allocated in a way that maximizes total benefit to society.
What is productive efficiency?
Productive efficiency occurs when a firm produces goods and services at the lowest cost using the least amount of resources possible.
What is the efficiency formula?
Efficiency = (Output / Input) × 100.
What are economies of scale?
As production increases, businesses can lower their average costs per unit, leading to higher efficiency.
What are some ways to improve productivity and efficiency?
Investing in technology, staff training, streamlining operations, outsourcing, and lean production techniques.
What is one benefit of high productivity?
Cost Reduction, Competitive Advantage, Increased Profitability, Economic Growth.
What is a limitation of improving productivity and efficiency?
Diminishing Returns, Initial High Costs, Employee Resistance.
what are the four types of production
job production, flow production, cell production and batch production
what are the advantages of job production
Job production allows for customization, high quality, and flexibility in meeting specific customer needs, making it suitable for unique or specialized products.
What are the disadvantages of job production?
Job production has several disadvantages, such as higher costs per unit due to the custom nature of production, which requires skilled labor and time-intensive processes. It can also lead to longer lead times for delivery since each product is made individually. Additionally, job production often lacks economies of scale, making it less efficient for high-volume production as compared to other production methods like batch or flow production.
What are the advantages of batch production?
Batch production allows for a balance between high-volume production and customization. It provides flexibility in manufacturing, enables the production of different products without needing to switch entirely to a new production line, and can lead to lower costs per unit compared to job production due to improved efficiencies. Additionally, batch production often results in consistent quality across units and can be less labor-intensive than job production while still allowing for specific customization within batches.
What are the disadvantages of batch production?
Batch production can present several challenges, including: 1) Higher costs per unit due to the need for setup times for each batch, which can add significant expenses; 2) Increased inventory costs, as businesses must stock sufficient raw materials to fulfill multiple batches, tying up capital; 3) Inefficiencies in line changes, where the process of switching from one batch to another can disrupt the production flow, leading to delays and decreased productivity; 4) Variability in product quality, as outputs may differ across batches if production processes are not meticulously controlled and standardized; 5) Longer lead times for fulfilling customer orders, since products are produced in groups rather than on a continuous basis—resulting in delays in delivery and potential customer dissatisfaction.
What are the advantages of flow production?
Flow production, also known as continuous production, involves the mass production of standardized products using a highly automated and efficient process. The advantages include: 1) High efficiency due to the streamlined process that minimizes delays and optimizes the use of machinery; 2) Lower production costs per unit as fixed costs are spread over a larger number of units, resulting in economies of scale; 3) Consistent product quality due to automated processes that reduce human error; 4) Faster production times, enabling businesses to respond quickly to market demands; 5) Easier to maintain inventory control, as production schedules can be closely monitored and adjusted as necessary.
What are the disadvantages of flow production?
Flow production, while advantageous for efficiency and cost-effectiveness, has several notable disadvantages: 1) High Fixed Costs: The setup for flow production often involves significant investments in specialized machinery and technology, leading to high fixed costs that can strain finances if production volume is low; 2) Inflexibility: Flow production lines are often designed for specific products, making it challenging to switch to different products or adapt to sudden changes in consumer demand; 3) Risk of Disruptions: If one part of the production line fails, it can halt the entire process, leading to increased downtime and potential losses; 4) Limited Customization: This method typically produces standardized products with little room for variation, which may not meet all consumer preferences; 5) Potential for Overproduction: With continuous production, there is a risk of producing more than needed, which can lead to excess inventory and higher storage costs.
What are the advantages of cell production?
Cell production, also known as cellular manufacturing, organizes workstations in a layout that supports small teams (or 'cells') to produce a specific product or part. The advantages include: 1) Improved team collaboration: Cells foster close-knit teamwork, enhancing communication and motivation among workers; 2) Increased flexibility: Cell production can easily adapt to changes in product design or production volume, allowing swift responses to market demands; 3) Higher quality control: Workers in a cell take ownership of the entire production process of a product, leading to better quality assurance and reduced defects; 4) Reduced lead times: With dedicated teams responsible for specific tasks, production flow is streamlined, enabling faster completion of products; 5) Enhanced employee satisfaction: The autonomy and responsibility given to teams often result in higher job satisfaction and engagement among workers.
what are the disadvantages of cell production
Cell production, while beneficial for flexibility and teamwork, has several disadvantages: 1) Higher variable costs: The need for multiple teams can lead to increased labour costs compared to flow production; 2) Complexity in management: Coordinating various cells can be challenging and may require more oversight; 3) Potential for inconsistent quality: Variations in team performance may lead to differences in product quality; 4) Space requirements: Organizing multiple cells may require more floor space than traditional production lines; 5) Training needs: Employees may require more training to work effectively in a cell-based system.
