Production Management and Productivity

Businesses can increase production efficiency by improving employee skills through training, which reduces waste and increases output. Additionally, automation using machinery and IT equipment can speed up production processes, minimize errors, and enhance overall efficiency.

Inventory management is crucial for businesses to ensure they have enough raw materials, work-in-progress goods, and finished goods to meet customer demand. It helps avoid stockouts, which can lead to lost sales and dissatisfied customers. Moreover, efficient inventory management minimizes holding costs and ensures timely replenishment.

Productivity and average costs of production are inversely related. When productivity increases, meaning more output is produced per unit of input, the average cost of producing each unit decreases. This is because fixed costs are spread over a larger number of units, resulting in lower costs per unit.

<p>Ineffective inventory management can have significant negative consequences, including stockouts, leading to missed sales and customer dissatisfaction. Excess inventory can also lead to high storage and maintenance costs, tying up valuable capital. Furthermore, outdated or spoiled inventory can result in financial losses.</p> Signup and view all the answers

<p>The reorder level serves as a trigger point for replenishing inventory. When the inventory level reaches the reorder level, the business places an order for more stock to ensure that it doesn't run out of goods before the new supply arrives.</p> Signup and view all the answers

<p>Lead time is the duration between placing a reorder order for inventory and receiving the new supply. It is crucial for determining the reorder level and ensuring that the business has enough buffer inventory to meet demand during the lead time.</p> Signup and view all the answers

<p>Investing in training can result in a more skilled and productive workforce. Trained employees are better equipped to perform their tasks efficiently, minimizing waste and increasing output. This translates to lower costs, improved product quality, and enhanced competitiveness.</p> Signup and view all the answers

<p>Quality control and assurance systems are critical for maintaining consistent product quality and minimizing waste. They identify and address potential problems in the production process, ensuring that final products meet customer expectations. This helps prevent defects, rework, and customer complaints, ultimately enhancing customer satisfaction and loyalty.</p> Signup and view all the answers

<p>Technology can contribute to greater productivity through automation, which allows for faster and more efficient production processes, and through the use of CIM, which streamlines the design and manufacturing process.</p> Signup and view all the answers

<p>CAD, or Computer Aided Designing, refers to a software that allows for digital product design. It enables faster and more versatile design processes, allowing for 3D visualization and modification of designs.</p> Signup and view all the answers

<p>One drawback of advanced technology in manufacturing is the potential for unemployment, as machines displace human labor. Another challenge is that employees may require time to adapt to new technologies, which can lead to resistance or a decline in work satisfaction.</p> Signup and view all the answers

<p>Batch production is often favored by small businesses with limited capital, as it involves producing goods in batches, allowing for flexibility and less investment in large-scale automated systems.</p> Signup and view all the answers

<p>A company might choose mechanization over automation when the production process doesn't require the complex control and precision of automated systems. Mechanization offers a more cost-effective solution for simpler tasks.</p> Signup and view all the answers

<p>CIM, or Computer Integrated Manufacturing, integrates CAD and CAM systems. The design data generated in CAD is directly transmitted to the CAM software for manufacturing, eliminating the need for manual data transfer and minimizing errors.</p> Signup and view all the answers

<p>EPOS, or Electronic Point-of-Sale technology, is utilized in retail settings to streamline checkout processes. It automatically scans and processes bar codes, calculates prices, and generates receipts. Moreover, it can also automatically track inventory, reducing the risk of stock shortages.</p> Signup and view all the answers

<p>EFTPOS, or Electronic Funds Transfer at Point-of-Sale, is integrated with electronic cash registers in retail settings. Customers use debit cards at the EFTPOS terminal, which is linked to the retailer's computer and various banks, enabling instant transaction and withdrawal of funds.</p> Signup and view all the answers

<p>Lean production is a set of techniques aimed at reducing waste and increasing efficiency/productivity in a firm.</p> Signup and view all the answers

<p>Two types of waste in lean production include overproduction, producing more than needed, leading to high inventory costs and wasted resources. Waiting occurs when goods are not being moved or processed, resulting in idle time and increased production lead times.</p> Signup and view all the answers

<p>Benefits include reduced storage costs, quicker production times, reduced need for repair, lower overall costs, more competitive pricing, and the potential for higher profits.</p> Signup and view all the answers

<p>Kaizen emphasizes continuous improvement by involving workers in identifying and addressing problems. This improves efficiency and reduces waste by leveraging the knowledge of those closest to the production process.</p> Signup and view all the answers

<p>Just-in-Time (JIT) eliminates the need to hold inventory by ensuring supplies arrive only when needed. Parts are made just in time for the next production stage, and finished goods are produced just in time for delivery.</p> Signup and view all the answers

<p>The benefits of JIT include reduced inventory holding costs, elimination of warehouse space, faster cash flow due to immediate sales of finished goods, and less waste of materials and time.</p> Signup and view all the answers

<p>Cell production divides the production line into self-contained units, each responsible for a specific part of the finished product. This improves worker morale and efficiency by fostering teamwork and specialized expertise.</p> Signup and view all the answers

<p>Job production involves making customized products to order, meeting the specific requirements of each customer. This method is suitable for unique products and allows for greater flexibility and customer satisfaction.</p> Signup and view all the answers

<p>Disadvantages include the need for skilled labor (often expensive), higher production costs due to labor intensity, longer production times, potential for costly errors, and the need for specially purchased materials for each order, which adds further expense.</p> Signup and view all the answers

<p>Disadvantages include high costs associated with moving finished and semi-finished goods, machine reset time between batches which delays production, and the need for large amounts of raw materials for different batches, all contributing to higher costs.</p> Signup and view all the answers

<p>Flow production involves producing large quantities of identical products in a continuous process on a production line. This method offers high output, low long-run costs, potential economies of scale, 24/7 production capability, and efficient, fast production.</p> Signup and view all the answers

<p>Factors include the nature of the product (customized vs. standardized), size of the market (large vs. niche), and the nature of demand (steady vs. fluctuating).</p> Signup and view all the answers

<p>Steady and predictable demand often favors flow production, as it allows for continuous production and efficient utilization of resources. If demand fluctuates, batch or job production may be more suitable to adjust output based on changing needs.</p> Signup and view all the answers

<p>A custom-made wedding cake would be most suitable for job production, as it requires unique designs and personalized details to meet individual customer preferences.</p> Signup and view all the answers