production, productivity + efficiency

• What is the process of creating a product or delivering a service considered to be?

  A crucial source of competitive advantage
• Why is it vital to ensure production is efficient?

  To manage business resources effectively
• What is the trade-off in organizing production?

  Uniformity and speed versus customization
• What is job production?

  Producing products as single items
• When is job production usually used?

  For unique products or small scale production
• Who typically carries out job production?

  Skilled experts
• What is a benefit of job production regarding pricing?

  Can charge higher prices for customization
• Why might job production be more interesting for staff?

  It allows for customization of products
• What is a drawback of job production?

  High cost per unit
• Why is finding skilled staff a challenge in job production?

  Skilled labor is hard to find
• What is a characteristic of batch production?

  Production is broken into separate operations
• What is a benefit of batch production regarding flexibility?

  Allows variation in the product being made
• How does batch production compare to job production in terms of speed?

  Batch production is speedier than job production
• What is a drawback of batch production regarding setup costs?

  More costly to set up than job production
• Why is flow production considered capital intensive?

  It requires high-quality machinery
• What is flow production primarily used for?

  Standardized products on an assembly line
• What happens if there is a fault in flow production?

  The whole line stops
• How does cell production differ from flow production?

  Cell production involves teamwork and job rotation
• What is a disadvantage of cell production regarding output?

  Output will be lower than mass production
• What is productivity a measure of?

  The efficiency of production
• How is labour productivity calculated?

  Labour productivity = Total Output / Number of employees
• If a hairdressing business has four employees and cuts 128 heads of hair, what is the labour productivity?

  32 heads of hair per employee
• What factor influences productivity related to inputs?

  Quality of inputs affects productivity
• How does motivation influence productivity?

  High motivation leads to higher productivity
• What is the relationship between productivity and average costs?

  Higher productivity reduces average costs
• What is efficiency in a business context?

  Using production resources cost-effectively
• How is average cost per unit calculated?

  Average cost per unit = Total Costs / Number of units
• What is maximum efficiency achieved?

  When cost per unit is at its lowest
• How does quality of inputs influence efficiency?

  High quality reduces waste and increases output
• What is labour-intensive production?

  Production process involving a lot of labor
• What is capital-intensive production?

  Production primarily mechanized with few workers
• If a factory employs 108 staff and manufactures 45,639 chairs, what is the productivity per worker?

  $422.5 \text{ chairs per worker}$
• If output rises by 8.4%, how do you calculate the change in productivity?

  Calculate new output and divide by workers
• How do you calculate the labour productivity of Banana Moon producing 6000 T-shirts with 40 staff?

  $150 \text{ T-shirts per worker}$
• If Holmlith Stoves produced 1800 stoves with a productivity of 360 stoves per worker, how many staff are employed?

  5 workers