2.4.1 Production, Productivity, and Efficiency

    Cards (23)

    • Production is the process of transforming raw materials and resources into finished goods and services
    • Match the production method with its key feature:
      Job Production ↔️ High flexibility
      Batch Production ↔️ Moderate quantities
      Flow Production ↔️ Automated processes
      Cellular Manufacturing ↔️ Specific product families
    • Choosing the right production method is crucial for efficiency and meeting customer demands.
    • Flow production is characterized by high output, automated processes, and lower costs
    • What is job production typically used for?
      Unique, custom products
    • What type of production method is suitable for bakeries?
      Batch Production
    • Productivity measures how efficiently inputs are converted into outputs
    • The formula for productivity is Total Output divided by Total Input.
    • If a factory produces 1000 units using 100 hours of labor, what is the productivity?
      10 units per hour
    • High efficiency minimizes waste and maximizes output
    • Technical efficiency focuses on using resources to achieve maximum output with minimal input.
    • Allocative efficiency ensures resources are allocated to produce goods and services that meet consumer demand
    • Productivity is calculated as Total Output divided by Total Input
    • High efficiency leads to cost savings and higher profitability.
    • Match the type of efficiency with its description:
      Technical Efficiency ↔️ Achieving maximum output with the least input
      Allocative Efficiency ↔️ Producing goods consumers desire most
      Economic Efficiency ↔️ Combining technical and allocative efficiency
    • If a factory's profit equals its cost, its efficiency score is 1
    • Production is the process of transforming raw materials into finished goods or services
    • Order the production methods from most flexible to least flexible:
      1️⃣ Job Production
      2️⃣ Batch Production
      3️⃣ Cellular Manufacturing
      4️⃣ Flow Production
    • Job production creates unique, custom products one at a time.
    • Technical efficiency involves achieving maximum output with the least input
    • An efficiency score of 1 signifies that resources have been used effectively to generate profit.
    • Productivity measures the efficiency of converting inputs into outputs
    • Match the concept with its focus:
      Production ↔️ Creation of goods/services
      Productivity ↔️ Efficiency of conversion
      Efficiency ↔️ Best possible results