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Theme 2: Managing Business Activities
2.4 Resource Management
2.4.1 Production, Productivity, and Efficiency
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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