Production Function and Quality Control

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What is meant by 'The production function'?

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Production is the combination of the factors of production (raw materials, labour, capital and entrepreneurial skills) to supply the correct product at the right place and time in the required amount and at the price the consumer is willing to pay for the product.

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What is the goal of the production function?

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The production function's goal is to create value and utility, where raw materials are converted into a form that can be used to satisfy needs.

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What are the important considerations in the production function?

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It is important to keep manufacturing costs as low as possible while maintaining quality standards. Ongoing product design is important to meet customer needs.

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What is meant by 'Automation'?

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Automation refers to a situation where activities done by hand are now machine-based, becoming increasingly important in the production process.

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What are the advantages of automation?

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1. Lower labour costs as fewer workers are needed. 2. Faster production time. 3. Usually better quality due to fewer mistakes. 4. Workers can be retrained for new skills, potentially leading to higher salaries.

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What are the disadvantages of automation?

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1. High capital investment for machines. 2. Job loss for workers replaced by machines. 3. Tedious work leading to job dissatisfaction. 4. Additional retraining costs for workers.

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Why is quality control important in production?

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Quality control ensures that a good quality product is provided to retailers and customers, affecting the overall quality of the product.

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What methods are used in quality control?

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1. Sampling: Testing a few samples to determine the quality of the whole group. 2. Inspections: Testing every product against quality standards.

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What are the benefits of continuous quality control?

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1. Solves problems in the production process, reducing costs. 2. Encourages workers to deliver good quality products. 3. Basis for compensation decisions. 4. Retailers receive good quality products, increasing their willingness to stock them.