Gr12 IB Business - 5.3 Lean Production

This type of production aims to maximise efficiency and minimise waste. 

• Just in Case

• Kaizen

• Just in Time

• Job production

Answer explanation

Kaizen focuses on continuous improvement through a process of maximising efficiency and minimising waste.  

Which production process has the limitation that it may restrict a company’s ability to react to massive, unexpected orders?

• Just in Case

• Kaizen

• Just in Time

• Job production

Answer explanation

Just-in-time minimises or removes the need for holding stocks, saving money and saving space. However, one of the limitations is that the business may struggle to react to meet any massive unexpected orders in a timely manner.  

Which production philosophy is based on waste reduction and efficiency?

• Quality production

• Batch production

• Lean production

• Job production

Answer explanation

Lean production was first introduced in Japan’s Toyota factories as a means to minimise waste and maximise efficiency.  

Identify the method of production of a customised good or service that aims to cater to the specific requirements of individual customers. 

• Mass production

• Job production

• Batch production

• Lean production

Answer explanation

Job production is the method that aims to produce unique products or services specific to the needs of individual customers.

The break-even point for Joi’s photography studio is 30 bookings but she is averaging 55 bookings per month. Therefore, Joi’s margin of safety is bookings. 

• 25

• 30

• 55

• 85

Answer explanation

The workings for this question are as follows:

                Margin of safety = output − break-even point

                Margin of safety = 55 − 30

Therefore, Joi’s margin of safety is 25 bookings.

Saul’s bakery sells bread at $5 per loaf. The combined cost of ingredients and packaging is $1. Therefore, Saul’s contribution per unit is $ (a)   ?

Which model evaluates business activity by taking economic, social and ecological factors into account, rather than just profits?

• SWOT

• STEEPLE analysis

• Triple bottom line

• Ansoff matrix

Answer explanation

The triple bottom line model focuses on the broader context of sustainable business practices including people, planet and profit rather than just profits.

Key Term

This means using resources more productively, in order to generate more output.

• Waste

• Efficiency

• Quality Control

• Sustainability

What does TQM stand for?

• The quality model

• Total quality management

• Technique for quality marketing

• Types of qualitative management