Production of Goods and Services Quiz

What is productivity?

• The amount of goods produced in a day

• A measure of the efficiency of inputs used in the production process

• The number of employees in a firm

• The cost of raw materials

What is the formula for measuring labour productivity?

• Output / Inputs

• Inputs / Output

• Output + Inputs

• Output - Inputs

What is the purpose of holding buffer inventory?

• To satisfy customer demand at all times during lead time

• To slow down production

• To increase wastage of resources

• To reduce production costs

What is lean production?

• Techniques to reduce wastage and increase efficiency

• Producing goods in large quantities

• Using outdated technology

• Holding excessive inventory

What is one of the seven types of wastage in lean production?

• Quality control

• Overproduction

• Underproduction

• Efficiency

What is the advantage of job production?

• Quick production of goods

• Low labor costs

• High output of standardized products

• Product meets exact customer requirements

What is the disadvantage of flow production?

• Low job satisfaction and motivation for workers

• Flexible way of working

• Low cost of setting up

• Quick production of goods

What affects the choice of production method according to the text?

• Nature of the product, size of the market, nature of demand, size of the business

• Number of employees, location of the firm, type of machinery, color of the product

• Weather conditions, employee preferences, marketing strategy, company logo

• Raw material availability, employee salaries, office furniture, company history

What is automation in production?

• Handmade products without any technology

• Manual labor without any machinery

• Using outdated technology

• Equipment controlled by computers to carry out mechanical processes

What is the purpose of CAD in production?

• No design process involved

• Manual drawing of designs

• Computer software that draws items being designed more quickly

• Designing by hand