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Worksheets

Resource Management

Total questions: 12

Worksheet time: 7mins

Name
Class
Date
1.
Lean production is best defined as:
a)
a system of frequent improvement
b)
a production method that aims to reduce all forms of waste
c)
a production method dependent on automation
d)
a production method in which zero inventories are held
by the firm
2.
Capacity utilisation is defined as:
a)
the proportion of maximum potential output currently being produced
b)
full-capacity output
c)
maximum output ÷ current output × 100
d)
the level of output that is in balance with demand
3.
What does Just-In-Time production help with?
a)
Creating waste
b)
Taking away jobs
c)
Increasing efficiency
d)
Making products heavier
4.
Lean manufacturing is when ...
a)
We design and make things smaller
b)
We design and make things to be better at assembly
c)
We design and make things to reduce waste
d)
We design and make things that look thin
5.
The purchase-order lead time is the ________.
a)
time between placing an order and its delivery
b)
time between receiving a customer order and producing the products 
c)
) time between receiving a customer order and delivering the items 
d)
time required to correct errors in the defective products 
6.

What is buffer stock?

a)

Stock which is sent just in time.

b)

Stock which gets placed onto the shop floor before it expires.

c)

Stock which does not get sold.

d)

Extra stock which is kept incase of demand.

7.

Which of these isn't a method of improving productivity?

a)

employing more staff

b)

providing pay incentives

c)

investing in up-to-date machinery

d)

training staff

8.

One of the benefits of increasing productivity is:

a)

more workers will be employed

b)

total production will increase with the same number of workers

c)

average costs will stay the same

d)

fewer raw materials will be needed to produce the same level of output

9.

Define Capacity Utilisation

a)

Capacity utilisation is the extent to which the maximum capacity for output that is being used

b)

Capacity utilisation is the minimum capacity for the output that is being used

c)

it is when you use something.

d)

None of the above

10.

In high capacity utilisation the ___________ cost are spread.

a)

low

b)

high

c)

fixed

d)

none

11.

What is one Implications of over-utilisation

a)

Impact on brand image

b)

higher fixed costs per unit

c)

Staff may do too much overtime and so have accidents when tired

d)

Business may need to rationalise

12.
If a firm is operating at 70% of its capacity, which one of the following statements
is true?
a)
Fixed costs are currently lower than they would be at full capacity.
b)
There is excess capacity.
c)
The firm would have to take on more workers to increase production.
d)
The firm is making a profit.