Chapter 17
Production of goods and
services
- Explaining the difference between production
and productivity
- Explaining the benefits of increased efficiency
and how to increase efficiency
Productivity – is the output measured against
the inputs used to create a product or service
and is a measure of efficiency
Labour productivity – is the amount of work
done or the number of units produced by a
worker in each time
Lean production – aims to use fewer inputs,
cut down on waste and therefore increase
efficiency
Inventory – refers to the raw materials, semi-
processed goods and finished goods held by a
business at any one time
Just-in-time (JIT) – is a production method
that involves reducing or virtually eliminating the
, need to hold inventories of raw materials or
unsold inventories of the finished product
Kaizen – is a Japanese ter meaning ‘continuous
improvement’ through the elimination of waste
Job production – is where a single product is
made at a time, usually to a customer’s specific
requirement
Batch production – is where a quantity of
one product is made, then a quantity of another
item will be produced
Flow production – is where large quantities
of a product are produced in a continuous
process
Production process
Inputs
(land, Output
Productio
capital, (goods and
n process
enterprise, services
labour)
Production of goods and
services
- Explaining the difference between production
and productivity
- Explaining the benefits of increased efficiency
and how to increase efficiency
Productivity – is the output measured against
the inputs used to create a product or service
and is a measure of efficiency
Labour productivity – is the amount of work
done or the number of units produced by a
worker in each time
Lean production – aims to use fewer inputs,
cut down on waste and therefore increase
efficiency
Inventory – refers to the raw materials, semi-
processed goods and finished goods held by a
business at any one time
Just-in-time (JIT) – is a production method
that involves reducing or virtually eliminating the
, need to hold inventories of raw materials or
unsold inventories of the finished product
Kaizen – is a Japanese ter meaning ‘continuous
improvement’ through the elimination of waste
Job production – is where a single product is
made at a time, usually to a customer’s specific
requirement
Batch production – is where a quantity of
one product is made, then a quantity of another
item will be produced
Flow production – is where large quantities
of a product are produced in a continuous
process
Production process
Inputs
(land, Output
Productio
capital, (goods and
n process
enterprise, services
labour)
