4.1 Production of Goods & Services (Cambridge (CIE) IGCSE Business) Flashcards

Lean production is the minimisation of the resources used in production, focusing on reducing time, materials, labour, and space required while increasing efficiency.

Lean production leads to a competitive advantage by reducing wastage, lowering unit costs, improving output quality, and enabling lower prices than competitors.

Just-in-time (JIT) is a lean production technique where raw materials are ordered and delivered only when needed, reducing the need for on-site storage.

Lean production focuses on waste reduction and efficient organisation, resulting in fewer materials used and less space required for production.

Lean production relies on a small number of trusted suppliers who work closely with the business to ensure timely and reliable delivery of materials.

Kaizen is the process of continuous improvement through making small, ongoing changes to increase productivity and eliminate waste in production.

Two advantages of lean production are lower storage costs and improved product quality.

True.

Lean production encourages teamwork and responsibility, making employees feel valued and more committed.

A key disadvantage of JIT is that it increases reliance on suppliers; if deliveries are delayed or of poor quality, production can stop.

False.

Lean production may reduce bulk buying discounts, as smaller, more frequent orders can increase unit costs.

Raw materials are the basic natural or unprocessed items used to make a product, such as wood, metal, or oil.

Components are individual parts or pieces that are put together to make a finished product.

Work-in-progress refers to partially completed goods that are between stages of production.

Finished goods are items ready to be sold to meet customer demand promptly.

Businesses hold inventory to support smooth operations and avoid disruptions, such as stockouts or production stoppages.

Holding too much inventory can increase storage costs and the risk of damage or obsolescence.

True.

One reason businesses hold inventory is to benefit from bulk purchasing discounts.

If suppliers are unreliable, businesses may keep more inventory as a backup in case of delays or poor-quality deliveries.

Perishable goods like fresh food require smaller inventory levels, while durable goods such as electronics can be stored for longer periods.

False.

High storage costs encourage businesses to reduce the amount of inventory they keep.

Job production is where products are made individually to meet the specific requirements of each customer.

Batch production is when products are produced in groups or batches through the whole production process before a new batch begins.

Flow production is the continuous manufacture of a product on a production line, where materials move through a sequence of workstations.

One major advantage of job production is that products can be customised to match each customer's needs.

False.

Flow production is best for high volumes of standardised products, not highly customised items.

Batch production allows businesses to switch between different products to meet varying customer demands.

A business should consider the type of product, level of demand, available capital and equipment, and skills of the workforce when choosing a method of production.

False.

The method of production can change depending on customer demand, product type, and other factors.

A key disadvantage of job production is that it is usually more expensive and takes longer than other methods.