| | | |Answer | |1 |Sumanth’s 5-pronged Approach |a |Productivity Improvement | |2 |ABC Analysis |b |Pareto’s | |3 |Continuous Improvement |c |Kaizen | |4 |Non-value adding |d |Law Waste | |5 |Sumanth’s total productivity Model |e |Productivity Measurement |
2. Choose the correct answer from amongst the options given. 5 i. Lead time variability and demand variability are considered as zero in
(A) MRP Model (B) EOQ Model (A) ABC Model (D) None of these
ii. Items which have moved at least once in a period of 2 years are known as
(A) Non-moving (B) Slow moving (C) Both of them
iii. A level at which stocks are just sufficient to meet demands during one normal lead time is known as
(A) Re-order Level (B) Danger Level (C) Safety Stock
iv. If orders are placed once a month to meet an annual demand of 6000 units, then the average inventory would be
a. 200 b. 250 c. 300 d. 500
v. Production cost per unit can be reduced by
(a). producing more with increased inputs.
(b). producing more with same inputs.
(c). eliminating idle time.
(d). minimizing resource waste.
4. State the benefits of improvement in productivity to various stakeholders associated with a business entity.
Ans. Productivity refers to the physical relation between the quality produced (output) and the quantity of resource used in the course of production (input)
Productivity (P) = Output (O)
Output implies production while input means land, labour, capital, management etc. Productivity measures the efficiency of the production system. Higher productivity means producing more from a given amount of input or producing a given amount with minimum level of inputs. In other words the more the output from one worker or one machine (or a piece of equipment) per day per shift, the higher is the productivity. Higher productivity is not to be taken in sense of 132 higher workloads or faster machines alone but it is always elimination of waste of all type of labour (time and skill) machine time, capital, and material management etc.
Productivity = Output per unit of input
Productivity and production are two different terms. Productivity is a relative term indicating the ratio between total output and the total inputs used therein on the other hand production is an absolute concept, which refers to the volume of output. The volume of production may increase but productivity may decline due to inefficient use of resource. Efficient use of input may increase productivity but the volume of production may not increase. Production refers to the end result of production system whereas productivity reflects its efficiency.
Benefits derived from higher productivity are as follows:
1. It helps to cut down cost per unit and thereby improve the profits. 2. Gains from productivity can be transferred to the consumers in from of lower priced products or better quality products. 3. These gains can also be shared with workers or employees by paying them at higher rate. 4. A more productive entrepreneur can have better chances to exploit export opportunities. 5. It would generate more employment opportunities.
6. High productivity enables sales at lower prices and hence helps in expansion of markets. 7. It helps in a more rapid building up of productive equipments. 8. More capital available for investments...