Operations Managament: Production of goods and services quiz

Goods are tangible products that are used to satisfy customer's needs and wants. Services are intangible products that are used to satisfy customer's needs and wants.

Production is the provision of a product or service to satisfy consumer wants and needs.

The main difference between production and productivity is that production entails effective management of resources used to provide goods and services, as well as the processes required to achieve this. Productivity, on the other hand, is a method of measuring production.

The benefits of increasing efficiency are as follows: *Reduced inputs needed for the same output level.• Lower costs per unit (average cost).• Fewer workers may be needed, possibly leading to lower wage costs.• Higher wages might now be paid to workers, which increases motivation. Efficiency can be increased in the following ways: improving employee motivation, improving quality assurance to reduce waste, improving inventory control, using automation, training employees to become more efficient, and introducing new technology.

Combine the factors of production efficiently, in appropriate proportions, in order to keep costs low and increase profits.

Business hold inventories in order to promptly meet demand as well as maintain production.

Job production and batch production. Job production is a form of production where products are made specifically to the customer's order. Batch production is a form of production where similar products are made in batches or blocks.