16. Production, Productivity And Efficency Flashcards
What is production?
When resources eg. Raw materials are changed into products
What is job production?
Involves the production of a single product at a time, it’s used when orders for products are small eg. ‘One-offs’
Production is organized so the one ‘job’ can be produced at a time.
Small scale: child’s birthday cake
Large scale: building a ship
- labour intensive as number of units produced is small
- skilled workers or specialists
What are the advantages of job production?
Quality is high as workers are skilled
Well motivated workers due to varied work
Custom made products and production is easy to organize
What are the disadvantages of job production?
High labour costs due to skilled workers
Production may be slow, long lead time
Wide range of specialist tools may be needed
Generally expensive
What is batch production?
Production is divided into a number of operations
One operation is carried out on all the products in the batch then the batch may move on to the next operation
Products can be produced in very large or very small batches depending on the level of demand
For when the demand of a product is higher eg. Furniture
New technology is being introduced to make batch production more efficient
What are the advantages of batch production?
Production is flexible since different orders can be met
Workers are likely to specialize in one process
Unit costs lower since output is higher
What are the disadvantages of batch production?
If batches are small, costs will still be high
More complex machinery may be needed
Careful planning and coordination is needed
Less motivation as workers specialize
What is flow production?
Involves mass producing a standard product on a production line
The product goes under a series of operations in sequence on a continuous basis until a finished product comes out the end of the line
Repetitive flow production eg. Metal cans
What are the features of flow production ?
Production of large quantities
Semi-skilled workforce, specializing in one operation only
Large stocks of raw materials and components
What are the advantages of flow production ?
JIT manufacturing can be used in flow production to reduce costs of holding stocks and improving efficiency
Very low unit costs due to economies of scale
Output can be produced very quickly -> Modern machines provide some flexibility
Production speed can vary according to demand
What are the disadvantages of flow production?
Huge set up costs before production can begin
Products may be too standardized
Workers motivation can be very low - repetitive costs
Breaks in production can be very expensive
What is cell production?
Production / work place is divided into cells
Each cell occupies an area on the factory floor, focuses on the production of a product family
What are the advantages of cell production ?
Production flexibility is improved
Less work in progress
Lead time (time between delivery and order) is cut
Movement of resources and handling time is reduced
What is productivity?
The amount of output that can be produced
