2.1 Internal Business - Production Methods Flashcards
What is job production?
When each unit is tailor made for each customer, resulting in a high total cost
e.g. A house being built is designed for the owners so costs a lot and takes time
What is batch production?
When many similar items are produced together. e.g. Baking - all the wholemeal bread is made together, then the white bread etc.
What is the advantage of batch production?
Making in batches is more efficient so it costs less per unit to produce.
What is flow production?
Making a large number of goods and services in a
continuous process e.g. coke bottles.
Costs a lot to buy the equipment but the cost per units very small as you are continuously producing units.
What is Kaizen?
Constant improvement of the production process through coming up with small ways to improve it.
What is Lean Production?
Lean production is a method of production which focuses on the elimination of waste.
What is Total Quality Management?
Where every employee of the business is focussed on improving the production process.
What are economies of scale?
When you produce more, the cost to produce each unit goes down.
What does ‘capacity’ mean?
The maximum amount the business can produce at once.
The closer production is to capacity, the more efficient it is. If the orders are above capacity, then the business is missing out on potential profits.
What is productivity?
The amount of output that is produced for what the business puts in. e.g. the amount of caps made per hour or per kg of materials.
What is the Supply Chain?
All the businesses/people involved in producing a product.
e.g. Suppliers of raw materials, producer, distributor, retailer
