2.2.1 Introduction to production

Question 1

What is resource management?

Answer 1

The central business function of creating a product/service and delivering it to the costumer

Question 2

What are the 5 steps in resource management?

Answer 2

• Design
• Establishing the supply chain
• Working with suppliers
• Managing quality
• Achieving high levels of efficiency

Question 3

What is production?

Answer 3

Productivity as output per input

“the action of making or manufacturing from components or raw materials or the process of being manufactured”

Question 4

Example of production?

Answer 4

Turning plastic, metals, paint and other raw materials into products

Question 5

What are the 3 main methods of production?

Answer 5

• Job production: making 1 unique product from start to finish
• Batch production: making batches of similar products
• Flow production: continuous production of identical items

Question 6

Examples of job production?

Answer 6

Wedding cakes, a dentist visit, house extension, ship, helicopter, channel tunnel, a bespoke dress

Question 7

Benefits of job production

Answer 7

• Meets specific needs
• Unique
• Quality
• Very motivated workers
• Very simple production organisation

Question 8

Drawbacks/limitations of job production

Answer 8

• Costly
• Time consuming
• Skilled labour + craftsmen are expensive
• High selling costs
• Workers may be less motivated with repetitive work

Question 9

Factors of batch production

Answer 9

Goods are made in batches and can be switched over to make something different on the same production line

Question 10

Examples of batch production

Answer 10

• Bread factory’s also make crumpets and tortillas

- Furniture makers may produce a run of one design of chair before switching to make something else

Question 11

Benefits of batch production

Answer 11

• Lower costs
• Flexibility to produce a variety of different product variations
• Effective for small production runs are needed
• Ideal for custom or seasonal orders

Question 12

Drawbacks/limitations of batch production

Answer 12

• The production system equipment uses a lot of space

- Wasting resources

Question 13

Features of Flow production

Answer 13

• Large quantities are produced
• Simplified or standard product
• Large stocks or raw materials + work in progress
• Semi skilled staff used to operate machinery

Question 14

Examples of flow production

Answer 14

Production os often continuous and is suited to high demand, mass market products eg. cars, choc bars and electronic goods

Question 15

Benefits of flow production

Answer 15

• Average costs are lower because higher volumes being made (economic of scale can be achieved)
• Automated and computerised production means improved quality and more complex designs and can be made in shorter times

Question 16

Drawbacks/limitations of flow production

Answer 16

• High set up costs to buy the factory + machinery
• Low motivation of staff
• Break downs + lost production

Question 17

What is JIT?

Answer 17

Just in time (order as you need)

Question 18

What are the factors of cell production?

Answer 18

The production of items is organised into groups + then teams are set at workstations + see a product through to completion

Question 19

Benefits of job production

Answer 19

• Minimal handling of the product reduces cost
• Motivating for workers to see a completed product
• Lead times are reduced
• Less time moving from place to place

Question 20

Drawbacks/limitations of job production

Answer 20

• Huge investment in machinery for each cell

Question 21

What is capital intensive production?

Answer 21

The money that has been put into the business

- lots of machinery, farming equipment

Question 22

What is labour production?

Answer 22

The productivity per worker

- lots of workers

Question 23

What is productivity?

Answer 23

The measure of the efficiency of a person, a machine, factory or process of production

Question 24

Efficiency

Answer 24

Businesses should always strive to drive down costs, reduce waste and ensure that more of their revenue is claimed as profit

Question 25

Quality of inputs

Answer 25

Quality of inputs in the production process: faulty parts in an assembly line can stop the line

Question 26

Labour shift

Answer 26

Labour shift organisation of workers, having the right number of staff on at peak times will increase productivity, stretched staff are demotivated by being overloaded

Question 27

New technology

Answer 27

Investment in new technology, robots can work 24/7 without rest breaks + so will increase productivity levels

Question 28

How can productivity make a business more competitive?

Answer 28

• It can produce goods more economically efficient and then charge more competitive prices
• For example: business that introduces new machinery- produce more in less time
• Business will enjoy economies of scale+ charge competitive prices

Question 29

Benefits of efficient production

Answer 29

• Competitive prices
• Average for item is reduced
• High profits due to lower production costs

Question 30

Drawbacks/limitations of efficient production

Answer 30

• Has to be a capacity in the market: to reduce prices

- Quality may suffer when producing too many items too quickly

Question 31

What methods can be used by businesses to improve their overall efficiencies?

Answer 31

• Buying machinery
• Specialisation
• Division of labour
• lean production (reducing wastage)
• Cell production (working as a team)
• Improved employee training: time consuming
• Better quality materials (costly)
• Improved motivation
• Better management of staff + process