2.2.1 Introduction to production Flashcards
What is resource management?
The central business function of creating a product/service and delivering it to the costumer
What are the 5 steps in resource management?
- Design
- Establishing the supply chain
- Working with suppliers
- Managing quality
- Achieving high levels of efficiency
What is production?
Productivity as output per input
“the action of making or manufacturing from components or raw materials or the process of being manufactured”
Example of production?
Turning plastic, metals, paint and other raw materials into products
What are the 3 main methods of production?
- Job production: making 1 unique product from start to finish
- Batch production: making batches of similar products
- Flow production: continuous production of identical items
Examples of job production?
Wedding cakes, a dentist visit, house extension, ship, helicopter, channel tunnel, a bespoke dress
Benefits of job production
- Meets specific needs
- Unique
- Quality
- Very motivated workers
- Very simple production organisation
Drawbacks/limitations of job production
- Costly
- Time consuming
- Skilled labour + craftsmen are expensive
- High selling costs
- Workers may be less motivated with repetitive work
Factors of batch production
Goods are made in batches and can be switched over to make something different on the same production line
Examples of batch production
- 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
Benefits of batch production
- Lower costs
- Flexibility to produce a variety of different product variations
- Effective for small production runs are needed
- Ideal for custom or seasonal orders
Drawbacks/limitations of batch production
- The production system equipment uses a lot of space
- Wasting resources
Features of Flow production
- Large quantities are produced
- Simplified or standard product
- Large stocks or raw materials + work in progress
- Semi skilled staff used to operate machinery
Examples of flow production
Production os often continuous and is suited to high demand, mass market products eg. cars, choc bars and electronic goods
Benefits of flow production
- 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
Drawbacks/limitations of flow production
- High set up costs to buy the factory + machinery
- Low motivation of staff
- Break downs + lost production
What is JIT?
Just in time (order as you need)
What are the factors of cell production?
The production of items is organised into groups + then teams are set at workstations + see a product through to completion
Benefits of job production
- 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
Drawbacks/limitations of job production
- Huge investment in machinery for each cell
What is capital intensive production?
The money that has been put into the business
- lots of machinery, farming equipment
What is labour production?
The productivity per worker
- lots of workers
What is productivity?
The measure of the efficiency of a person, a machine, factory or process of production
Efficiency
Businesses should always strive to drive down costs, reduce waste and ensure that more of their revenue is claimed as profit
