2.3 Business Operations Flashcards
What is flow production?
Continuous production of identical products which gives scope for high levels of automation.
One advantage of flow production?
Increased productivity
One disadvantage of flow production?
Not able to customise products
What is batch production?
Producing a limited number of identical products
Advantage of batch production?
Able to provide some level of customisation
Disadvantage of batch production?
Machinery needs to be cleaned between batches which reduces productivity
What is job production?
Production of a one-off item for a single customer
Advantage of job production?
Able to charge a premium price because product is bespoke to customer’s needs
Disadvantage of job production?
Increased staff costs due to specialist skills and training
What does the term “business operations” mean?
The section of an organisation concerned with making and delivering what the customer wants
What does productivity mean?
A measure of efficiency, usually output per person in a given time period
Advantage of increased productivity?
Reduced unit costs which leads to increased contribution per unit which leads to increased gross profit
