2.3 Production Methods- Operations

Question 1

Job production

Answer 1

Job production is a method of production where each individual ‘job’ is completed in its entirety before another job is completed. Examples include, boat buying, house building clothing, road construction.

Question 2

Advantages of job production

Answer 2

One off orders can be designed to meet the requirements of an individual customer thus allowing a higher ‘premium’ price to be charged.
Product specifications

Question 3

Disadvantages to job production

Answer 3

Unit production costs can be high as it is difficult to gain economies of scale. Labour costs may be higher as workers may require highly developed skills.
Production may take a long time as jobs have to be set up separately and may require individual design.
Products require lots of equipment in order to produce a wide range of different products.

Question 4

Batch production

Answer 4

Products are produced in groups, with each ‘batch’ moving to next stage in the production process only when all products in the group. Products in each batch are the same, but the specification can be changed in between each batch.

Question 5

Advantages of batch production

Answer 5

There is still some flexibility in that individual batch specifications ca be changed to suit customer requirements.
Workers can specialise in one stage of production, which may reduce costs.
There is increased scope for the use of machinery in the process.

Question 6

Disadvantages of batch production

Answer 6

Small batched can mean higher production cost per unit.
Delays can occur if machines need to be stopped, cleaned and/or reset in between each batch run.
It can be difficult to ensure consistency of product quality from batch and batch.

Question 7

Flow production

Answer 7

Products pass through several stages of a production line with parts being added or developed at each stage. In flow production there is a continuous output of identical products.

Question 8

Advantages of flow production

Answer 8

Each worker will carry out only small specialist tasks and will become very efficient in their work.
The use of machinery means that rates of production are very fast which brings down average cost of production per unit.
There is scope for a fully automated production process.
Reductions in unit costs of production through economies of scale means that lower prices can be charged.

Question 9

Disadvantages of flow production

Answer 9

Start up costs are very high with investment in buying, installing and maintaining equipment.
A standardised product ma not meet requirements of all customers, some of whom may prefer to pay a higher price in return for something more suitable.
If there are any technical difficulties, then bottlenecks may occur with a pile up of partly finished goods.
Workers can become unmotivated and results in absenteeism due to the work being resistive and never seeing the finished product.

Question 10

Capital intensive production

Answer 10

Is where the production process relies more on machinery and other capital equipment relative to human input. Used fo large scale items like cars.

Question 11

Capital intensive production is used when?

Answer 11

The supply of labour is limited, the production process is routine and repetitive, the cost of the capital is relatively cheap compared to labour, the use of machinery improves the quality and accuracy of production, the use of machinery improves efficiency and consistency of output.

Question 12

Mechanisation

Answer 12

Where humans use machinery to help them in the production process, often to replace the physical, muscular part of the process. Human judgement is still required.

Question 13

Automation

Answer 13

A step further mechanisation, where control systems and information technology are used to manage production, reducing or replacing human intervention. Automation removes the need for human judgement.

Question 14

Advantages to capital-intensive production

Answer 14

Machinery can operate 24/7.
Higher volume of goods can be produced.
Quality of output is standardised and consistent.
Removes the cancer or human error.
Machines can do work that would be dangerous or hazardous to humans.

Question 15

Disadvantages of capital-intensive production

Answer 15

Large initial outlay to purchase machines.
Cost of maintaining and repairing equipment can be high.
Only suitable for standardised production process-difficult to adapt or change.
Production time is lost if machines break down.
Worker motivation is low as they are de-skilled. Can also lead to redundancies.

Question 16

Labour-intensive production

Answer 16

Is where is a business uses a larger proportion of human input than machinery to complete the production process.

Question 17

Labour intensive production is used when?

Answer 17

The cost of labour is relatively cheaper than the cost of machinery, the production process require specific skills, the use of machinery would be impractical due to lack of space or mobility, the production process relies on the ability of humans to think, act on initiative and problem solve, the production process requires flexibility.

Question 18

Advantages of labour-intensive production

Answer 18

Additional flexibility due to human skills-can make one-off items. More responsive to change.
Lower startup costs than capital intensive production.
The use of human judgement is needed or can improve the process.

Question 19

Disadvantages of labour-intensive production

Answer 19

A skilled workforce can be expensive to recruit, pay and train.
Business cannot take advantage of economies of scale.
Staff illness or absence can impact on the production process.
Additional quality control measures may be required due to human error.
Can be less efficient than capital-intensive production.