2.3.1 Business operations Flashcards
What is job production?
One individual product is made at a time by one or a group of workers
What are the advantages of Job production?
High quality and unique products that are tailored to meet customer needs
Higher prices demanded
Workers are motivated, as they are involved in all stages of production
What are the disadvantages of Job production?
Highly skilled workers required, needing training and careful management
Lengthy production process and higher production costs per unit
What is batch production?
Where similar items are grouped and made together (in batches)
What are the characteristics of batch production?
Equipment can be easily altered to make different batches
Worker focus on one area of production process
What are the advantages of batch production?
Variety and choice for customers
Workers become skilled in the production area, less supervision required
More products made at once
Materials required will be purchased in bulk so business can save on costs
What are the disadvantages of batch production?
Demotivated workers as a result of performing the same tasks
A delay in one batch can affect the production of another batch
What is flow production?
Where a larger number of identical products are made on an assembly line
What are the characteristics of flow production?
Production is automated, often with extensive machinery, technology and robotics in large factories
Products can be made in large number in a short space of time
What are the advantages of flow production?
Raw materials are purchases in bulk so business saves in costs
Goods can be produced in large quantities, unit costs are lower
Production can be in process 24/7 without the need for breaks and holidays
Quality improved
What are the disadvantages of flow production?
Expensive to set up and buy factory, machinery ad the technology required
Difficult to adapt production lines
Repetitive work leads to demotivated workers
A breakdown in one of the lines, affects the entire production process
What are all the impacts of technology on production?
Lower costs
Increased productivity
Improved quality
Further flexibility
How are lower costs an impact of technology on production?
In the short term investment is high, machinery and factory set up is expensive
In the long term cost savings will come from lower labour costs, improved quality so less wastage
How is increased productivity an impact of technology on production?
machines and robots work autonomously, unlike workers who need breaks, holidays and time off
How is improved quality an impact of technology on production?
Computer aided design (CAD) is precise and machinery and robots reduce mistakes that can be made by human error
