2.3.1 Business Operations

Question 1

What is flow production?

Answer 1

Continuous production of identical products

Question 2

Advantages of flow production?

Answer 2

large scope for high levels of automation
high productivity
low skill recquired

Question 3

Disadvantages of flow production?

Answer 3

expensive startup costs
high maintenance costs

Question 4

What is batch production?

Answer 4

Production of a limited number of items

Question 5

Advantages of batch production?

Answer 5

allows for more variety of products
inventories of part-finished goods can be stored for later

Question 6

Disadvantages of batch production?

Answer 6

decreased productivity when switching batch
making many small batches may be expensive

Question 7

What is job production?

Answer 7

Production of a one-off item for a one-off order

Question 8

Advantages of job production?

Answer 8

High gross profits due to charging premium price
easy to meet bespoke customer needs

Question 9

Disadvantages of job production?

Answer 9

recquires specialist skills
more labour intensive