2.3.1 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
One Advantage of Batch Production
Able to provide some level of customisation
One 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
One Advantage of Job Production
Able to charge a premium price because the product is bespoke to the customer’s needs
One 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
One advantage of Increased Productivity
Reduced unit costs, which leads to increased contribution per unit, which leads to increased gross profit.
