2.4.1 Methods of prod, productivity and efficiency Flashcards
What are the main types of production
- Flow
- Job
- Batch
- Cell
What is job production
- Where a prod is made specifically for a customer. One off
What are the advantages of job prod
- Higher quality, as more time and resources are put into the production of good
- Specific requirements can be handled
What are some disadvantages of job prod
- Cost of unit high
- Often labour intensive, high labour costs
What is batch production
- Where goods are produced in identical batches until they run out.
What are some advantages of batch prod
- Allows firm to handle unexpected orders
- Saving cost due to buying stock in larger quantities
What are some disadvantages of batch prod
- require business to have higher quanities of raw materials
- Tasks may become repetitive -> lower motivation
What is flow production
- Where a product goes through a continous production line
What are advantages of flow production
- Capital intensive so it can work constantly
- Suitable for manufacture of large quantities
What are some disadvantages of flow
- Long set up time and may be exp to maintain
- Mass produced goods mean lower choice for consumers
What is cell production
- High technology production lines
What is productivity in business
- Measures output per unit of input
What are factors influencing productivity
- Employee motivation
- Education / Training
- Working conditions e.g Flexibility
- Investment in capital equipment
Explain how employee motivation is put in place and how it improves productivity
How it is put in place : Financial incentives linked to output or non financial incentives such as decision making
How it improves productivity : Increasing motivation
Explain how education / training can improve productivity
- Educated staff can make useful contributions to decisions which aim to improve productivity
- Educated staff are more autonomous, which increases productivity
Explain how working conditions eg flexibility can improve productivity
- Flexible work hours can allow firms to respond to demand, maximising output and productivity.
Explain how investment in capital machinery can increase productivity
- Well chosen machinery are less likely to make mistakes than humans
Machinery and technology can operate for a long time without the need for breaks
Where does maximum efficiency occur
MES occurs where the costs of production for a firm are at its lowest
