2.4.1 Production, Productivity And Efficiency Flashcards
What is meant by job production
Job production is when one off bespoke products are made to suit customers requirements
Identify one advantage and one disadvantage of job production
Advantage: can charge premium price, highly personal service - strong USP
Disadvantage: low volume of preoducts made, high unit costs
What is meant by batch production
When a business makes a group of products made to one specification at a time
Identify one advantage and one disadvantage of batch production
Advantage: more efficient than job but customer can still get some variety
Dis: less efficient than flow with lower quality job
What is meant by flow production
Flow production is the continuous production of a single standardised product
Identify one advantage and one disadvantage of flow production
Advantage: heavily efficient- lower unit costs, high volumes of products can be mass produced
Dis: every product is identical - price might be lower, more likely competitors producing similar products
What is meant by automation
Automation is when a business uses computers or machines to make products and services instead of labour
What is meant by cell production
De,k production is when workers are grouped into teams often linked with flow production
Identify one advantage and one disadvantage of cell production
Advantage; can improve quality as workers are more motivated when working in teams
Disadvantages: not as quick as flow production, difficult to replace workers
Under what circumstances is job production the most effective method?
Job is most efficient when production volumes are very low
Under what circumstances is batch production the most effective method
Batch production is most efficient when the customer wants a limited range of choice and relatively high volumes
Under what circumstances is flow production the most effective method
Flow is most effective when a product is mass market and cost of production is the most important factor to customers
Under what circumstances is cell production the most effective method
Cell production is most effective when motivation in the production line is an issue or if TQM and lean production methods are being introducted
What is meant by productivity
Productivity is a measure of efficiency which looks at output per unit of input over a time period
What is the formula for calculating productivity
Output / input
How is productivity different from production
Productivity measures the efficiency with which inputs are convert to output. Production just looks at inputs
Identify 3 factors that affect productivity
Training, motivation and access to capital/ tools/ machinery…
How does productivity link to competitiveness
Because if productivity is high, this leads to lower unit costs and can lead to lower prices which improves competitiveness
What is meant by efficiency
Efficiency is about producing lowest unit cost
How does the quality and age of machinery affect efficiency
Quality and age of machinery affects productivity, and this affects unit costs and prices
How do the skills and experience of workers effect efficiency
The higher the skills of the workers, the more productive they will be and the more efficient they will be
How does the level of employee motivation affect efficiency
Highly motivated employees improves productivity which improves efficiency
What does labour intensive production mean and illustrate with an example
Labour intensive production is when the majority of inputs are labour rather than machines
Identify 3 implications to a business if they are labour intensive
Recruitment and selection is more important, motivation and training is important as well as labour turn over
