2.4.1 Production, productivity and efficiency Flashcards
Benefits of Job Production
▪ Quality is high because workers are skilled
▪ Workers are well motivated because work is Varied
▪ Products can be custom made
▪ Production is easy to organise
Drawbacks of Job Production
- High labour costs due to skilled workers
- Production may be slow – long lead times
- A wide range of specialist tools may be needed
- Generally, an expensive method of production
Benefits of Batch Production
- Workers are likely to specialise in one process
- Unit costs are lower because output is higher
- Production is flexible so different orders can be met
- More use of machinery is made
Benefits of Flow Production
- Very low unit costs due to economies of scale
- Output can be produced very quickly
- Modern plant and machines can allow some Flexibility
- Production speed can vary according to demand
Drawbacks of Flow Production
- Products may be too standardized
- High set up costs before production can begin
- Worker motivation can be very low – repetitive tasks
- Breaks in production can be very expensive
Cell Production
The flow production line split into a number of self-contained units. Each cell is responsible for a significant part of the finished product.
Calculate Productivity
(Output/Workers) x100
ways to improve productivity
- Specialisation and the division of labour – allowing workers to concentrate on a limited range of tasks and become proficient
- Education and training – To improve quality, expertise and skill
- Motivation – using incentives (financial or non-financial) to encourage and by setting goals for staff
- Working practices – The way labour is organized and managed
- Labour flexibility – training staff to do more than one job to add flexibility
- Capital productivity – introducing technology and up-to-date equipment
distinction between labor and capital intensive
Labour intensive: Makes more use of labour than machinery in production
Capital intensive: Makes more use of machinery than labour in production