2.4.1 - Production, Productivity and Efficiency Flashcards
1
Q
What is job production?
A
- Manufacturers produce one product at a time when ordered by the consumer
2
Q
Advantages of job production
A
- High quality product
- Motivated and highly skilled workers
- Customised products can be produced
- Huge profit margins
3
Q
Disadvantages of job production
A
- Slow production
- High labour costs
4
Q
What is Flow Production?
A
Continuous manufacturing of standardised products
5
Q
Advantages of Flow production
A
- Low unit costs
- Rapid productions
- Usually highly automated
6
Q
Disadvantages of Flow production
A
- Difficult to customise
- Expensive start up and equipment
7
Q
What is batch production?
A
Groups of the same product are produced as a batch
8
Q
Advantages of Batch production
A
- Workers can specialise products
- Different flavours
- Produces more than job
9
Q
Disadvantages of batch production
A
- Decrease in productivity between batches
- Require careful coordination
- Completed products need to be stored
10
Q
What is productivity?
A
Output per worker so measure how much each worker produces over a period of time
11
Q
Productivity formula
A
Total output per time period / no. of employees
12
Q
3 factors increasing productivity
A
- Motivation
- Financial incentives
- Workers in decision making - Training
- Investment in capital equipment
- Machinery means more products and improve quality
13
Q
What is efficiency?
A
The ability of a business to use its production resources as cost-effectively as possible
14
Q
Efficiency formula
A
Total costs / total output
15
Q
4 ways of improving efficiency
A
- Relocation
- Cheaper or smaller locations can reduce fixed costs - Investing in new tech
- Increase output and quality - Lean production
- Involves reduction of all types of wastage - Outsourcing
- Tasks given to other specialist businesses to start at low costs
