2.4.1 Production, productivity and efficiency Flashcards
Explain job production
Individual products made one at a time to meet specific customer preferences
Give 2 cons to job production
- High cost
- Time consuming
Give 2 pros to job production
- High quality
- Orders customisable, higher prices
Explain batch production
Produces similar items in groups, stage by stage
Give 2 cons to batch production
- If demand decrease, risk waste of products
- High set up costs in machines
Give 2 pros to batch production
- Reduces unit costs more than job production
- Addresses specific customer needs
Explain flow production
Product created in series of stages on assembly line
Give 2 cons of flow production
- Higher set up costs than job production
- Repetitive work
Give 2 pros of flow production
- Cheaper operating costs than tailoring each Tim
- Structured material flow
Explain cell production
Divides workplace into ‘cells’ - each cell occupies an area of factory floor
What does cell production focus on the production of?
‘product family’ - group of products that requires sequence of similar operations
Define productivity
Output per input per hour
Define production
Volume of output a firm produces in specific amount of time
What is the formula for labour productivity?
output per time period/ inputs per time period or number of employees or hours worked
What is the formula for capital productivity?
Output per time period/ number of machines
