2.4.1 production, productivity and efficiency Flashcards
what is capital intensive?
production methods that make more use of machinery relative to labour.
define capital productivity?
the amount of output each unit of capital (e.g one machine) produces
what is downsizing?
the process of reducing capacity, usually by laying off staff
what is kaizen?
a Japanese term that means continuous improvement
what is labour intensity?
production methods that focus and are more labour than machinery. the higher the labour costs, the more labour intensive it is
what is lean production?
an approach to operations that focuses on the reduction of resources they use.
what is outsourcing?
giving work to subcontracts to reduce costs
what is standardisation?
the process of making something conform to a standard
what is job production?
where items are made individually and each item is finished before the next one is started. e.g hairstylist
pros and cons of job production?
\+ high flexible and bespoke \+ high quality products \+ high profit margins - high unit costs - labour intensive
what is batch production?
where groups of item are made together, each batch is finished before starting the next block of goods. e.g baked goods
pros and cons of batch production?
+ flexible production
+ high economies of scale
- can be expensive
- may have additional costs
what is flow production?
where identical standardised items are produced on an assembly line. e.g bicycle production
pros and cons of flow production?
\+ very low unit costs \+ high levels of productivity \+ quick and cheap - huge set up costs - low motivation of workers
what is cell production?
when a single product will go through a number of stages
