2.4.1 Production, productivity and efficiency Flashcards
What is job production and an example?
1
- Making one-off items to suit each customers individual requirements
- Painting
What are the benefits of job production?
3
- Workers = ^motivated due to diff work (satisfaction)
- ^Quality (^skilled workers)
- Charge ^price
What are the drawbacks of job production?
3
- ^Quality labour = ^wage (labour intensive)
- Lack EOS, ^costs per unit
- Slow production
What is batch production?
1
- Make group of products to 1 spec at a time, allows some variation
What are the benefits of batch production?
3
- Diversifies demand
- Capital intensive = consistent (replicate, less faults), customer satis
- Division of labour (employee specialise) = ^efficient, >costs, >prices
What are the drawbacks of batch production?
3
- Replicates products, prototype error = rest have, ^wastage, landfill tax
- Machinery adjusted between batches = >prod
- > Variety of jobs, demotivates staff
What is flow production and an example?
1
- Continuous production of single, standardised product
- Can of beans
What are the benefits of flow production?
3
- EOS, low unit costs
- ^Volumes, allow ^demand in mass markets to be met
- Capital intensive ^efficient
What are the drawbacks of flow production?
3
- Damage cash flow (^setup costs)
- > Motivation, rep tasks
- > Price charged (mass market product)
What is cell production?
1
- Organising workers into small groups (cells) produce range of diff products
What are the benefits of cell production?
3
- ^Motivation (variety of work, team working)
- Adjust products to customer needs (^price)
- ^Comm, avoid confusion
What are the drawbacks of cell production?
3
- Labour intensive = ^costs
- > Volumes
- Rivalry between cells, conflict arises
What is productivity?
1
- Output per worker
How do you calculate productivity?
1
- Outputs
Inputs per time period
What are the factors that affect productivity?
3
- Quality/age of machinery
- Skill/experience of workers
- Employee motivation
What are the benefits of an increase in productivity?
1
- If wages unchanged, >labour costs per unit, work faster
- >Selling price or ^prof margins
What is efficiency?
1
- Extent resources used in process generate output without wastage