2.4.1. Production, Productivity & Efficiency Flashcards
Production
The process that changes raw materials or components into a finished product
Job production
To produce 1 item at a time
(e.g. wedding cakes, helicopter)
It’s a labour intensive method of production that requires skilled workers
Item stays still , workers move around it
Advantages & Disadvantages of Job Production
+ high quality
+ workers are motivated because work is varied
+ products can be custom made
+ production is easy to organise
- high labour costs
- production may be slow
- expensive
- wide range of equipment needed
Batch Production
Used when a business wants to make more than 1 item at a time as demand for product is regular
Production is divided into no of operations , operations takes place on whole batch before next operation
Makes high volumes of product
Goods are made in batches
Advantages and disadvantages of batch production
+ work is done quick and well
+ lower unit costs
+ production is flexible
+ more use of machinery is made
- complex machinery is required
- if batches are small costs are high
- less motivation of workers due to less variety in the job
- planning and coordination is required
- money may be tied up in process