2.4.1 Productivity Flashcards
Define productivity
The effectiveness of productive effort, as measured in terms of the rate of output per unit.
Define production?
The action of making or manufacturing from components or raw materials.
What are the 4 methods of production?
1.) Flow production
2.) Cell production
3.) Batch production
4.) Job production
What are the factors of job production?
-One individual product is made at a time.
-Products made for a specialised client/customer.
-High quality = higher prices charged.
-Production may be slow with hard labour.
-E.g. Baking a children’s birthday cake, Building a ship.
What are the advantages of job production?
-Skilled workers = high quality.
-Workers more motivated more varied.
-Products can be custom made.
What are the disadvantages of job production?
-Skilled workers = ^ labour costs.
-Slow production.
-Specialist tools may be needed.
-Expensive method of production.
What is batch production?
Batch production is a method that involves completing one operation at a time on all units before performing the next.
What are the advantages of batch production?
-Use of machinery.
-Output ^ —> unit costs lower.
-Production is flexible.
What are the disadvantages of batch production?
-Complex machinery may be needed.
-Careful planning is needed.
-Less motivation due to specialisation.
-If batches are small = costs will still be ^.
What is flow production?
Large scale production of a standard product, each operation on a unit is performed continuously, in a production line.
Used when the products are easily formable.
What are the advantages of flow production?
-Low unit costs due to EOS.
-Output produced quickly.
-Production speed can vary according to demand.
What are the disadvantages of flow production?
-Too standardised.
-Huge set-up costs.
-Motivation may be low to the repetitive nature.
-Breaks in production may be very expensive.
What is cell production?
Cell production involves producing a family of products in a small self-contained unit within a factory.
What are the advantages of cell production?
-Workers become multi-skilled + more adaptable to future needs of a business.
-Variety of work, team work + more responsibility —> ^ motivation.
-Quality ^ as each cell has ownership for ‘quality’ on it’s area.
What are the disadvantages of cell production?
-May not allow firms to use their machinery as intensively as in flow production + output will be lower than mass production.
-Greater investment is required in new management + control processes, such as stock ordering.
What are the 2 ways of improving productivity?
1.) Comfortable settings
2.) Pay rises
What are the 6 factors influencing productivity?
1.) Specialisation and the division of labour
2.) Education and training
3.) Motivation of workers
4.) Working practices
5.) Labour flexibility
6.) Capital productivity
What is the link between productivity and competitiveness?
-An ^ productivity means more output with the same amount of resources.
-Costs will be lower = lower prices can be charged in comparison to rivals.
-This makes businesses more competitive in the market place + more customers, ^ market share.
-If UK businesses become competitive in overseas markets, exports will ^ and so standard of living in the UK may increase.
What is efficiency?
Efficiency is about making the best possible use of all a businesses’ resources.
