3.1 Production Processes

Question 1

What is production management?

Answer 1

Production management refers to all of the steps in the transformation of a product

Question 2

What is production?

Answer 2

The proses of turning raw materials, energy and labor into a good or service

Includes procurement

Question 3

What is job production?

Give examples?

Answer 3

A product that is made to meet the exact requirements of a customer

Tailor

Cruise ship maker

Personal trainers

Restaurants

Question 4

Advantages of job production?

Answer 4

You can charge higher prices

Employees may be more motivated if they are more skilled and getting payed more

Question 5

Disadvantages of job production?

Answer 5

Costs more to make

Smaller market (less people who will buy your products normally)

You can only make a few at a time

Question 6

What is flow production?

Answer 6

A type of production where products are continuously being made and items are always moving between different stages of the production proses

Question 7

What are the advantages of flow production?

Answer 7

You can produce large amounts of items per hour. Normally have lower unit costs …

You can have specialisation. Employees who do the same job and become specialised work faster which means they will be more productive…

Question 8

Disadvantages of flow production?

Answer 8

Initial costs are high

If employees have a boarding job they may get demotivated which may lead to an decrease in staff retention and production

Of demand for the item decreases you may not be able to sell the items

No flexibility

Question 9

What is the efficiency of a business?

Answer 9

How well a business uses it’s resource to produce items. Amount of waste time…

An efficient business will have a low unit costs which may lead to more profit

Question 10

What may effect efficiency?

Answer 10

How well employees are managed.

If they are motivated then they may produce more

How good the suppliers are. If they are more reliable.

Using up to date machinery and technology

Type of production - flow production is a lot more efficient than lean production

Question 11

What is lean production?

Answer 11

This type of production aims to decrease the amount of waste

A reduce in waste normally reduces cost which can lead to more profit

Question 12

What are the advantages of lean production?

Answer 12

Decreased waste normally means decreased costs meaning it may lead to more profit

You may be able to advertise as an environmental friendly business as you produce little waste.

Question 13

What are the disadvantages of lean production?

Answer 13

If production exceeds demand then there may be more waste

Any faulty products will need to be re called and replaced which costs money for the business

Question 14

What is Kaizen?

Answer 14

Japanese for “continues improvements”

An approach which aims to let employees make suggestions about how to improve the business.

Question 15

What are the advantages of Kaizen?

Answer 15

The business may improve

The business will be getting continues feedback from it’s employees

Employees may be more motivated because they think there ideas are being heard. This may lead to a more motivated employees which may lead to a more productive employee

Question 16

What are the disadvantages of Kaizen?

Answer 16

Employees may not feel confident enuf to share there ideas

Managers may become less motivated as they feel like they Ron’s have as much authority

Meetings to discuss changes may take time and this is time where the employees arn’t working

Question 17

What is JIT production?

Answer 17

Just In Time production is when a business orders stock to come when they need it. They have little buffer stock

Question 18

What are the advantages of JIT production?

Answer 18

You don’t need to spend much money on renting land for storing stock

Lest waste from stock going out of date

Stock is less likely to be lost or damaged

Stock is going to be a better quality of you use it sooner

Question 19

What are the disadvantages of JIT production?

Answer 19

If your suppliers arn’t reliable then they may be late with delivery’s which may mean that you won’t be making money if you have no stock.

You arn’t able to react to a sudden surge in command

You are unlikely to benefit much from bulk buying economy’s of scale if you are buying low amounts of stock frequently

Question 20

For lean production to work what must employees be?

Answer 20

Reliable

Motivated - to check there work

Want to help the business

Question 21

What does it mean is a job is very labor intensive?

Answer 21

A ,or of labor is required to do a job

Question 22

What does it mean if a job is very capital intensive?

Answer 22

A lot of capital (raw materials) are needed to produce something

Question 23

What is JIC production?

Answer 23

Just in case production is when a business have extra stock in case something goes wrong.

They will have a lot of buffer stock

Question 24

What are the advantages of JIC production?

Answer 24

You don’t have to wait if suppliers are unreliable

Increases reputation as your products are always available

Reduces chance of running out of stock

You benefit from economy’s of scale (bulk buying)

Question 25

What are the disadvantages of JIC production

Answer 25

You have extra fixed costs of land for storage

Products may go off or loose quality if they are sitting in a wear house

You have high amounts of potential profit in wear houses. No actual profit

You may need to sell at discounts because there was a drop in demand after you bought a lot of stock

Question 26

What is specilisation?

Answer 26

When an employee becomes used to doing 1 job and therefore gets better at it becoming more productive