3.1 Production Processes Flashcards
What is production management?
Production management refers to all of the steps in the transformation of a product
What is production?
The proses of turning raw materials, energy and labor into a good or service
Includes procurement
What is job production?
Give examples?
A product that is made to meet the exact requirements of a customer
Tailor
Cruise ship maker
Personal trainers
Restaurants
Advantages of job production?
You can charge higher prices
Employees may be more motivated if they are more skilled and getting payed more
Disadvantages of job production?
Costs more to make
Smaller market (less people who will buy your products normally)
You can only make a few at a time
What is flow production?
A type of production where products are continuously being made and items are always moving between different stages of the production proses
What are the advantages of flow production?
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…
Disadvantages of flow production?
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
What is the efficiency of a business?
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
What may effect efficiency?
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
What is lean production?
This type of production aims to decrease the amount of waste
A reduce in waste normally reduces cost which can lead to more profit
What are the advantages of lean production?
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.
What are the disadvantages of lean production?
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
What is Kaizen?
Japanese for “continues improvements”
An approach which aims to let employees make suggestions about how to improve the business.
What are the advantages of Kaizen?
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
What are the disadvantages of Kaizen?
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
What is JIT production?
Just In Time production is when a business orders stock to come when they need it. They have little buffer stock
What are the advantages of JIT production?
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
What are the disadvantages of JIT production?
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
For lean production to work what must employees be?
Reliable
Motivated - to check there work
Want to help the business
What does it mean is a job is very labor intensive?
A ,or of labor is required to do a job
What does it mean if a job is very capital intensive?
A lot of capital (raw materials) are needed to produce something
What is JIC production?
Just in case production is when a business have extra stock in case something goes wrong.
They will have a lot of buffer stock
What are the advantages of JIC production?
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)
What are the disadvantages of JIC production
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
What is specilisation?
When an employee becomes used to doing 1 job and therefore gets better at it becoming more productive
