3.1 Production Processes Flashcards
What is production?
Production is the process of changing inputs, such as raw materials, energy and labour services, into goods and services that can be sold.
What is production management?
Production Management refers to all the activities in managing the transformation process.
What is job production?
Job production is a method of production in which a product is supplied to meet the exact requirements of a customer.
What are examples of job production? (Give 4)
Garden design
Hairdressers
Personal trainers
Tailors
Why might a business use JOB production? (3 marks)
Job production is used by businesses to gain an advantage over larger rivals. For example, a small tailoring business cannot expect to supply clothing as cheaply as a large company. However, the business may be able to justify its higher prices because it supplies a personal service.
Explain one disadvantage of JOB production? (2marks)
Job production is an expensive method of production as each product is different and may involve changes in the production process. Unless the business is sure that it can charge high prices, it may find it difficult to make a profit.
What is flow production?
Flow production occurs when an item moves continuously from one stage of the process to another.
Give two advantages of FLOW production? (4 marks)
Flow production allows firms to produce huge volumes of output which enables them to sell in large numbers (assuming the demand is there). This means that a business can maximise its revenue because it has lots of products ready for its customers.
Also, flow production is relatively cheap per unit because the costs are spread over millions of units of production, so the cost of each one is actually low.
Give two disadvantages of flow production?
- The initial costs are high. A production line can cost millions of pounds and the business may not be able to afford this.
- It is risky. Businesses need to invest a lot of money to be able to produce on a large scale. If the demand falls, the expensive equipment will not be used efficiently.
What does it mean to be efficient in production?
To use fewer inputs than competitors to produce the same product. An efficient business will most likely have a lower cost per unit.
What does the efficiency of a business depend on?
- Whether the employees are motivated to produce more.
- Whether the business has good-quality equipment.
- Whether the products are produced using flow production (cheap and quick) or if they are handmade (expensive and time consuming).
What is lean production?
An approach to production that aims to minimise waste.
What is the affect of a business reducing its waste?
It can reduce costs due to being more efficient.
What are 2 examples of waste in a business?
- If productions exceeds demand—>items are thrown away.
- Wasted time is inefficient and costs money.
Describe what just-in-time production is.
Just-in-time production is when raw materials are brought in, then made into products and then delivered to customers.
