5.1 Operations Management and Production Methods Flashcards
What is Job Production?
Making one product at a time
What are the advantages and disadvantages of Job Production?
Advantages:
Quality is likely to be high as price so time taken is less important for the product produced to please a single customer
Profit prices are high and this can mean high profits
More interest as each product produced is different so therefore the work can be more interesting and more motivating
Specification. Customers receive a product designed to meet their own specifications and are likely to be more satisfied
Disadvantages:
Time. Production is likely to take much longer for unique items
Costs. With time consuming methods and highly skilled workers costs of production are likely to be high
Labour Intensive. Products are likely to be handmade and not use a lot of machinery, increasing costs
What is Batch Production?
Making groups of individual products
What are the advantages and disadvantages of Batch Production?
Advantages:
Product Range - A business can produce a large variety of different products to meet the needs of its consumers which can help increase sales and profit
Quality Control - It’s much easier as if there is a quality problem with a product then the fault can be traced to a single batch or batches. This means most of the products produced may not be affected
Disadvantages:
Unit Cost - These are likely to be higher than mass production as raw materials will be brought in smaller quantities and time will be lost getting the production line ready for a different batch. This can mean higher prices
What is Flow/Mass Production?
Making lots of products continuously
How does the ICT/Technology improve the efficiency of the business?
It increases the level of production as machines work faster and longer than workers
The internet allows small businesses to stay open for 24 hours a day and sell to the rest of the world
What are the advantages and disadvantages of using technology in a business?
Advantage: Reduces costs (less workers and more accurate)
Disadvantage:
High initial costs need to be maintained or upgraded
