A293 - Production

Question 1

What are the five stages of production?

Answer 1

1) Research and development
2) Input of resources
3) Methods of production
4) Outputs
5) Feedback

Question 2

Define the four methods of production

Answer 2

1) Job - production of individual products using skilled labour
2) Batch - Produces one type of product for a while then switches
3) Process - a series of automated processes controlled by a computer
4) Flow - assembly line of continuous output

Question 3

What are the advantages of job production? (2)

Answer 3

High quality

Meet individual needs

Question 4

What are the disadvantages of job production? (2)

Answer 4

High costs

Skilled labour is expensive and hard to find

Question 5

What are the advantages of batch production? (3)

Answer 5

Needs of customers met
Meet specific orders = no storing = cheaper
Possible automation

Question 6

What are the disadvantages of batch production? (3)

Answer 6

Time to switch between products
Keep materials stored
Repetitive tasks

Question 7

What are the advantages of process production? (3)

Answer 7

Large output
Automated = cheaper - computer controlled
Consistent quality

Question 8

What are the disadvantages of process production? (2)

Answer 8

Expensive initially

Problem stops whole process

Question 9

What are the advantages of flow production? (3)

Answer 9

Large output - economies of scale
Machinery = cheaper
Variations can be programmed

Question 10

What are the disadvantages of flow production? (4)

Answer 10

Low quality
Expensive - materials stored
Problem stops whole process
Repetitive

Question 11

What is specialisation of labour?

Answer 11

When jobs are broken down into smaller tasks e.g. managers become experts, making decisions quickly

Question 12

What are the advantages of specialisation? (3)

Answer 12

Less training time
Efficient workers - speed + quality
Less mistakes - lower costs

Question 13

What are the disadvantages of specialisation? (2)

Answer 13

Boring

Demotivating - productivity + quality suffer

Question 14

Is batch production the best for Holden?

Answer 14

Batch - produce range - widen target market
Job - good quality (important in competition) but expensive
Flow - saves money but lower quality

Question 15

What are the advantages of batch production for Holden? (5)

Answer 15

Less storage
Possibility of JIT
Flexibility to meet orders
Possibility of customisation
Specialisation / job rotation

Question 16

How could Holden increase productivity? (4)

Answer 16

Give workers:
 Training
 Better equipment
 Incentives
 Control over work

Question 17

How could Holden reduce production costs? (3)

Answer 17

Relocate (fig 3)
Cheaper materials
Invest in machinery

Question 18

What is added value?

Answer 18

The process of making something worth more through production. It is the difference between selling price and cost of materials

Question 19

How do customers benefit from added value?

Answer 19

Don’t have to make their own products

Question 20

How do businesses benefit from added value?

Answer 20

Profit - can charge more

Increases competitiveness - better value for money + USP

Question 21

Why is added value important for Holden?

Answer 21

Competitive market - customers shop around for best value - essential for profit, which can be used to diversify product range etc

Question 22

What are the advantages of using technology in production? (4)

Answer 22

Speed - efficient
Cheaper - less labour
24/7 or flexible
Higher quality

Question 23

What are the disadvantages of using technology in production? (4)

Answer 23

Increases unemployment
More training for employees - time + cost
Expensive to maintain + repair
Expensive to set up

Question 24

What is lean production?

Answer 24

A production system which helps to minimise waste, whilst ensuring quality. Main method = JIT, when materials are delivered just as needed

Question 25

What are the advantages of using JIT? (3)

Answer 25

No storage costs
Improved productivity - faster
Money isn’t wasted on changing stock suddenly

Question 26

What are the disadvantages of using JIT? (3)

Answer 26

Reliability on suppliers
No purchasing economies of scale
Can’t cope with unexpected demand

Question 27

What could Holden consider to increase efficiency?

Answer 27

Automation - business and ethical implications

JIT - on some materials

Question 28

When is quality control especially important?

Answer 28

Competitive environment - customers want high quality

Question 29

What is traditional quality control?

Answer 29

Checking quality at end - could waste time + materials

Question 30

What is TQM?

Answer 30

Total quality management

Everyone is responsible for quality when it enters + exits their area - minimises waste

Question 31

What is kaizen?

Answer 31

Responsibility of every worker to see how their process could be more efficient

Question 32

What are the benefits of quality? (3)

Answer 32

Minimises costs
Helps gain competitive advantage
Enables higher retail price

Question 33

What are economies of scale?

Answer 33

Fall in average costs due to fixed costs being spread over larger output. Occurs when business increases scale of production

Question 34

What are internal economies of scale?

Answer 34

Purchasing
Managerial - attract better staff
Technical - better machines

Question 35

What are external economies of scale?

Answer 35

Marketing - transport

Question 36

When do dis-economies of scale occur?

Answer 36

When a business becomes too big - communication less efficient, decisions take longer, workers demotivated (feel insignificant)

Question 37

How could Holden benefit from economies of scale?

Answer 37

Purchasing, marketing, managerial - important for competition as lower costs
Specialist workers = better quality + efficiency