A293 - Production Flashcards
What are the five stages of production?
1) Research and development
2) Input of resources
3) Methods of production
4) Outputs
5) Feedback
Define the four methods of production
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
What are the advantages of job production? (2)
High quality
Meet individual needs
What are the disadvantages of job production? (2)
High costs
Skilled labour is expensive and hard to find
What are the advantages of batch production? (3)
Needs of customers met
Meet specific orders = no storing = cheaper
Possible automation
What are the disadvantages of batch production? (3)
Time to switch between products
Keep materials stored
Repetitive tasks
What are the advantages of process production? (3)
Large output
Automated = cheaper - computer controlled
Consistent quality
What are the disadvantages of process production? (2)
Expensive initially
Problem stops whole process
What are the advantages of flow production? (3)
Large output - economies of scale
Machinery = cheaper
Variations can be programmed
What are the disadvantages of flow production? (4)
Low quality
Expensive - materials stored
Problem stops whole process
Repetitive
What is specialisation of labour?
When jobs are broken down into smaller tasks e.g. managers become experts, making decisions quickly
What are the advantages of specialisation? (3)
Less training time
Efficient workers - speed + quality
Less mistakes - lower costs
What are the disadvantages of specialisation? (2)
Boring
Demotivating - productivity + quality suffer
Is batch production the best for Holden?
Batch - produce range - widen target market
Job - good quality (important in competition) but expensive
Flow - saves money but lower quality
What are the advantages of batch production for Holden? (5)
Less storage Possibility of JIT Flexibility to meet orders Possibility of customisation Specialisation / job rotation
How could Holden increase productivity? (4)
Give workers: Training Better equipment Incentives Control over work
How could Holden reduce production costs? (3)
Relocate (fig 3)
Cheaper materials
Invest in machinery
What is added value?
The process of making something worth more through production. It is the difference between selling price and cost of materials
How do customers benefit from added value?
Don’t have to make their own products
How do businesses benefit from added value?
Profit - can charge more
Increases competitiveness - better value for money + USP
Why is added value important for Holden?
Competitive market - customers shop around for best value - essential for profit, which can be used to diversify product range etc
What are the advantages of using technology in production? (4)
Speed - efficient
Cheaper - less labour
24/7 or flexible
Higher quality
What are the disadvantages of using technology in production? (4)
Increases unemployment
More training for employees - time + cost
Expensive to maintain + repair
Expensive to set up
What is lean production?
A production system which helps to minimise waste, whilst ensuring quality. Main method = JIT, when materials are delivered just as needed
What are the advantages of using JIT? (3)
No storage costs
Improved productivity - faster
Money isn’t wasted on changing stock suddenly
What are the disadvantages of using JIT? (3)
Reliability on suppliers
No purchasing economies of scale
Can’t cope with unexpected demand
What could Holden consider to increase efficiency?
Automation - business and ethical implications
JIT - on some materials
When is quality control especially important?
Competitive environment - customers want high quality
What is traditional quality control?
Checking quality at end - could waste time + materials
What is TQM?
Total quality management
Everyone is responsible for quality when it enters + exits their area - minimises waste
What is kaizen?
Responsibility of every worker to see how their process could be more efficient
What are the benefits of quality? (3)
Minimises costs
Helps gain competitive advantage
Enables higher retail price
What are economies of scale?
Fall in average costs due to fixed costs being spread over larger output. Occurs when business increases scale of production
What are internal economies of scale?
Purchasing
Managerial - attract better staff
Technical - better machines
What are external economies of scale?
Marketing - transport
When do dis-economies of scale occur?
When a business becomes too big - communication less efficient, decisions take longer, workers demotivated (feel insignificant)
How could Holden benefit from economies of scale?
Purchasing, marketing, managerial - important for competition as lower costs
Specialist workers = better quality + efficiency
