Booklet 7 : Productivity and Investment Flashcards
Define job production, and state three advantages and three disadvantages? (8)
Job production is a term used when the business produces a one-off product for a particular customer, meeting the specific requirements they have asked (2)
Advantages
1. Can charge a high price - products are often professionally tailored meaning they can charge higher prices
2. It allows greater flexibility - this means that the customer can ask for what they want with a wider variety of design
3. Easy to motivate workers - the workers build the product from start to finish, the work makes them feel involved and committed it is also not repetitive
Disadvantages
1. Increases cost of production - there are no opportunities to benefit from economies of scale
2. Requires specialist labour - it is hard to find a suitable employee, also it will be expensive to employ and train this person
3. The production process can be slow
Define batch production, and state three advantages and three disadvantages of this method of production (8)
Batch production is the production of batches of similar products in large quantities, usually occurring when there is a number of identical products (2)
Advantages
1. Economies of scale
2. Can produce products fast as the machinery used is advanced
3. Reduces the need for a skilled and flexible workforce
Disadvantages
1. Products cannot be customised to meet the needs of the client
2. More storage space is required to accommodate stock
3. Less variety of work which can demotivate staff
Define flow production and state three advantages and three disadvantages of this method? (8)
Flow production is a process of passing partly produced products to another in a regular flow, each stage adds value to a product and is assembled usually on an assembly line (2)
Advantages
1. Products are identical meaning they can be produced quickly
2. Wide use of machinery - allows the firm to benefit from technical economies of scale and machinery can work overnight and weekends.
3. Robots can be used to reduce the need of employees and to pay wages
Disadvantages
1. Loss of flexibility - the products are all the same, with so much machinery it is difficult to alter the process
2. Very expensive to set up - the installation of robots and automated systems
3. Given the repetitive nature of the work it can be repetitive and demotivate workers
Define cell production, state three advantages and three disadvantages of this type of production (8)
Cell production is when the flow production line is divided into a number of cell units , where each team is responsible for the finished product. (2)
Advantages
1. Greater motivation - workers are trained for all areas, tasks will be rotated which gives the work more variety
2. Workers are adaptable - they are multi-skilled and are adaptable for the needs of the business
3. Quality improvements- each cell has “ownership” for the quality on its area
Disadvantages
1. Cell production doesn’t allow the same use of machinery as flow production
2. The company may have to invest in new materials, handling and ordering systems for cell production
3. Staff need to be trained which is a time-consuming process
Define lean production, and state three advantages and three disadvantages of this method of production (8)
Lean production is a method of production that attempts to eliminate waste while maintaining quality and minimise activities that do not add value (2)
Advantages
1. Increased productivity from reduction in waste therefore greater efficiency
2. Lean production speeds up the production process with the right quantities being produced
3. Multi-skilled staff with each having increased participation increasing motivation
Disadvantages
1. It will take time and money for the business to run the lean method of production
2. It requires an atmosphere of close co-operation and mutual trust between the workforce and managers, it requires all stakeholders to work towards the goal of reducing waste
3. May require additional training for all employees to learn new processes
Define productivity (2)
Productivity describes the measurement of efficiency of production in the business. Factors include : HR, finance and production methods (2)
How does machinery affect productivity in relation to new machinery and maintenance of machinery (4)
New machinery - firms willing to spend up to date money on machinery allows them to improve the quality of their products, keep up with competitors and speed up production processes (2)
Maintenance of machinery - failing to maintain machinery will lead to lower levels of productivity and the business may lose money. A business makes machinery work faster by buying new machinery, service the machinery and train employees how to use the machinery (2)
How do employees affect productivity in relation to skills/training and motivation (4)
Skills and training - ensuring the employees are well trained by attending courses in order to improve productivity, Ensure they also are well trained to use and operate up-to-date machinery (2)
Levels of Motivation - they can increase motivation by financial or non-financial methods which improves productivity, they can improve productivity by being paid more, being given a promotion, extra training or perks (2)
Define investment and state one reason a business would undertake this (2)
The commitment of resources to a project in order to secure a more profitable return (1) to increase capacity and benefit from economies of scale (1)
Define innovation and state one reason why a business would undertake this (2)
Innovation is the business process that yields something new e.g a product or service that’s not currently available (1) to ensure a product is produced in the most effective way possible (1)
Define R&D and state one reason a business would undertake this (2)
This is the activities and enhancements that the business undergoes to try benefit the product sold to consumers (1) to ensure there are technical advances in the business (1)
Name three actions that may impact innovation in a business (3)
- The availability of resources to craft a new product
- The level of freedom managers exercise in their work routines
- The amount of suitably qualified and experienced teams available
Name three internal factors influencing innovation and R&D (3)
- Culture of the business - some businesses are always looking for new ways to meet customers wants and needs
- Human Resources - the quality and capacity of the workforce is to be considered, a motivated workforce can carry out their own research independently
Name three external factors influencing innovation and R&D (3)
- The Economy - recession can affect the need for innovation or R&D, poor market conditions can influence innovation
- Competitor actions - R&D can be a response to competitors gaining a differentiation advantage
- Technological change - rapid technological change may shorten product life cycles leading to greater opportunities for innovation
