Business operations (2) Flashcards
What is flow production?
An assembly line produces standardised products
What is job production?
Items that are made individually
What is batch production?
Items that are made in groups
Example of batch production
Bakery
Example of flow production
Assembly line when making cars
Advantages of flow production
- cost of production is low
- identical products can be made very quickly
- effectively cater for a larger customer base
Disadvantages of flow production
- machinery is expensive
- employees may be demotivated and bored
Advantages of batch production
- flexible
- reduced costs through production on a large scale
Disadvantages of batch production
- often downtime between batches where a business rate off production falls
- difficult to anticipate demand
- high product wastage
Advantages of job production
- highly flexible
- high profit margin, low volume
Disadvantages of job production
- requires highly skilled workers so need to pay more for wages
- takes longer
What are BUSINESS OPERATIONS?
is a business function that organizes produces and delivers the goods and services produced or provided by a business
PROBLEMS of technology in production
- COSTS- initial cost of tech can be expensive
- PRODUCTIVITY- workers need training to work safely with robots
- QUALITY- problems may be harder to detect until too late
- FLEXIBILITY- cannot react to changing circumstances
BENEFITS of technology in production
- COSTS- running costs can be reduced, bulk buying materials can save money
- PRODUCTIVITY- robots can work faster so more can be made in less time
- QUALITY- fewer mistakes and defects; more consistent finish
- FLEXIBILTY- can change the output
