Business Operations Flashcards
what are the three methods of production?
job production
batch production
flow/mass production
what is job production?
Job production is the method in which a product is supplied to meet the exact requirement of a customer and are individually produced and finished before starting a new product.
what is batch production?
batch production is the method in which groups of items move together through the different stages of the production process.
what is flow production
Flow production is the method in which an item moves from one stage of the process to another, in the large scale of identical products.
what are the advantages of job production?
higher prices can be charged - the product is unique and so the business can earn greater profits.
workers will be highly motivated as the work varies and they have the satisfaction of being able to see the product from start to finish. - a more content workforce leads to lower employee turnover.
A business will have greater links with the customer in order to meet their needs.
skills of the workers provide good quality products.
what are the disadvantages of job production?
As each product is different the production process is more expensive for each good produced - each item will have to be bought in smaller quantities.
higher wages will need to be paid as skilled workers are required.
The business may need to change the tools being used as each product is different.
it will be more expensive so sales may be few.
longer waiting times as the customer will have to wait for their individually made good.
what are the advantages of batch production?
More goods are produced than in job production so -
* producers can benefit from economies of scale
* producers will be able to sell more goods.
Machinery can be used in producing different goods.
Workers can be employed and trained to perform set tasks.
prices are lower than for goods produced in job production.
More affordable - higher sales.
Consumers have a range of products to choose from.
what are the disadvantages of batch production?
resetting of machinery is difficult , time and money are used between production of batches.
Materials and finished goods will need to be stored - this will be expensive.
Workers can be demotivated when completing the same tasks every day - higher employee turnover.
What is quality?
quality is meeting the minimum standard set in order to meets the need and expectations of a customer.
