Chapter 10 Flashcards
Specialisation?
Work is divided into separate tasks or jobs that allow workers to become skilled at one of them
Flow production
Large-scale production where each stage of production is carried out one of the other continuously on a production line.
Division of labour?
Breaking a job down into small pestis tasks that can be done quickly by workers of machines specialised in this one task
Advantages of flow production?
Low cost of each unit produced due to high levels of output and efficiency.
High automation with computer-controlled machinery will result in a very consistent high standards of quality.
Less need to hold Stocks like batch production, production is continuous so it is not necessary to hold stocks of completed items for a long time
Disadvantages of flow production
Set up costs of buying equipment are high especially if using a computer controlled robots.
Production problems can be costly and can affect the whole production line. Work motivation will be low as workers are doing the same continuous job. Basic standardised product cannot be changed about costly and and time-consuming changes in machinery
Explain lean production ?
A production approach the aim is to use fewer resources by using them more efficiently this involves resources such as space and materials
Kaizen ?
Continuous improvement in both encouraging workers to make suggestions for small frequent improvements
Just-in-time manufacturing?
Ordering supplies so that they arrive just when they are needed and making good is only when customers have ordered them.
It involves arranging the suppliers that will supply orders are only bought to the business on the day required. Producing to order not for stock This means producing products when they are ordered
Advantages of just-in-time manufacturing
Improved efficiency of cash flow by reducing the time in which suppliers are paid and customers pay
Improves relationship with the supplier
Capital that was used to pay for Stocks can now be used in other parts of the business
Disadvantages of just-in-time manufacturing
Some customers may want their order the same day that they placed it.
Small orders rather than making one large delivery of supplies can be costly.
If there’s any hold-up in transport systems or problems this could lead to output being stopped
Features of lean design
Saving time in developing and launching new products means that firms can charge high prices before competitors coming to the market.
Lean production involves teams of designers working on different parts of the products simultaneously and bringing together at the end.
Computer aided design programs can help do a lot of the work that would have previously been done by building models and prototypes this saves time
Economies of scale ?
The reasons why production costs of each unit decrease as a business expands
Diseconomies of scale?
The reasons why the production costs of each unit increase as a business expense
The main reasons for economies of scale ?
Financial economies
Technical economies
Specialist managers
Bulk buying or purchasing economies
The main reasons for diseconomies of scale?
Poor motivation
Poor communication
Poor coordination
