Chapter 2- Production

Question 1

What are the four methods of production

Answer 1

Job, flow, batch and just in time

Question 2

What is job production
What are the advantages (6)
What are the disadvantages (3)

Answer 2

A single product is produced from start to finish to the consumers exact wants and needs
Unique products, higher job satisfaction levels, quality is better, based on customers order, the job isn’t boring, takes advantage of economies of sale
Expensive, labour intensive, time consuming

Question 3

What is batch production
What are the advantages (5)
What are the disadvantages (4)

Answer 3

Produces a number of similar products
Workers may specialise on some degree, labour costs are reduced so final product price is lower, machinery may be used, production is faster, takes advantages of sales of economy
The work is less interesting and repetitive, takes time to change over batches, more space is required for working and storage, larger stocks of materials must be kept

Question 4

What is flow production
What are the advantages (6)
What are the disadvantages (6)

Answer 4

Also known as mass production or assembly line production, a product is passed along an assemble line from a raw material to be ready to be sold.
Uses machines so less labour intensive, of moderate quality, final price is cheaper because of low labour costs, assembly lines can run continuously, production is fast, takes full advantage of sales of economy
Work is repetitive, no skill needed, need storage for raw materials and products, employee motivation is low, products are identical, loss of traditional skills

Question 5

What is just in time production
What are the advantages (5)
What are the disadvantages (4)

Answer 5

Uses stocks that are delivered to the production line just in time to be used
Capital is used very effectively, do not need storage for raw materials, no waste by having an excess inventory, finished product should be cheaper for the consumer to buy
Very dependent on having an efficient ordering system, production could be halted if the wrong goods are delivered at the last moment, puts pressure on suppliers, company and suppliers must work closely together

Question 6

What is CAD

Answer 6

Computer aided design, which assists in the designing and the drafting of the product

Question 7

What is CAM

Answer 7

Computer aided manufacture, use of computer to assist in the actual manufacturing of the product, to control, monitor and adjust the tools and machinery

Question 8

What are examples of technology in services (5)

Answer 8

Store card 
Online banking 
Self service checkout 
Mobile phone, email, video conferencing etc. 
Internet

Question 9

What are the advantages of technology

Answer 9

Faster, more accurate than people doing the job, cheaper to run, quality, motivation, increased production, higher customer satisfaction

Question 10

What are the disadvantages of technology

Answer 10

Retraining costs
Possible redundancies
Capital costs

Question 11

What is quality assurance

What are the advantages of it (3)

Answer 11

Trying to prevent faults happening, right the first time, zero defects, every stage of the production process is checked for quality
Employee motivation is higher because they are involved in quality, reduced wasted money due to reduced amount of wastage, reduces the amount of faulty products

Question 12

What are the four quality standards

Answer 12

Customer service excellence standard
ISO 9001
EFQM
investors in people

Question 13

What is Customer service excellence standard
Who was it developed by
Who is it rewarded to
What is it based on (getting the reward)

Answer 13

Developed by the government to make sure plc companies run efficiently and effectively
Public companies, highest quality, public is the top priority
Delivery of service, is it on time, level of information available to customer, professionalism, staff attitude, understanding of the customers experience, constant measurement of the service

Question 14

What is ISO 9001

What does it focus on

Answer 14

International standard organisation

How it trains staff, checks products and services are correct, handles mistakes, improves products or services

Question 15

What is EFQM
What is its aim
What does their criteria include

Answer 15

European foundation for quality management
To encourage European businesses to improve their standards
Leadership, people, customer results

Question 16

What does investors in people do

Answer 16

Focuses on the people who work in the business

Makes sure they get proper training

Question 17

What are the advantages of quality assurance

Answer 17

Improves efficiency, productivity, brand image

Reduces errors and costs

Question 18

Give example of the factors influencing location

Answer 18

Land, labour, raw materials, services, proximity to markets, tradition, personal choice, competition, government, car parking, transport, technology, communications, housing, safety, employment

Question 19

Why might … be an influencing factor for the location of a business
Land
Labour
Raw materials

Answer 19

Competition, central, planning restrictions, room for expansion

High unemployment= wages are lower, another reasons eg. High tech industries close to Cambridge university

Mines, quarries, forestry, easy access

Question 20

Why might ... be an influencing factor for the location of a business 
Services 
Competition 
Transport 
Government

Answer 20

Electricity, water, waste disposal, telephone, drainage, therefore cheaper and less time consuming
Business will not want a lot of competition
To be able to obtain their raw materials, airports, English Channel
The government will offer advanced factories at reduced rates, grants and tax relief, industrial estates, attract foreign investment if we set up in an unemployed area

Question 21

What are some of the social and environmental considerations for a location

Answer 21

Employment
Quality of life and beauty of landscape
Global warming and pollution
Increased traffic

Question 22

Why should we consider these social and environmental considerations when picking a location for a business
Employment
Global warming and pollution
Increased traffic

Answer 22

Increased income means greater income for local shops and promotes better standard of living in the area
Noise and litter
Creates congestion, increased likelihood of accidents, causes damages to road surfaces and pollution from fuel emissions from vehicles

Question 23

What are the employers responsibilities

Answer 23

To provide a safe working environment
Provide facilities for employees
Carry out regular cleaning and waste removal
Provide health and safety training

Question 24

What are the responsibilities of employees

Answer 24

Take care of each other’s health and safety
Wear protective clothing
Be conscious of health and safety issues
Take care of their own health and safety
Use all equipment carefully

Question 25

What are the costs of health and safety legislation

Answer 25

Increased purchasing costs for clothing and equipment, carry out risk assessments, provide specialised training

Question 26

What are the benefits of health and safety legislation

Answer 26

Reduce staff absentee rates as a result of lower accident rates
Increased staff motivation
Reduced risk of employees making compensation claims against them