Chapter 37: Production, productivity and efficiency Flashcards
What is production?
When resoucres, such as raw mateirals or components, ar ehcanged into ‘products’
What are the factors of producction
C.E.L.L
Capital
Enterprise
Land
Labour
What is the primary, secondary and tertiary industry?
Primary: concerned with providing natural raw materials for conversion into commodities and products for the consumer.
Secondary: converts the raw materials provided by primary industry into commodities and products for the consumer; manufacturing industry.
Tertiary: the part of a country’s economy concerned with the provision of services.
What is job production?
Involves the prodcution of a single product at a time. it is used when order for products are small, sucha s ‘one-offs’.
3 advantages of job production
Quality is high becasue works are skilled.
Workers are well motiated becasue work is varied.
Products are custome made
3 disadvantages of job production
High labour costs due to skilled workers
Production may be slow
Generally an expensive method of production
What is batch production?
May be used when demand for a frim’s product or service is regular ratehr than a ‘one off’
3 advantages of batch production
Workers are likely to specialise in one process
Unit costs are lower because output is higher
More use made out of machinery
3 disadvantges of batch production
More complex machinery may be needed
Careful planning and co-ordination is needed
Less motivation because workers specialise
What is flow production?
This is when production is organsied so that differnet operations cna be carried out, one after the other in a continuous sequence.
5 main features of low production
The production of large quantites
A simplified product
A semi- skilled workforce, specialisng in one operation only
Large amounts of machinery and equipment
Large stocks of raw materials and components
3 advantages of flow production
Very low unit costs
Output can be produced very quickly
Production speed can vary according to demand
3 disadvantages of flow production
Products may be too standardised
Huge set- up costs before prodcution can begin
worker motivation can be very low- repetitive
What is cell production?
An appraoch that involves dividing the workplace into differnet ‘cells’. Each cell occcupies a differnt area on the factory floor and focusses on the prodcution of a ‘product family’
Some advantages of cell manufacturing are:
Lead times are cut
Less work in progress
Teamworking is encouraging
