Edexcel-Production, productivity and efficiency 2.4* Flashcards
Production
Transformation of resources
Productivity Formula
Output/Input
Job production
One product at a time as requested by customer.
Job production advantages
High quality product
Motivated and highly skilled workers
Customised products can be produced.
Job production disadvantages
Production is slow
labour costs are high
Flow production
Continuous production of standardised products.
Flow production advantages
Low unit costs
Rapid production
Usually highly automated
Flow production disadvantages
Customisation is difficult
Capital equipment can be expensive
Batch production
Producing a set number of identical items.
Batch production advantages
Workers can specialise
Production can take place as previous batch start running out.
Batch production disadvantages
Careful coordination to avoid shortages
Money tied up in stock as need to be stored
Cell production
Involves workers being organised into multi-skilled teams, with each team responsible for a particular part of the production process.
Cell production advantages
Efficient as workers share skills and expertise
Motivation high as working in a team
Cell production disadvantages
Extensive reorganisation of production processes
Weaker workers may reduce Teams efficiency
Why is productivity important?
Reduce cost per unit
Improve competiveness
Increased profit margin
