Lesson 41 Flashcards
What is job production?
The process by which a business produces a single product which is unique. It is a one-off order and is usually described as a job
State 3 benefits of job production
1.The business is able to identify the amount of profits that can be generated in advance.
2.Higher prices can be charged since the product is tailor made
- Sales and profits will be higher since products meet customer requirements.
Define Batch Production
Where a business produces products in small groups known as batches.
State an advantage of Batch Production
1.Firms are able to specialize and use division of labor since products are produced in batches, as a result then can benefit from economies of scale.
Define flow production
Where a business produces goods with the aid of a production line.
Raw materials and other forms of input is fed into the line and the value is added as a product passes through the line until the final product is the outcome.
State 3 advantages of Flow Production
1.Division of labor and specialization can be used since work moves to the worker rather than the worker moving from one place to another.
- The benefits of economies of scale can be achieved since products are produced in large quantities
3.Labor costs will be low since the production technique is mostly capital intensive
State 3 disadvantages of Flow Production
- Requires enormous sums of money since capital, equipment and modern technology has to be purchased
2.The business will not be in a position to produce a different product.
3.Th entire production process will come to halt and break down if a worker gets absent
