Lesson 5 Flashcards
define Job production
where only one customised product is made at a time
what are the advantages of job production
it meets the exact wants of the customers so they company can charge a higher price so more revenue and more profit
workers do different tasks so workers will be less bored and so they will become motivated and so higher quality is produced so higher customer satisfaction
what are the disadvantages of job production
only skilled workers are used so higher wages will be paid so more costs so less profit
only few products can be made at a time so less quantity sold so less revenue and less profit
what is meant by batch production
where a quantity of one product is made then another quantity of another product is made
what are the advantages of batch production
it’s a flexible method of production so a wide variety of products are available so customers are satisfied so more profit
workers do different tasks so they are motivated so better quality is produced so ,lire customer satisfaction and so more profit
Allows for purchasing economies of scale where a firm becomes larger so its able to buy more supplies at bulk at lower prices so less cost per unit
what are the disadvantages of batch production
High level of inventory of raw materials are needed so higher rent and therefore higher cost
what is meant by mass / flow production
using machines, large quantities of the same product are made continuously
what are the advantages of mass production
allows for technical economics of scale where a firm gets larger so its able to provide and use more machines so better quality and so more sales so less cost per unit
large quantities can be made quickly do they are always available so more customer satisfaction so more profit
it depends on machines so less workers are needed so less wages and less costs
fewer errors in production as products are identical so more customer satisfaction and so more profit
what are the disadvantages of mass / flow production
there’s a high start up cost for buying machines so less profit
training costs for workers so higher costs
machines might break down so production stops so less customer satisfaction so less revenue and less profit
machines require constant maintenance
what are the different types of production
job production
batch production
mass/flow production
