Methods of production Flashcards
When is Job production used?
When a firm manufactures individual, unique products
If they’re product (job production) is made in a factory, what will they need to do?
Need to install new equipment in its factory each time it makes a new product.
What are the products like in job production?
Have a unique design based upon customer’s specification.
What do these products (job production) often require?
Highly skilled labour
lots of workers are needed but relatively little financial investment
What are the disadvantages of job production?
Expensive and take a long time
What is the advantage of job production?
high quality
What are the products like in Flow production?
all products are identical and the aim is to produce many as possible along an assembly line
How do you make flow production efficient?
production has to be continuous with no stoppages - many flow production factories operate 24 hours a day with workers rotating in shifts.
What is the aim for flow production?
gain from economies of scale, so have a low average unit cost to allow competitive prices
What does flow production need?
highly capital-intensive (needs a lot of money) may also require a lot of space for product storage.
What is flow product used for?
mass-market products.
e.g. chocolate bars, mobile phones, televisions
