Methods of production

Question 1

What is job production ?

Answer 1

Each job is unique an meets a customers specific needs , labour intensive and costly

Question 2

Advantages of job production ?

Answer 2

Meets customers precise needs
Easier to add value
Higher quality of product produced

Question 3

Negatives of job production ?

Answer 3

No chance of economies of scale
Higher costs of production
Skilled labour is expensive
Slower production process

Question 4

What is batch production ?

Answer 4

Products are made in specific groups or amounts , time varies and there are variations between each batch

Question 5

Advantages of batch production ?

Answer 5

Can produce larger quantities lowering costs
Faster and can gain economies of scale depending on batch size
Flexible to meet customer needs

Question 6

What are some disadvantages of batch production ?

Answer 6

Down time to change settings for the batch reduces output

More stock needs to be held / storage is costly

Lower skill needed - less motivating - less variety of work

Question 7

What is flow production ?

Answer 7

Products made in vast amounts also known as mass production

Question 8

Advantages of flow production ?

Answer 8

Can gain economies of scale
Cheaper labour can operate on it
Can produce larger quantities

Question 9

What are some disadvantages of flow production ?

Answer 9

Expensive machinery
If they break down then it halts all production / affects output and commitments
High maintenance costs
repetitive work = lower motivation

Question 10

What are some examples of stock ?

Answer 10

Raw materials ( used to create the good )

Finished goods ( completed goods awaiting delivery )

Work in progress ( part finished goods that will be used in the next process )

Question 11

What are the benefits of holding stock ?

Answer 11

Buffer stock to meet late deliveries causes no disruption in the manufacturing process

Satisfy demand , must be able to meet demand when customers want it

Coping with changes in demand to maximise profit

Question 12

What are some negatives of holding stock ?

Answer 12

Storage costs
Opportunity costs
Security to guard stock
Insurance costs

Question 13

What is the equation for average stock level ?

Answer 13

Max stock level + Min stock level / 2

Question 14

How do some businesses control stock level ?

Answer 14

They get suppliers to hold stock for them

They use JIT , LIFO , FIFO

Question 15

What is electronic point of sale ( EPOS ) ?

Answer 15

A method of monitoring stock
Stock when sold is scanned
When reorder level is reached , an automatic order is placed

Question 16

What is cell production ?

Answer 16

Production teams working together - each team does a certain part

They are given autonomy of their work

Question 17

Advantages of cell production ?

Answer 17

Quality is higher as they are more proud of their work ( sense of responsibility )

Employees work at their own pace so less mistakes are made

Job rotation is possible which motivates

Question 18

What are some negatives of cell production ?

Answer 18

Expensive to do due to duplication

Question 19

What is divisions of labour ( specialisation ) ?

Answer 19

Jobs broken down into separate tasks

Question 20

What is an advantage of specialisation ?

Answer 20

Once they leant it , they do it quicker with less mistakes

Cheaper to train someone for one task

All automated which reduces costs and increases production

Question 21

What is the impact of divisions of labour on stakeholders ?

Answer 21

Increased productivity = more profit = more dividends

Employees are more bored due to repetitive tasks

Reduced price = cheaper for consumers

Hr may find increased workload effects of demotivated workforce

Question 22

What does the decision to change the production process depend upon ?

Answer 22

The nature of the product
Cost of machinery
Cost of redundancies
Avaliability of technology
Financial status