Methods of production Flashcards
What is job production ?
Each job is unique an meets a customers specific needs , labour intensive and costly
Advantages of job production ?
Meets customers precise needs
Easier to add value
Higher quality of product produced
Negatives of job production ?
No chance of economies of scale
Higher costs of production
Skilled labour is expensive
Slower production process
What is batch production ?
Products are made in specific groups or amounts , time varies and there are variations between each batch
Advantages of batch production ?
Can produce larger quantities lowering costs
Faster and can gain economies of scale depending on batch size
Flexible to meet customer needs
What are some disadvantages of batch production ?
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
What is flow production ?
Products made in vast amounts also known as mass production
Advantages of flow production ?
Can gain economies of scale
Cheaper labour can operate on it
Can produce larger quantities
What are some disadvantages of flow production ?
Expensive machinery
If they break down then it halts all production / affects output and commitments
High maintenance costs
repetitive work = lower motivation
What are some examples of stock ?
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 )
What are the benefits of holding stock ?
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
What are some negatives of holding stock ?
Storage costs
Opportunity costs
Security to guard stock
Insurance costs
What is the equation for average stock level ?
Max stock level + Min stock level / 2
How do some businesses control stock level ?
They get suppliers to hold stock for them
They use JIT , LIFO , FIFO
What is electronic point of sale ( EPOS ) ?
A method of monitoring stock
Stock when sold is scanned
When reorder level is reached , an automatic order is placed
What is cell production ?
Production teams working together - each team does a certain part
They are given autonomy of their work
Advantages of cell production ?
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
What are some negatives of cell production ?
Expensive to do due to duplication
What is divisions of labour ( specialisation ) ?
Jobs broken down into separate tasks
What is an advantage of specialisation ?
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
What is the impact of divisions of labour on stakeholders ?
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
What does the decision to change the production process depend upon ?
The nature of the product
Cost of machinery
Cost of redundancies
Avaliability of technology
Financial status
