Methods of production Flashcards
What is methods of production
how an organisation changes its raw materials into finished goods
Describe job production
when a unique good is produced to customers specifications
skilled employees produce goods from start to finish
normally hand made goods
used when low demand exists for a product
Describe batch production
group of identical products are made at once. production is then stopped and cleaned before a group of highly similar products are made
used when a variety of one product is demanded
staff are often semi skilled
Describe flow production
the product passes through various stages with parts being added at each stage until complete
when the product is made employees have one job to do
when all goods produced are exactly the same
used when products are in high demand
Advantages of job production
exact customers specifications can be met
customers specifications can be changes mid production
high prices can then be charges
workers are highly motivated
employees use a variety of skills to make different products
Disadvantages of job production
costs are not recovered until job is finished
timely to produce products
costly equipment and tools are required
high wage bill for skilled employees
no bulk buying discounts
Advantages of batch production
can be made to customers specifications
work in progress goods can be made
bulk buying discounts
less need for skilled employees
some standardised machinery can be used
Disadvantages of batch production
change of batch means idle time while machine is cleaned and reset
problem with one goods means the whole batch has a problem
small batch will equal high costs
employees tasks can be repetitive
Advantages of flow production
massive quantities of identical products are produced
bulk buying discounts
machinery can work 24/7 without breaks
high automation will mean less flaws and errors
quality checks can be built into production
Disadvantages of flow production
high set up costs
low staff motivation
breakdown of machinery stops production
customer specifications cant be met
high demand is required
What does the production method depend on
The product which is being produced
the finance available
the demand from the market
the technology available
the staff available
the size of the businesses premises
the quality methods used
Advantages of labour intensive methods of production
employees can use their initiative
no initial capital outlay
each product will be unique
Disadvantages of labour intensive method of production
high recruitment and selection costs
high training costs
the same products cannot be made every time
increased errors and wastage
high wages for skilled staff
Advantages of capital intensive methods of production
machines can work 24/7
identical products can be made every time
less errors and wastage
unskilled workers reduces the wage bill
disadvantages of capital intensive method of production
customers requirements cannot be met
high set up costs
machinery breakdowns can reduce or stop production
low employee motivation due to repetitive work
