Production Flashcards
Production
The process by which products are manufactured - converting inputs (FOPs) into ouputs (goods and services)
Factors of production
Land (where materials are extracted from), Labour (people and their skills), enterprise (entrepreneurs organise the other FOPs), Capital (equipment, machinery).
Job production
A method of production which a product is supplied to meet the exact requirements of a customer
Flow production
Occurs when an item moves continuously from one stage of a process to another
Specialisation
Occurs when individuals focus on a limited number of tasks.
Lean production
An approach to production that aims to minimise waste
Just-in-time production (JIT production)
Holds as little stock as possible. Items are ordered just in time to be used.
Kaizen
Means ‘continuous improvement’. It is an approach to production that aims to achieve change from a series of small steps.
Cell production
a type of mass production that splits work into teams known as cells. Each cell is managed to achieve goals such as quality, efficiency and waste reduction
Pros of lean production
Long term benefits. Over time reduced costs, more efficient labour, greater motivation, greater quality, boost to profit.
Cons of lean production
Really poor in the short term across all fields, costs increased due to training and inefficiency as well as waste. May take a long time for it to be worth it. Expensive initial investment
Product Portfolio
The range of products a single company has for sale.
