Production Flashcards

1
Q

What is productivity

A

Productivity is the output per input (person or machine) per hour

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2
Q

What is production

A

Production is the total amount of output that is produced in a
time period

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3
Q

Different methods of production

A
  1. Job 2. Batch 3. Flow 4. Cell
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4
Q

What is Job production

A

• Job production is where one single product is made at a time
• Products are made for a specific client or customer
• Products made are high quality, which means higher prices can be charged

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5
Q

When should you chose Job production

A

• Correct production process to choose when one product needs to be produced at a time:
• Building a ship
• Hand knitting a jumper
• Building a bridge over a river • Writing a book

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6
Q

Advantages of job production

A

• Bespoke, unique, one off, to customers measurements or specifications e.g. a kitchen
• Very motivated workers who can see one item made from start to finish
• Motivated workers are normally more productive and have lower rates of absenteeism

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7
Q

Disadvantages of job production

A

• Skilled labour and craftsmen are expensive
• Wide range of tools may be required
• Hard to speed up if demand increases

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8
Q

What is batch production

A

• This is the production method used when a business wants to make more than one item at a time

• Goods are made in batches, and can be switched over to make something different on the same production line
• Bread factory also makes crumpets and tortillas
• Furniture makers may produce a run of one design of chair before switching to make something else

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9
Q

Advantages of batch production

A

• Production can be changed to meet customer needs or fluctuations in demand
• Standard production of items means it can be mechanised less labour involved than job production

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10
Q

Disadvantages of batch production

A

• Small batches carry higher average unit costs (EOS)
• Workers may be less motivated with repetitive work
• Idle time between batches needs to be managed as this is wastage

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11
Q

What is flow production

A

• Flow production uses production lines with continuous movements of items through the process
• Many mass produced products are made this way such as; cola, cars and toothpaste
• The factory would be laid out in assembly lines

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12
Q

When should you choose flow production

A

Flow production
• Correct production process to choose when standardised products need to be mass produced in huge volumes in a continuous process:
• Toothpaste
• Cola
• Crisps
• Chocolate bars

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13
Q

Advantages of flow production

A

• A business can make larger quantities which means they can bulk buy raw materials and save money (economies of scale)
• Automated and computerised production means improved quality and more complex designs can be made in shorter times

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14
Q

Disadvantages of flow production

A

• High costs to buy the factory and machinery
• Low motivation of staff due to repetitive tasks
• Break downs and lost production can be costly
• Very inflexible, hard to change the factory machinery to make different products, the production process will be set up to make just one item e.g. bottled cola

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15
Q

What is cell production

A

• Cell production is dividing up production into separate self contained areas that are each responsible for a section of work
• In the DR Martens video you can see that cutting the leather is one section, then sewing is another etc.
• Each cell will have a team leader and a team of multi-skilled workers

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16
Q

Advantages of cell production

A

• Wastage through movement of materials is reduced
• Time waiting for stock to arrive is reduced
• Bottlenecks in the production process are reduced (where everything builds up waiting to go to the next stage)
• Cell production can mean increased worker commitment and motivation and therefore increased productivity

17
Q

Disadvantages of cell production

A

• Any breakdown of machinery will stop the production
• Needs more staff to supervise than a continuous flow
• Expanding can be hard as space may be limited or restricted by tasks

18
Q

Ways to improve productivity

A
  1. Productivity bonus
  2. Productivity deal
  3. Staff training
  4. Investment in new machinery and equipment
19
Q

What is productivity bonus

A

A business may decide to boost their productivity levels by offering their employees a productivity bonus
• So for example, the employees if they increase production by 5% may be entitled to with a lump sum bonus e.g. £500 or a percentage on their wages

20
Q

What is productivity deal

A

• The union in a business may negotiate a productivity deal for all staff
• This should motivate everyone in the organisation to work harder and more efficiently
• Again this is a financial method of motivation and as such there is a cost

21
Q

What is staff training

A

• If staff are better trained they can be more productive
• Imagine a factory, its your first day, you have no idea what to do, until you are shown what to do all you can do is stand around – which is very inefficient
• Once you are fully trained you will be able to work hard at your job

22
Q

How does investing in new machinery and equipment help productivity

A

• The business may decide to invest in new machinery to make it more efficient and produce more goods per hour – which will boost productivity

23
Q

Factors which influence productivity

A

• Quality of inputs in the production process – faulty parts in an assembly line can stop the line
• Labour shift organisation of workers, having the right number of staff on at peak times will increase productivity overall, as stretched staff are demotivated by being overloaded

24
Q

What are the links between productivity and competitiveness

A

• In essence if a business is more productive then it can produce goods more economically efficiently and therefore is in a position to charge more competitive prices
• For example a business that introduces s new machine perhaps to bottle beer or wrap crisps and can now produce double the amount in half the time

25
Q

What is labour intensive production

A

• Labour intensive production makes products using mostly human effort (or labour)
• China and India both have access to cheap labour so favour these production methods

26
Q

What is capital intensive production

A

• In some industries only capital intensive production is possible
• In capital intensive production goods are produced using mainly machines and equipment
• UK has high labour costs so favours capital intensive production

27
Q

What is the average cost formula

A

TC / output