Production

Question 1

Job production

Answer 1

-Small number of items produced
-Made to customers specifications

Question 2

Job production ads

Answer 2

-Higher quality
-Employee better motivated - job satisfaction

Question 3

Job production dis

Answer 3

-Requires cost consultations
-Individual cost of unit may be high

Question 4

Flow production

Answer 4

-products move constantly through the production process
-Making higher volumes of the same product

Question 5

Flow production ads

Answer 5

-less need for trading and skills
-Manufacturing larger quantities

Question 6

Flow production dis

Answer 6

-Long set up time and high quality machinery
-Production is stopped if flow is stopped

Question 7

Batch production

Answer 7

-Similar items are produced together

Question 8

Batch production adv

Answer 8

• allows customers to have some options
• able to handle any unexpected orders

Question 9

Batch production dis

Answer 9

• Takes time to switch production from one batch to another
• Boring (repetitive) - 0 motivation

Question 10

Process production

Answer 10

Series of processes which raw material go through

Question 11

Process production adv

Answer 11

• Large quantities are produced
• Ideal for products that must be consistent

Question 12

Process production dis

Answer 12

• difficult and disruptive if production is stopped
• little opportunity to make different versions of the product

Question 13

Cell production

Answer 13

Work is organised into teams which each tackle a stage in the production

Question 14

Productive efficiency

Answer 14

the point of output where the lowest cost per unit can be achieved

Question 15

Productivity efficiency measured by:

Answer 15

-productivity
output per worker / hour of labour/ output per day
- unit cost - total cost / number of units produced

Question 16

Productivity

Answer 16

How much input can be turned into output

Question 17

productivity measured by:

Answer 17

• output per worker / output per machine

Question 18

unit cost

Answer 18

total production cost / total output in the period

Question 19

Economies of scale

Answer 19

arise when unit costs fall as output increases.

Question 20

Internal economies of scale

Answer 20

arises from the increased output of the business
- e.g Technical, financial, marketing

Question 21

External economies of scale

Answer 21

Occurs within a industry
-e.g. associated with geographical areas, access to research and development facilities

Question 22

Labour intensive

Answer 22

production relies on using resources
-e.g. hotel, restaurant

Question 23

Labour intensive adv

Answer 23

• labour is flexible- multi skilling and training
• labour at production process - continuous improvement

Question 24

Labour intensive dis

Answer 24

• greater risk of problems with employees/employer
• Continuous investment in training

Question 25

Capital intensity

Answer 25

Production relies on using capital resources
-e.g. car manufacturers, transportation

Question 26

capital intensity adv

Answer 26

• Greater opportunities of economies of scale
• Better quality and speed

Question 27

capital intensity dis

Answer 27

-significant investment
-may generate resistance to change from labour force