Production Flashcards
What is production?
Production means making a product or a service to satisfy consumer wants and needs.
Example: A car manufacturer producing vehicles for customers.
What are the responsibilities of the Operations department?
• Raw material to finished goods
• Factory Manager: For quantity and quality of products produced + services
• Purchasing Manager: Responsible for materials for productions
• R&D Manager: For design and testing of the product
• Productivity: Ratio of output to input.
Example: The Operations department oversees the entire production process from start to finish.
What is the formula for labor productivity?
Productivity= output/units/number of labor workers.
69% of the production costs are attributed to labor expenses.
What is job production?
Producing a one off item specifically designed for the customer requires a skilled work force
What are the advantages of job production?
1) Able to undertake specialist projects
2) High added value
3) High level of worker motivation
What are the disadvantages of job production?
1) high unit production costs.
2) Time consuming.
3) wide range of equipment needed
What is batch production?
Producing a limited number of identical products each item in the batch passes through the stage of production before going onto the next stage.
What are the advantages of batch production?
1) Some economies of scale
2) fast production with lower cost per unit than job production
3) Some flexibility in design of product in each batch
What are the disadvantages of batch production?
•High level of stock at each stage
•Unit costs likely to be higher than flpw production
What is flow production?
Producing identical items in a continually moving process; used for products with a steady high demand
Which factors influence the method of production
1) size of market
2) amount of capital available
3) availability of other resources
4) market demand exists for products adapted to specific customer requirements
What is the importance of stock control?
To make sure the business doesn’t run out of stock and to meet customer demands. Keeping alot of stock costs money so the level of stock must be well regulated.
What are the advantages of JIIT?
1) Capital invested in inventory is reduced
2) Greater flexibility in case of changes in demand and taste
3) less chance of inventory being outdated
What are the disadvantages of just in time?
Multi skilled adaptable staff needed
Delivery costs will increase
Order administration costs will rise
Possible reduction in bulk discounts
Reputation depends on rrliablity of supplying firms
What is Kaien?
Continuous improvement through the elimination of waste; regular meeting of workers to discuss how to increase effeciency
