Production

Question 1

Define production?

Answer 1

It is the managing of resources effectively to produce goods/services turning resources into output.

Question 2

What does production aim to do?

Answer 2

Add value to products, this is the difference between consumer valuation (price) and the costs of inputs (I.e. raw materials).

Question 3

What are the three production methods?

Answer 3

Job, batch and flow.

Question 4

What is job production and give an example?

Answer 4

A method of production whereby output is to individual customer order and each product is once off. E.g. a barber.

Question 5

What is batch production and give an example?

Answer 5

A method of production whereby output is in batches. Similar products pass through production stage as a group. E.g. a bakery.

Question 6

What is flow production and give an example?

Answer 6

A method of production whereby output is in large quantities which are produced in a continuous process. E.g. canned drinks (Coke, Fanta, etc.)