Production of Goods & Services Flashcards
What do you think attributes to the success of Bosch India’s forward thinking mentality and early push towards digitalization?
Their forward-thinking process involving IoT & Industry 4.0 has helped them become a leader in automation & digitalization. Bosch chose to accelerate the digital tranfsormation of their enterprises earlier than many multinational enterprises. They developing solutions based in block chain, automation, and AI with the purpose of building technologies of the future that generate cross-industry sustainable ecosystems.
What are the factor of productions?
Factors of production are the inputs available to supply goods and services for the economy
- Natural resources: availability of natural resources that can be used for production
ex: agricultural land, gas, oil, water - Human resources: the factor of production where human inputs are used
ex: competencies and talent that are performed - Capital: material tha is used throughout the supply chain products
ex: property, machinery - Entrepreneurship: are the leaders of organizational production factors and risks
What are the 3 phases of production planning?
- Long term planning (3-5 year period)
focused on what to produce, how many to produce, and in which location production should take place - Medium term planning (2 years)
focused on the layout of production facilities and where to obtain needed resources, including labor - Short term planning (one year or less)
this stage turns the organizational goals and aims into specific & executable plans
What are the 3 types of production?
- Mass production
It produces substantial amounts of single good, all at once. This metgod is used to keep the cost of production low by manufacturing identical goods using a standard-repetitive system or process.
ex: canned goods, medication, and cosmetics - Mass customization
This methos uses the same mass-production techniques, up to a certain point. After basic manufacture, the good is custom-tailored to specifications.
ex: automobiles, many cars are designes with certain unique luxuries such as sound system or heated seats - Customization
This system manufactures products to meet specific customer requirements.
ex: A 3D print-shop could take on clients and create an item to meet a need, such as a large one-time quantity of medical devices.
Explain the industrial revolution timeline!
- Industry 1.0 (1784)
Water & steam were used for the creation of mechanical production factories - Industry 2.0
Electricity allowed us to create labor divisions and mass produce products - Industry 3.0
Production automation was made possible by IT systems - Industry 4.0
Today Cloud technologies such as IoT and AI automate complex tasks
What is industrial strategy of business?
The production ability within the economy and the business environment for production and financial investments. Therefore, we can say that the policies cover an array of topics such as research and development, taxation, localized development, import and export promotion, competitive landscape and sustainability.
Describe the 5 points of success of UK for industrial strategy
- Structural change
Developed investment patterns and production cycles weakened the UK economy for almost 30 years - Supply side improvement & demand stimulation
This is the idea that a Govt should pursue an ‘investment-led growth strategy), whereby a Govt invests considerable amounts in innovation and infrastructure - Productivity increases
To increase productivity within sectors, such as education, healthcare, and coordination, an industrial strategy should be focused on accelerating innovation and learning.
Ex: UK found 3 weaknesses: low quality management, digital adoption, and low use of skills
Solutions:
- rethinking how jobs are designed and the types of study programs needed to help those in the public sector
- the definition of job-standards to help set up goals and guideline
- reimbursements or subsidies for people or organizations to help with ongoing training & education for employees - Innovation policy
The UK’s industrial strategy prior to digitalization was focused on deepening the existing innovation sectors. UK goal to reduce trade deficit and increase R&d by doing the following:
- increase spending for uni to promote innovation hubs
- slowly phase out current tax structures to make room for new policies that drive and reward innovation
- use a mix of taxpayer funding as equity in addition to grants and loans - Rebalancing geographies
Over the past 30 years, deficiencies in the UK economy became clear when Govt spending skewed towards London, leaving many other regions of the UK. Balanced growth requires strong subnational institutions with financial freedom and investment powers to oversee a region autonomously.
