Production process Flashcards
What businesses can chose from production processes ?
Businesses providing goods.
What are the three type of production process?
Job production, Batch production, Flow production
What’s job production?
Job production is when individual products are made one at a time to meet specific customer preferences.
What is Batch production?
Batch production involves making a set quantity of identical products. This is also knows as a “batch”.
What is Flow production?
Flow production involves continuously making identical products. This allows the production process to be heavily automated.
What are the advantages of Job production?
- High profit margins for bespoke products
- Employees may gain enjoyment from using their specialist skills.
What are the disadvantages of Job production?
- Highly skilled staff are required, which increases costs
- Highly skilled staff may not be available, which can make training staff very expensive.
What is an advantage of batch production?
- Able to make a variety of sizes or flavours
- Can be partially automated
- Can produce more products than job production
What are the disadvantages of batch production?
- Not as flexible regarding customers tastes as job production
- As batch production is not fully automated, costs may be higher than in flow
What are the advantages of using flow production?
- Able to make larger quantities
- Consistency in production means products are identical, meaning customers know exactly what they are buying.
- Highly automated processes
What are the disadvantages of using flow production?
- In competitive markets for similar mass produced goods, profit margins can be very low.
- Customers like products that are tailored to their preferences
- Expensive to buy all the machinery needed for automation.
How can a business improve productivity?
- Investing in up to date machinery- workers can produce more products
- Providing training for staff- to improve their skills so they can work more
What is productivity?
It’s a measure of efficiency. It can be measured in products produced per worker, per day, per month
What is the benefits of a business being productive?
It enables the business to keep their costs per unit as low as possible, meaning they can price their goods more competitively or increase profit margins
Why do businesses need to use tech in a balanced way?
They need to use tech in a balanced way so the disadvantages don’t outweigh the advantages. So they need to balance certain things.