Production Processes: Flashcards
What is production?
The process of changing inputs, such as labour services and natural and man-made resources, into goods and services that can be sold.
What are the two methods of production?
1) Job production.
2) Flow production.
What is job production?
The production of one off items to meet the needs of an individual.
What is flow production?
Occurs when an item moves continuously from one stage of production process to the next.
What are the advantages of job production?
1) Business may be able to charge higher prices as its unique products they sell.
2) Products are likely to be high quality.
3) The variety of work may mean people wont get bored. Increases efficiency and motivation.
4) Could attract customers as products are specifically designed for them.
What are the disadvantages of job production?
1) Expensive to produce as each product is different.
2) Employees may need more training to design and produce different goods and services, increasing the cost of production.
What are the advantages of flow production?
1) Employees can become specialised in small tasks in certain aspects of production. Division labour.
2) Allows businesses as a lower unit cost.
3) Businesses can produce goods and services in huge quantities.
What are the disadvantages of flow production?
1) Expensive to set up.
2) Staff may be demotivated and bored due to limited tasks.
3) Lack of variety as products on the production line are identical.
4) May be less efficient than expected as you may sell a lot less than you produce.
What are the competitive advantages of efficient business?
1) Can sell at a lower prices than less efficient businesses and enjoy high profits.
2)It can sell at the same price as the less efficient businesses, and enjoy higher profits.
How can a business increase the efficiency of its production process?
1) Training and managing employees effectively.
2) Using technology to support production, e.g. amazon uses robots in its warehouses.
3) Minimising the number of faulty products.
What is lean production?
Method of production that aims to minimise waste and increase efficiency.
What are the two techniques of lean production?
1) Just-in-time.
2) Kaizen.
What is Just-in-time?
Its a stock control method that involves a business storing as little stock as possible, items are ordered just in time to be used.
What is kaizen?
Its a Japanese term meaning ‘continuous improvement’. This requires employees to regularly suggest small improvements that could be made in production.
What is an advantage of Just-in-time?
1) Storage costs are low.
2) Reduces waste.
