Production processes Flashcards
What is Job production?
Job production, where items are made individually and each item is finished before the next one is started. More labour and costly intensive. Limited to high value e.g. designer dresses are made using the job production method.
What is batch production?
Batch Production, where groups of items are made together. Each batch is finished before starting the next block of goods. Can identify an issue and recall if necessary. Makes 50 loaves of bread, does not make another lot until first is completed
What is flow production?
Flow production, where identical, standardised items are produced on an assembly line. Most cars are mass-produced in large factories using conveyor belts and expensive machinery such as robot arms. Everyone has a different role, e.g. kitchen staff - one person cooks the meat, one makes the sauce ect
Difference between production and productivity
Production is the total amount made by a business in a given time period.
Productivity measures how much each employee makes over a period of time. It is calculated by dividing total output by the number of workers.
What is lean production/kaizen?
Lean production focuses on using as little resources as possible, whilst ensuring quality. It aims to cut costs by making the business more efficient and responsive to market needs.
What is hybrid production?
Combination of batch and flow production
What is under capacity?
A situation in which companies in an industry are making and supplying fewer products than customers buy or are expected to buy
What is over capacity?
- The situation in which an industry or factory cannot sell as much as its plant is designed to produce. Machines get broken, workers get tired, not enough staff
What is fixed cost?
- Remain consistent in the business. E.g rates, rent, labour
What is variable cost?
- Cost that changes based on how much is made
What is the importance of improved productivity and efficiency for business?
An increase in productivity without any increase in costs, means the company has improved efficiency. Increasing productivity and efficiency over time allows businesses to produce more goods and services per unit of input.
What are ways to improve productivity and efficiency in a business?
Productivity can be improved through:
- training
- investment in equipment
- better management of staff
Training and investment cost money in the short term, but can raise long-term productivity.
Discuss the impact of operating above or below normal capacity for a long period of time on business
When a company is under capacity, it means they are not supplying enough of their product. This means earnings are low, and the company may not be able to continue funding themselves. Workers would still need to be paid, but company may not be able too pay them. Causing need to make some workers redundant, maybe reduce product cost ect
Discuss how a business can benefit from achieving economies of scale
Economies of scale are the cost advantage from business expansion. When economies of scale are achieved, a businesses unit costs may begin to fall. This can happen because of Purchasing economies, Marketing economies, Administrative economies, and Research and development economies.
Purchasing economies are when large businesses often receive a discount because they are buying in bulk.
Marketing economies from spreading the fixed cost of promotion over a larger level of output.
Administrative economies from spreading the fixed cost of management staff and IT systems over a larger level of output.
Research and development economies from spreading the fixed costs of developing new or improved products over a larger level of output.
What production does Tip Top use
Hybrid. Batch production is used because Tip Top is only focusing on one flavour/product at a time, and Flow is used because there are different machines/workers for every step
