production processes Flashcards
the importance of cost production
you need to keep them as low as possible
the quality of the product and service
they must be of a good quality for people to use or buy them
adding value
the purpose of production is so the business can add value to its products
this means ensuring sales revenue is greater than cost of production
methods of production
batch
flow
job
job production definition
a product is made individually from start to finish it is likely to meet a customers individual requirements often is bespoken examples are wedding cakes or dresses haircuts and landscape gardening
job production advantages
high quality service/ products
skilled labor used therefore highly motivated staff-therefore meet individual customers
each item is different- high selling price
job production disadvantages
cost output is high
expensive labour
difficult to speed up production
batch production
a group of identical products are produced then production is stopped and re-organised order to then produce another batch
products are produced in bulk but production is not continuous
batch production benefits
making in batches reduces unit costs
can still address specific customer needs e.g. size weight style
use of productivity machinery and skill can be increase output and productivity
batch production disavantages
potentially de-motivate staff
need to keep stock for raw material
time lost switching between batches
flow production
production is 24/7 and is creating mass production of an object or product
if a machine broke down the production line will have to stop
advantages to flow
production is much more quicker and produce more products
firms can benefit from the economy of sales which should lower the cost per unit of production
capital intensive meaning it uses high propotion of machinery compare to workers so it is cheaper
disavantages to flow
capital intensive it cost of money to start the business
it can be boring for workers so you must motivate them
production is inflexible and products are either the same or sightly different for ones taste
it is difficult to alter production
evaluation of production
businesses wants to keep their cost low
some products need variation or to be bespoken to
types of technology
robotics
computer
automation
automation
production that can be controlled automatically by programming a computer to control machinery
the role of workers is to oversea the computers ensuring that production is running correctly
computers
computers are helping to automate production but also to automate processes in the service sector
many people bank online and pay electonically like using apple pay
computers are used to store data for example in schools insurances flights and companies
robotics
an extension of automation it computer is programmed to control a robot to do tasks
used wildly in car manufacturing
in the past it is wildly used to do unskilled and repitive tasks more recently through the development of ai robots are being used for skilled and complicated work
disavantages to technology
workers are made redundant which adds to short term costs
new skilled workers may be recruited
workers need more training
machines can break down
it is expensive at first
there are security issues especially in banking
advantages to robotics
machines can do boring and dangerous jobs
24/7
they do not get sick and have absent days
new technology can lead to new products
they are more accurate than humans
