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