Production processess

Question 1

what is the advantages of flow production

Answer 1

benefit from economies of scale as large quantities made so avg unit cost drops allowing competitive prices

simpler tasks for employees

Question 2

what are disadvantages of flow production

Answer 2

capital intensive- High initial costs of machinery to set up the business Large investment into things like expensive machinery leads to increased risks

Employees may become bored or demotivated due to their limited range of tasks

Question 3

what are advantages of just in time production

Answer 3

products will be fresher - particularly important for perishable items such as fresh fruit and vegetables.

capital tied up in stock that could go out of date or out of fashion. This capital can then be reinvested or spent elsewhere. reduces production costs, allowing the business to price its products to give it a more competitive advantage.

Question 4

what are the disadvantages of just in time

Answer 4

it requires good co-ordination w supplier as if mistakes in delivery or timing, firm run out of stock unsatisfied customer

hard for businesses to react to unexpected changes in demand

lose out on economies of scale as avg cost falls so cannot competitive pricing

Question 5

what is kaizen

Answer 5

‘continuous improvement’ and makes all employees responsible for suggesting ways that the business can improve the production process.