Production, productivity and efficiency Flashcards
Production def
Is the transformation of resources into goods or services
Factors affecting choice of method of production
- target market
- technology
- resources
- standards
Job production def
This involves making individual goods either by a single workers or a group of workers that meet the specific requirements of the customers
Features of job production
- these items are one off and unique eg wedding dress maker
- usually made to customer specifications , premium prices
Job production advantages
- product usually high quality
- producer meets individual needs of customer
- greater job satisfactions - involved in all stages of productions
Job production disadvantages
- cost of producing one unit of job is higher
- labour intensive
- requires investment skills and training
Batch production def
Is where many similar items are produced toegether. Each batch goes through one stage of the production process before moving into the next stage
Batch production advantages
- making in batches reduces unit costs
- can still address specific customer needs
- use of specialist mshcinary and skills can increase output and productivity
Disadvantages of batch production
- time lost between switching batches ge if machinery needs to be reset
- need to keep stocks of raw materials, cash investment in work in progress
- potentially demotivating
What is production in action
When a business uses a combination of all three types of production at different times depending on the product or customer needs
Flow/ mass production def
Is producing as many as possible of an identical product continuously on an assemble line
Features of flow/mass production
- used for mass market products
- usually highly automated
- product moved continuously through production processes with no stoppages
Advantages of flow/mass production
- capital intensive meaning high proportion of machinery in relation to workers, low costs, 24hrs
- can gain economies of scale which should further lower the cost per unit of production
Disadvantages of flow/mass production
- so much machinery is difficult to a,yer in the production process making production inflexible
- work can be boring for employees involved keeping staff motivated
Specialisation def
When work is divided into separate tasks or jobs that allow workers to become skilled at one of them