Production Productivity And Efficiency Flashcards
What is Productivity?
the output per input (person or machine) per hour
What is Production?
the total amount of output that is produced in a time period
What is job production?
Job production is where one single product is made at a time
Advantages of job production
Higher prices can be charged to the customers
Disadvantages of job productions
Skilled labour and craftsmen are expensive
Wide range of tools may be required
What is batch production
Goods are made in batches, and can be switched over to make something different on the same production line
Advantages of batch production
Production can be changed to meet customer needs or fluctuations in demand
Employees specialise so become good at their job
Disadvantages of batch production
Small batches carry higher average unit costs
Workers may be less motivated with repetitive work
Machines can break which causes problems
What is flow production
Flow production uses production lines with continuous movements of items through the process
Advantages of Flow production
A business can make larger quantities which means they can bulk buy raw materials and save money
Disadvantages of flow production
High costs to buy the factory and machinery
Low motivation of staff due to repetitive tasks
What is cell production?
Cell production is dividing up production into separate self contained areas that are each responsible for a section of work
Advantages of cell production
Wastage through movement of materials is reduced
Time waiting for stock to arrive is reduced
Disadvantages of cell production
Any breakdown of machinery will stop the production
Productivity bonus
the employees if they increase production by 5% may be entitled to with a lump sum bonus
