Production, productivity and efficiency Flashcards
Methods of production
Job
Batch
Flow
Cell
What is job production
- one off or small number of items produced
- normally made to customers specifications e.g wedding cake
- often undertake by small, specialist businesses
Advantages of job production
- customers requirements and changes can be handled
- associated with higher quality- can charge a higher price
- employees can be better motivated- more job satisfaction
- a flexible production method
Disadvantages of job production
- individual cost of one unit may be high
- often labour intensive = high labour costs
- require close consultation with the client
- usually reliant on high skills
What is batch production
- make a limited number of one identical product, then stop, recognise and make a batch of something else
- aim: concentrate skills, achieve better use of equipment and so produce good quality products more economically than manufacturing them individually
Advantages of batch production
- cost savings can be achieved by buying in bulk
- still allows customers some choice
- products can be worked on by specialist staff or equipment at each stage
- allows a firm to handle unexpected orders
Disadvantages of batch production
- takes time to switch production of one batch to another
- requires the business to maintain higher stocks of raw materials and work in progress
- tasks may become boring (repetitive) - reducing motivation
- size of batch dependent on capacity allocated
Flow production
- producing as many as possible of an identical product
- used for mass market products
- usually highly automated
- products move continuously through production process with no stoppages
Advantages of flow production
- cost per unit of production reduced through improved work and material flow
- suitable for manufacture of large quantities
- capacity intensive which means it can work constantly
- less need for training and skills
Disadvantages of flow production
- very long set up and time and reliant on high quality management
- high raw materials and finished stocks unless lean production used
- goods are mass produced- less differentiation for the customer
- production is shut down if flow is stopped
Cell production
- is where work is organised into teams
- teams are given responsibility of doing a part of production process as product moves through assembly line
Cell production often leads to improved productivity due to:
- increases motivation (team spirit and added responsibility)
- specialisation
What is specialisation
When work is divided into separate tasks or jobs that allow workers to become skilled at one of them
Advantages of cell production
- improves communication amongst team members- less communications break downs
- workers become multi skilled and more flexible
- greater motivation and productivity of workers
- quality improvements as all cell members responsible for quality
Disadvantages of cell production
- culture has to trust workers
- may need to invest in new material handling systems if moving to this method
- less intensive use of machinery
- staff need to be recruited carefully and trained
What is automation?
Using machines or computers to complete tasks instead of humans I
Under what circumstances is job production the most effective method?
When they need to meet specific requirements of the customer. When making individual, unique products.
Under what circumstances is batch production the most effective?
- when production has to be split into chunks e.g shoe sizes
- when labour costs are high enough to mean job production is too costly
- when a firm wants to limit the availability of an item
Under what circumstances is flow production the most effective method?
- when there is consistent, high demand for a single product
- when labour costs are high
- when efficiency allows prices low enough to boost sales on everyday items
Under what circumstances is cell production the most effective method?
- when there is a need for flexibility but also high production volumes
- when labour has a lot to contribute to ideas and improves efficiency
What is meant by productivity?
Output per worker. The speed at which an employee completes their task
Formula for calculating productivity
Total output / number of workers
How is productivity different from production?
Production- can be increased by employing more staff, working at same rate
Productivity- increases by improving the output produced by each worker
Identify 3 factors affecting productivity
- quality and age of machinery
- skills and experience of workers
- level of employee motivation
How does productivity link to competitiveness?
Higher levels of productivity lead to lower unit costs. This is because the labour cost involved making each unit falls as workers work faster. Lower unit costs allow businesses to cut prices while maintaining the same profit margin.
What is efficiency?
Measures the extent to which the resources used in a process generate output without wastage
How does quality and age of machinery affect efficiency?
Fewer breakdowns, mean fewer faults and newer machinery may produce with less variation
How do skills and experience of workers affect efficiency?
Skilled staff are likely to make fewer mistakes, while experience can mean staff spot the problems that lead to faults before they occur
How does the level of employee motivation affect motivation?
Motivation brings pride in work, so motivated staff will be careful not to make errors and to lose concentration less
Identify 3 implications to a business if they are labour intensive
- labour costs will form a high proportion of total costs
- managing labour costs becomes critical, perhaps forcing a firm to move abroad to lower wage countries or spend heavily on motivational methods
- labour intensive production offers far greater scope for tailoring products to suit customers’ needs, thus adding value
What does capital intensive mean?
Uses high levels of automation, reducing the role of humans as much as possible, replacing them with machines
Identify 3 implications to a business if they are capital intensive?
- initial costs will be very high, with the need to invest in a lot of specialist machinery
- running costs will be relatively low
- it may offer little flexibility in terms of product variations
Is job production likely to be labour or capital intensive?
Labour intensive
Key difference between productivity and efficiency
Productivity- output per worker
Efficiency- measures the extent to which the resources used in a process generate output without wastage
