Productivity + Investment Flashcards
what is job production?
A single item, is made, from start to finish, usually according to the customers specification. Each item is unique and tailor-made
advatages of job production
the job is a unique product that exactly matches the requirments of the customers order rather than produced in the hope of a sale
specifications for the job can change during production, depending on the customers changing needs/wants
employees have a greater level of job satisfaction as they get variety in their work and see results of efforts
disadvantages of job production
labour, plant and machinery needs to be flexiable in order to cope with the variety of work
having a large range of equipment and labour with many skills can be quite expensive for the organisation
a job tends to be unique, it is more diffult to cost it accurately
average costs of production can be high as the product is not being mass produced off a production line , tends to be the cheapest method of manufacture
what is batch production?
Ocurs when a number of similar products are produced at the same time, in a batch. machines are then re-set and the next set of items with slightly different characteristics are produced
advanatges of batch production
there is still some flexiablilty as each batch can be changed slightly to meet a customers requirments
it does not need such a wide range of machinery and workers may not need to be so flexiable as with job production
if order comes in a batch of them it can be moved through the final stages of production and the customer order quickly met
its easier to gain economies of scale, more than job production as more of the same product is being produced and there can be oppourtunites for bulk buying
its easier to cost than job as the work is carried out over and over again, it is not often the firm has to produce a special batch very different
what are the 2 things involving flow production?
larger amounts of machinery
division of labour on a production line
disadvanatges of batch production
the production machinery has to be altered each time a diffenent batch of goodss made and this results in lost production time, reduces productivity
it can be difficult to sequence batches from one production process to the next without avoiding building up stocks of work-in progress, as some machinery may need 40 items to go through in a batch
the firm needs to keep stocks of raew materials. this means that cash is tied up, which can have a negative effect on cash flow
what is flow production?
often referred to as mass production as it occurs when a production takes place as a continuous process, a flow of items passing from one production stage to the next until the product is completed
advantages of flow production
goods are made quickly and sold, so cash comes in more quickly than with job production and some form of batch production to replace money spent on production
labour costs will tend to be reduced as often as labour used be less skilled than for job production, due to increased machinery , less labour required
a continuous flow work-in progress levels are confined to those products actually on the production line, no storage space is required for buffer stocks
the production process can be made very automated with the use of computerised machinery and robots, which do not need the same breaks as humans, dot get repetitive or bored
there are huge possibilities for economies of scale
disadvantages of flow production
product must be standardised therefore the firm cannot respond to individual customers demands
the set up costs of a flow production plant are likely to be very high
good relationships need to be built with suppliers to ensure that the production line is not held up due to parts or raw materials not arriving on time
machines must be well maintain to make sure that breakdowns are minimised and do not interrupt the flow of production
efforts must be put in to motivating the workforce as much of the work will be boring
what is cell production?
a production technique that groups workers into multi skilled cells, with each cell taking responsibility for the production of a particular product or part of a product
cell production is a form of _______
team working
workers commitment
each cell is responsible for a complete unit of work
advantages of cell production
closeness of cell members should improve communication, avoiding confusion arising from misunderstood or non-received messages
workers become multi-skilled and more adaptable to the future needs of a business
greater worker motivation arising from variety of work, team working and more responsibility
quality improvements as each cell has ownership for quality on its area
disadvantages of cell production
the company culture has to encourage trust and participation or workers can feel they are being constantly pushed for more and more output with no respite
the company have to invest in new materials handling and ordering systems suitable for cell production
cell production may not allow a firm to use its machinery as intensively as in traditional flow production
some small scale production lines may not yield enough savings to make a switch cell production economically worthwhile
recruitment and training of staff must support this approach to production
what is lean production?
production technique which attempts to produce goods and services whilst eliminating waste
its about reducing the costs associated with waste, such as less labour, less space and less inventory to reduce waste and gain maximum quality
