Quality measures and production methods Flashcards
what are the 4 main types of production methods?
batch
flow
process
job
what is job production?
when a person makes one unique product from start to finish - it is customised
examples of job production 3
O2 arena
wedding dress
bridge
advantages of job production 2
job satisfaction (start to finish) specific to customer
disadvantages to job production 2
labour intensive - high production costs
employees must be skilled with a wide range of equipment
what is batch production?
producing a variety of similar goods
examples of batch production 3
cupcakes in a bakery
clothing
houses on an estate
advantages of batch production 2
meets the desires of more customers
batches made to order - reduces waste
disadvantages of batch production 2
tasks can be repetitive and boring
wider range of products = more stock needed
what is flow production?
makes use of an assembly line to produce identical products
examples of flow production 3
cars
pizzas
consumer goods
advantages of flow production 2
mass production
low production costs
disadvantages of flow production 2
capital intensive - specific machinery required
large amount of materials
what is process production?
turning raw materials into goods using IT
example of process production 3
sugar
oil
coffee
advantages of process production 2
automated systems - low labour cost
can produce large amounts
disadvantages of process production 2
if there is a problem, all production stops
expensive start up costs
what is production?
the process of turning raw materials into finished products
why do businesses produce goods? 2
to satisfy customer
to make a profit
what is value added to a good?
the amount by which the value of the product is increased by in each stage of production
what is value added to a service?
adding something to a service to make a customer pay more
what is labour intensive?
production using people
what is capital intensive?
production using machinery
what is the production process?
the difference between the value of the raw materials and the value of the product created
ownership of GG Toys
public limited company
what type of production does GG use and why?
batch -
produces many of the same parts
how does GG Toys use specialisation and the division of labour?
allows a group to become highly skilled in an area by breaking down the production process into sections and assigning one group a section. They then become highly skilled at this
what sector is GG in?
secondary - manufactures toys
how does GG add value? 2
production
association with a film
ownership of Tom’s Toys?
sole trader
what sector is Tom’s Toys in?
tertiary - sells toys
how does Tom’s Toys add value? 2
personal customer service/knowledge
lots of choice of traditional toys
what are the 7 things associated with quality measures
waste returns after sales care reliability safety customer satisfaction durability
why is quality a concern? 3
gives a competitive edge
builds customer confidence in brand
reduces costs incurred in post sale problems
2 ways to monitor quality
finding mistakes
avoiding mistakes
1 way to avoid mistakes
give responsibility of a certain section to a group so they ensure no faulty products are sold
3 ways to identify mistakes
mystery shopper
random checks
tests
what are external regulators?
people who test the quality of a business’ products/service
what is the ISO?
International Organisation for Standardisation
sets standards on quality
what is the Consumers Association?
informs customers about quality and value for money
what is the British Standards Institution?
confirms product meets certain standards
what is the Trade Association?
membership is an indication of quality
what is the Health and Safety Executive?
responsibility in the workplace
name 5 external regulators?
ISO Health and Safety Executive Trade Association Consumers Association British Standards Institution
what are economies of scale?
a higher productivity leading to a fall in production cost per unit
what are diseconomies of scale?
when the cost to produce each unit increases rather than falls
what does a business’ productivity tell us?
how efficient it is at producing its products
what is a business’ productive capacity?
its resources (premises,equipment, machinery etc) and workforce
effect of working at full capacity on staff
illness cause by stress
effect of working at full capacity on equipment
extra use causes more damage
What are inputs?
The resources used to create the end product
What are the outputs?
The end product made
What is quality assurance?
Assuring a product meets the desired standards of quality
What are are quality measures?
Means of measuring the quality of a product
What is Total Quality Management?
Giving responsibility of a part of the production process to a group to assure no faulty products are sold
what is an internal source of finance?
money coming from within the business
what is an external source of finance?
money coming from outside the business
3 reasons why a business may require finance?
taking over another company
relocating to a bigger premises
cash-flow problems
what are business costs?
the costs a business must pay out in order to function
what is break eve point?
where total costs = total revenue
