The purpose of business operations / production processes Flashcards

1
Q

3 types of production processes

A
  1. Job production
  2. Batch production
  3. Flow production
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2
Q

Job production -

A
  • the worker specifically produce the good for customer. Job production focuses on low volume of production but offers a higher variety of finished product.
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3
Q

Job production advantages (5)

A
  1. Customer requirements can be handled
  2. Higher quality
  3. Higher motivation and job satisfaction because of the lack of monotonous work
  4. Flexible production method
  5. Production is easy to organise
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4
Q

Job production disadvantages (6)

A
  1. Individual cost of unit might be high
  2. Labour intensive
  3. Requires close consultation with the client
  4. Reliant on high skills
  5. Wide range of specialist tools
  6. Production may be slow, longer lead times
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5
Q

Batch production -

A

-this involves making a group of identical items together. Each batch goes through one stage of the production process together as a group, before moving onto the next stage. The products produced by batch production will be similar but have some variation (style/colour)

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6
Q

Advantages of batch production (3)

A
  1. A variety of products can be manufactured to satisfy customer needs
  2. Lower unit costs compared to job production
  3. Use of specialist machinery and skills can increase output and productivity, becoming more efficient
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7
Q

Disadvantages of batch production (3)

A
  1. Potentially de-motivating
  2. Need to keep stocks of raw materials
  3. Time lost switching between batches, machinery may need to be reset => decreased efficiency and productivity
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8
Q

Flow production -

A
  • continuous movement of items through the production process. Flow production uses production lines to manufacture products. Continuous and uninterrupted production method
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9
Q

Advantages of flow production (6)

A
  1. Larger scale production
  2. Less labour used
  3. Workers can specialise and become more efficient
  4. Production lines can operate 24/7 if necessary
  5. Consistent, standard quality
  6. Lower unit costs than in other production methods
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10
Q

Disadvantages of flow production (6)

A
  1. Inflexible production due to use of machinery
  2. Jobs are repetitive, leads to lower motivation
  3. Initial purchase and set up costs can be high
  4. Breakdowns can cause in downtime/inefficiency
  5. Less skilled workers required, might cause staff retention
  6. Products might be too similar to rivals, resulting in businesses competing on price
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11
Q

Productivity -

A
  • the amount produced (output) for a given number of employees (input). Compares the number of workers with the output that they are producing.
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12
Q

Production -

A
  • relates to the total quantity produced
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13
Q

How to increase productivity (6)

A
  1. Recruit correct staff in the first place
  2. Training
  3. Motivate staff (financially and non-financially)
  4. Invest in up-to-date machinery
  5. Replace workers with machinery
  6. Review working practices to ensure staff work as efficiently as possible
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14
Q

Benefits of using technology in production (7)

A
  1. Consistence in terms of production quality
  2. Reduction in waste; technology will not make mistakes
  3. Increase in productivity; technology does not tire unlike humans
  4. Higher customer satisfaction rates
  5. Produce cost efficiently with low labour costs per unit
  6. Safer working environment => technology can perform dangerous tasks to humans
  7. Flexibility; products can be customised which influence selling prices
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15
Q

Drawbacks of using technology in production (4 and conclusion)

A
  1. The initial costs are very expensive.
  2. Breakdowns can be problematic, resulting in a loss of production
    time.
  3. Machines will need some “downtime” or time for servicing to prevent breakdowns in the future; during this time, production will be limited.
  4. There may be a waste of capacity if the machine’s output is not fully needed and therefore it is idle for a period of time.
    => Overall, a business will need to balance the costs of the technology, with the savings and benefits it will
    provide, when making any decisions about investing in technology.
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