The purpose of business operations / production processes Flashcards
3 types of production processes
- Job production
- Batch production
- Flow production
Job production -
- the worker specifically produce the good for customer. Job production focuses on low volume of production but offers a higher variety of finished product.
Job production advantages (5)
- Customer requirements can be handled
- Higher quality
- Higher motivation and job satisfaction because of the lack of monotonous work
- Flexible production method
- Production is easy to organise
Job production disadvantages (6)
- Individual cost of unit might be high
- Labour intensive
- Requires close consultation with the client
- Reliant on high skills
- Wide range of specialist tools
- Production may be slow, longer lead times
Batch production -
-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)
Advantages of batch production (3)
- A variety of products can be manufactured to satisfy customer needs
- Lower unit costs compared to job production
- Use of specialist machinery and skills can increase output and productivity, becoming more efficient
Disadvantages of batch production (3)
- Potentially de-motivating
- Need to keep stocks of raw materials
- Time lost switching between batches, machinery may need to be reset => decreased efficiency and productivity
Flow production -
- continuous movement of items through the production process. Flow production uses production lines to manufacture products. Continuous and uninterrupted production method
Advantages of flow production (6)
- Larger scale production
- Less labour used
- Workers can specialise and become more efficient
- Production lines can operate 24/7 if necessary
- Consistent, standard quality
- Lower unit costs than in other production methods
Disadvantages of flow production (6)
- Inflexible production due to use of machinery
- Jobs are repetitive, leads to lower motivation
- Initial purchase and set up costs can be high
- Breakdowns can cause in downtime/inefficiency
- Less skilled workers required, might cause staff retention
- Products might be too similar to rivals, resulting in businesses competing on price
Productivity -
- the amount produced (output) for a given number of employees (input). Compares the number of workers with the output that they are producing.
Production -
- relates to the total quantity produced
How to increase productivity (6)
- Recruit correct staff in the first place
- Training
- Motivate staff (financially and non-financially)
- Invest in up-to-date machinery
- Replace workers with machinery
- Review working practices to ensure staff work as efficiently as possible
Benefits of using technology in production (7)
- Consistence in terms of production quality
- Reduction in waste; technology will not make mistakes
- Increase in productivity; technology does not tire unlike humans
- Higher customer satisfaction rates
- Produce cost efficiently with low labour costs per unit
- Safer working environment => technology can perform dangerous tasks to humans
- Flexibility; products can be customised which influence selling prices
Drawbacks of using technology in production (4 and conclusion)
- The initial costs are very expensive.
- Breakdowns can be problematic, resulting in a loss of production
time. - Machines will need some “downtime” or time for servicing to prevent breakdowns in the future; during this time, production will be limited.
- 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.