Theme 2 Topic 1 - Production, Productivity and Efficiency Flashcards
Define Production
Creating goods and services
OR
The total amount made by a business made in a given time
Define Job Production
Items are made individually and each item is finished before the next is started e.g. designer dresses
Define Batch Production
Groups of items are made together. Each batch is finished before the next is started e.g. bread
Define Flow Production
Identical, standardised items are produced on an assembly line e.g. cars
Define Cell Production
Each cell or production unit is responsible for the production of a complete item
What are two advantages of job production?
Products are of high quality as they are handmade (USP), Allows some variety in production
What are two disadvantages of job production?
Very time consuming and difficult to speed up production, Skilled labour is expensive
What are two advantages of batch production?
Fewer skilled workers are needed but employees become good at their job as they are specialised, Allows some variety in production
What are two disadvantages of batch production?
Breakdown or reset of machinery can cause major problems, Work can be repetitive resulting in a demotivated workforce
What are two advantages of flow production?
Able to operate 24 hours a day resulting in little lost production time, Can bulk buy raw materials to make larger quantities
What are two disadvantages of flow production?
Huge cost of machinery and storing stock, Production is very inflexible - can’t change what is produced
Efficiency can be improved by…
Making full use of resources, Improving labour productivity, Investing in new technology
Define Productivity
Measures how much each employee makes over a period of time (Total Output/Number of Workers)
Staff productivity depends on…
Skills, Quality of machines available, Effective management
Productivity can be improved through…
Training, Investment in equipment, Better management of staff by improving motivation
Define Efficiency
Making the best possible use of resources. Efficient firms maximise outputs from given inputs.
Define Labour Intensive Production
When most of the production is done by the workforce
Define Capital Intensive Production
When most of the production is done by machinery
What are two advantages of labour intensive production?
Able to create a wide range of products, Easier to adapt to changes in demand
What are three characteristics of labour intensive production?
Labour costs form a high proportion of total costs, Low start-up costs, Flexible production if workers are skilled and adaptable
What are three characteristics of capital intensive production?
A large % of total costs are due to operating machinery, High start-up costs, Can be inflexible as machines can only make standardised products
What are two disadvantages of labour intensive production?
Production could be slow, Need high skilled workers who are often paid more and need a lot of training
What are two advantages of capital intensive production?
Able to produce many identical products of high quality, Machines can work 24 hours and employees operating them are low skilled
What are two disadvantages of capital intensive production?
Machines need to be well maintained to avoid breakdown, Work is repetitive so workers could get unmotivated
