Theme 2.4 Flashcards
What are the three different types of production?
1.Job-A one off small product that is tailored to consumer needs
2.Batch-Similar items are produced together
3.Flow-Product moves continuously through production process
What are three evaluation points of Job production?
+Employees can feel more motivated
+Associated with higher quality
-Requires close consultation with client
What are three evaluation points of Batch production?
+Cost savings can be achieved by buying bulk
-Tasks could become repetitive and boring
-Takes time to switch production of one batch to another
What are three evaluation points of Flow production? + - -
+Less need for training & skills
-Production is shut down if flow stops
-Goods are mass produced: No differentiation
What are three evaluation points on Process production?
+Processes can usually be automated which reduces unit costs
+Large quantities can be produced
-Difficult and disruptive if the production process has to be stopped
What is cell production?
where work is organised into teams and each team is given responsibility of doing a part of production process.
What is the calculation for Unit costs?
Total production costs in period/ Total output in period
What is economies of scale?
Where costs decrease as output increases
What are three internal
What are three internal economies of scale?
1.Financial
2.Technical-using equipment to boost productivity
3.Marketing
What is labour intensity? with examples
Production relies on using labour resources
-Hair dressing
What is capital intensity? with examples
Production relies on using capital resources
-Car manufacturing
What are 3 evaluation points on Capital intensity? ++-
+Greater opportunities for economies of scale
+potential for significantly better productivity
-Large investment
What are 3 evaluation points of Labour intensity? +- -
+Labour is a flexible resource through multi-skilling and training
-Potentially high costs of labour turnover
-greater risk of problems with employee/ employer relationship
What is capacity utilisation?
The proportion of a business’ capacity that is actually being used over a specific period
What is the formula for capacity utilisation?
Actual level of output/maximum possible output x100
What are 3 costs of holding stocks?
- Cost of storage
- Obsolescence risk
- Interest costs- tying up capital which the business may be paying interest
What are two advantages of low stock levels?
- Lower risk of stock obsolescence
- Less capital tied up in working capital - can be used elsewhere in the business
What are two advantages of high stock levels?
- Production fully supplied
- Better able to respond to sudden changes in demand
What is quality assurance?
The processes that ensures production meets the requirements of customers
What is quality control?
More about detecting defect rather than preventing it
What is TQM?
A management philosophy that focuses on continuous improvements of the product
What are three evaluation points of TQM? ++-
+eliminates cost of inspection
+Motivation as employees feel more involved
-Requires strong leadership
What is Kaizen?
Another kind of quality assurance which encourages employees to engage fully with finding way to improve quality processes
