Topic 3 - business operations (1. production process)

Question 1

what is production management

Answer 1

all the activities in managing the transformation process

Question 2

whhat is production

Answer 2

process of changing inputs such as labour services into goods and services that can be sold.

Question 3

what are the forms of production

Answer 3

job production

flow production

Question 4

what is job production

Answer 4

a method of production in which a product is supplied to meet the exact requirements of a customer.

Question 5

examples of businesses that may use job production

Answer 5

garden design
tailors
personal trainers
restaurants

Question 6

adavantages of job production

Answer 6

able to justify why they are charging high prices

USP

Question 7

disadvantages of job production

Answer 7

businesses may find it hard to sell products if they charge too may and therefore unable to make profit
often requires skilled employees

Question 8

what is flow production

Answer 8

when businesses produce on a large scale they will use flow production. each item moves continuously from one stage of the process to another.

Question 9

advantages of flow

Answer 9

produce huge amounts of volume
allows specialisation, when individuals focus on a limited number of tasks
relatively cheap per unit

Question 10

disadvantages f flow production

Answer 10

even though it is cheap per unit it is quite expensive for the machinery
risky
no USP

Question 11

What is efficiency in business

Answer 11

refers to how well it is using its resources to produce products. If a business uses fewer inputs and ends up with more outputs it will be seen to be efficient. if a business doesn’t use as many inputs then the price per unit will go down.

Question 12

what factors does the efficiency of a business depend on

Answer 12

how well employees are managed
how good suppliers are
investment in machinery and technology
way products are produced

Question 13

what is lean production

Answer 13

approach to production that aims to minimise waste and make a business more efficient.

Question 14

what are the forms of waste in a business

Answer 14

exceeds demand then items have to be thrown away
wasted time
faulty products will need to be remade
holding stocks can be wasteful and can be damaged or stolen

Question 15

what is JIT

Answer 15

just in time production means producing to order. Holding as little stock as possible. Items are ordered just in time to be used.

Question 16

what is kaizen

Answer 16

means continuous improvement. It is an approach to production that aims to achieve change from a series of small steps.