Topics 37-40 (Production) Flashcards
What is job production?
Job production is where items are made one at a time. It is often associated with sole traders who make “one-off” products.
Advantages of job production
- High quality products
- Motivated workers
- Can be custom made
- Unique, to specification
Disadvantages of job production
- High labour costs
- Slow production
- Specialist tools needed
- Expensive - no EoS exploited
What is batch production?
Batch production is when a business makes goods in batches. They can be switched to something else on the same production line. An example would be a bakery. It uses Taylor’s method.
Advantages of batch production
- Workers specialise in one process
- Lower unit costs as outputs are higher
- Production is flexible
- Lower wages can be paid
Disadvantages of batch production
- Planning and coordination needed
- Less motivated workers
- Small batches still have high unit costs
- Money tied in work-in-progress
What is flow production?
Flow production is organised so that items flow round the factory in a continuous process until finished. Large quantities of products are made, and semi-skilled staff are used to operate machinery.
What is cell production?
Cell production is when items are organised into groups and teams and are set up at workstations to see a product through to completion. Workers with different skills work in each cell and work together to create different products within the same product family.
Advantages of flow production
- Very low unit costs due to EoS
- Quickly produced output
- Modern plants can offer flexibility
- Speed of production can be altered with demand
- Workers can be low paid
Disadvantages of flow production
- Products may be too standardised
- Huge set-up costs
- Very low worker motivation due to repetition
- Breaks can be very expensive
Advantages of cell production
- Product flexibility
- Lead times are cut
- Movement of resources is reduced
- Less work-in-progress
- Team-working is encouraged
What is productivity?
Productivity is the amount of output that can be produced with a given amount of resources.
Factors influencing productivity
- Specialisation of the division of labour
- Education and training
- Motivation of workers
- Working practices
- Flexibility
Advantages of capital intensive production
- Cost effective
- Presise and consistent
- 24/7 operation
- Easier to manage than people
Disadvantages of capital intensive production
- Huge set-up costs
- Huge delays if machines break down
- Can be inflexible
- Could reduce morale in workforce
Advantages of labour intensive production
- More flexible
- Cheaper for small scale production
- Cheaper in some countries
- Creativity can solve problems
Disadvantages of labour intensive production
- People are difficult to manage
- People can be unreliable
- People need breaks and holidays
- People need to be motvated
Implications of being over-utilised
- Lower costs
- Can cause stress and tiredness
- Inflexible
Implications of being under-utilised
- Not making the most of its resources
- Increased costs
- May affect morale of workers
- Cope easier with changes in demand
What is lead time?
The amount of time it takes for stock to be ordered, recieved, inspected and made ready for use
Implications of holding too much stock
- Storage costs
- Opportunity cost of tied up cash
- Quality may deteriorate over time
- Admin costs
- If demand falls, could go unsold
- Theft by employees
Implications of holding too little stock
- Cannot cope with unexpected rises in demand
- Delays in deliveried can half production
- Cannot cope with unexpected shortages in materials
- Less benefit from economies of scale
Advantages of just-in-time (JIT)
- Improved cash flow
- Reduced waste
- Lowers costs
- Improves motivation
Disadvantages of just-in-time (JIT)
- Faith placed in reliability and flexibility of suppliers
- Loose out on economies of scale
