unit 3.1 Flashcards
Production
process of changing inputs such as labour services into goods and services that can be sold
operation management
refers to all the activities in managing the transformation process
job production
unique products that meet the exact requirements of the customer
benefits of job production
Customers place a high value on the product
Can charge a higher price
Customers needs are met closely
Can give the business a USP
Flexible
drawbacks of job production
Cannot benefit from economies of scale
High unit costs
Training costs
May be difficult to make a profit
flow production
products moving continuously along a production line
benefits of flow production
Large volumes of output and sales
Specialisation of workers
Low unit costs
Economies of scale
drawbacks of flow production
High initial costs
High risk
Lack of flexibility
Workers may become bored
High rates of absence
efficiency
How well a business is using its resources to produce its products.
A business is most efficient when their unit costs are lowest.
how can a business be more efficient?
Machinery/technology - expensive to purchase
Motivated workers
Minimum waste
Specialisation
lean production
making products whilst minimising waste.
aims to increase efficiency
main forms of waste
Items which aren’t sold
Wasted time
Faulty products
Stock being damaged
just in time
A form of stock control, producing to order - the business only makes an item when there is a customer for it. This reduces waste by throwing away unwanted items.
kaizen
all employees are involved in how things are done. They will suggest methods to improve the efficiency of their section / department
