Unit 3.1 - Production methods Flashcards
Define job production
Making one thing at a time
Define flow production
Making lots of things continuously
Define lean production
Producing as efficiently as possible
Benefits of job production (4)
Unique product
Charge a high price
High quality
Motivated workers
Costs of job production (4)
High manufacturing costs
Require highly skilled workers
Labour intensive
Time consuming
Benefits of flow production (3)
Low unit costs (long run)
Identical products
Products can be priced competitively
Costs of flow production (3)
High initial costs - capital intensive
Requires space
Slow to adapt to changes in demand
Benefits of lean production (3)
Improve efficiency - lower costs
Workers actively involved - motivated
Reputation - consumers/employees
Costs of lean production (3)
Expensive to set up
Needs to be a culture throughout the business
Lose out on potential purchasing economies of scale
Difference between just in time (JIT) and just in case (JIC)
Just in time is a stock method where stock arrives just as it is needed in the production process whereas just in case holds onto stock in storage.
Benefits of JIT (2)
Lower storage costs
Flexible to changes in demand
Costs of JIT (2)
Can’t benefit from purchasing economies of scale
Needs good links with suppliers - if late means production stops
Benefits of JIC (2)
React to fluctuations in demand - increases/decreases
Buy in bulk
Costs of JIC (2)
High storage costs
Stock may become obsolete - no longer required
