Methods of Production (2.4.1) Flashcards
What does Automation mean?
The amount of technology you use in your production process
What does Standardization mean?
The more standardised production is, the more you can bulk buy and you can cut costs
What does Downtime mean?
The amount of time workers or technology are NOT producing goods or services
What are Economies of Scale?
The more you buy, the cheaper you get each unit so the lower your unit costs
What are Business Operations?
The method a business will use to produce and deliver a product or a service to the customer
What are the four types of Production?
Job Production
Batch Production
Flow Production
Cell Production
What is Job Production?
-One-off, bespoke products
-High quality Products made by experienced staff
What are the advantages of Job Production?
-Premium price can be charged
-Easy to differentiate from competition
What are the disadvantages of Job Prodcution?
-Staff require higher wages and process is slow
-Unit costs tend to be higher
What is Batch Production?
-Batches of similar products
-More flexible production than flow
What are the advantages of Batch Production?
-Standardised process make it cheaper than Job
-Use of technology makes it cheaper than Job
What are the disadvantages of Batch Production?
-Both less varied than Job so staff moral may be lower
-Downtime between batches make it less efficient than Flow
What is Flow Production?
-Large Scale, 24/7 production of standardised products
-Specialist machinery designed for production line
What are the advantages of Flow Production?
-Lots of technology/Low staff leads to lower unit costs
-Consistent, standard quality
What are the disadvantages of Flow Production?
-Production process inflexible to change
-Very high initial set-up cost
