3.1 Production processes

Question 1

Types of production processes.

Answer 1

Job production:
- produce custom-made products for each customer.
- expensive, slower and less efficient.
- craftsmanship: requires highly trained staff (high value/high-end products)

Flow production:
- continuous flow of production for standardised products (low end).
- can lead to technical economies of scale
- high investment costs (equipment)
- inflexible (hard to adjust equipment)
- high likelihood of staff demotivation (low craftsmanship - repetitive), leading to high staff turnover.

Question 2

Lean production

Answer 2

Reduce waste as much as possible, increasing efficiency and causing higher profitability.