37. Production, productivity & efficiency Flashcards
Advantages of job production:
- Quality is high because workers are skilled
- Workers are well motivated because work is varied
- Products can be custom made
- Production is easy to organise
Disadvantages of job production:
- High labour costs due to skilled workers
- Production may be slow- long lead times
- A wide range of specialist tools may be needed
- Generally an expensive method of production
Advantages of batch production:
- Workers are likely to specialise in one precess
- Unit costs are lower because output is higher
- Production is flexible since different orders can be met
- More use of machinery is made
Disadvantages of batch production:
- More complex machinery may be needed
- Careful planning and co-ordination is needed
- Less motivation because workers specialise
- If batches are small, costs will still be high
- Money may be tied up in work- in-pogress
Advantages of flow production:
- Very low unit costs due to economies of scale
- Output can be produced very quickly
- Modern plant and machines can allow some flexibility
- Production speed can vary according to demand
Disadvantages of flow of production:
- Products may be too standardised
- Huge set-up costs before production can begin
- Worker motivation can be very low - repetitive tasks
- Breaks in production can be very expensive
Advantage sof cellular manufacturing:
- Floor space is released because cells use less psace than a flow production line
- Product flexibility is improved
- Lead times are cut
- Movement of resources and handling time is reduced
- There is less work-in-progess
- Teamworking is encouraged
- There may be a safer working environment and more efficient maintenance
Factors influencing productivity:
- Specialisation and the division of labour
- Education and training
- Motivation of workers
- Working practices
- Labour flexibility
- Capital productivity
Ways to improve productivity
- Improving labour productivity:
· Increase specialisation
· Improve motivation
· Improve training
· Increase labour flexibility - Improving capital productivity:
· Improve service and maintenance
· Update and replace old technology
· Ensure that operatives are well trained
Factors influencing efficiency:
- Introducing standardisation
- Outsourcing
- Relocating
- Downsizing
- Delayering
- Investing in new technology
- Lean production
- Kaizen
- Just-in-time production
batch production
a method that involves compleating one operation at a time on all units before performing the next
capital intensive
production methods that make more use of machinery relative to labour
capital productivity
the amount of output each unit of capital (e.g. one machine) produces
cell production
involves producing a family of products in a small self-contained unit within a factory
division of labour
specialisation in specific tasks or skills by an individual
downsizing
the process of reducing capacity, usually by laying off staff
efficiency
producing a level of output where average cost is minimised
first-mover
a company that is the first to sell a new product or provide a new service, when there are no other competing companies
flow production
large-scale production of a standard product, where each operation on a unit is performed continuously one after the other, usually on a production line
job production
a method of production that involves employing all factors to complete one unit of output at a time
kaizen
a Japanese term that means continuous improvement
labour-intensive
production methods that make more use of labour relative to machinery
labour productivity
the amount of output each unit of labour (e.g. one worker) produces
lean production
an approach to operations that focuses on the reduction of resource use
