5.2 Flashcards
(25 cards)
What is the main function of a business?
To provide and produce goods and services that satisfy the needs and wants of customers.
What must a firm do to operate efficiently?
A firm must carry out the efficient transformation of inputs into outputs.
What is production?
Production is the process of transferring inputs (like raw materials and labour) into outputs (finished goods or services).
Why is production important in a business?
Production is the core part of the operations function, which ensures that goods and services are created effectively.
What are the main types of production methods?
Job Production – One-off, customised products.
Batch Production – Groups of identical products made together.
Mass Production – Large-scale continuous production of standardised goods.
Mass Customization – Mass production with options for individual customisation.
What is job production?
Job production involves the customisation of a product from start to finish, tailored to an individual’s needs.
What does job production cover?
A wide range of tasks.
What is a characteristic of job production?
Job production is very labour intensive, meaning high worker costs.
What is the most expensive part of job production?
Labour, as it requires skilled workers and time.
Give an example of job production.
Lawyers (each case is customised and unique).
What are the advantages of job production?
Good quality.
Motivated staff with good pay.
Flexibility in product design.
Uniqueness of final product.
Variety of choice for customers.
What are the disadvantages of job production?
Time-consuming.
Labour-intensive (very expensive).
Long lead time to produce.
Few economies of scale.
Cash flow problems.
What is batch production?
Batch production involves products being made in groups or batches.
How does batch production work?
Once one batch is finished, a new batch begins.
What are the advantages of batch production?
Economies of scale.
Specialisation of workers/machines.
Variety of products.
Less risk of overproduction.
What are the disadvantages of batch production?
Inflexible compared to flow production.
Higher storage needs.
Stoppages between batches.
Boredom (repetitive tasks).
What is mass/flow production?
Mass/flow production involves making large amounts of standardised products.
What are the key features of mass/flow production?
Often used by large businesses.
Very capital intensive (uses machines more than people).
Most expensive cost comes from buying machinery.
Involves specialisation – each worker or machine has one specific role.
Produces homogeneous (identical) products.
Flow production does not stop – runs day and night.
What are the advantages of mass/flow production?
Cost-effective (cheap per unit).
Large sales volume possible.
Low labour costs.
Standardised quality.
What are the disadvantages of mass/flow production?
Boring and repetitive tasks.
High capital costs (machinery is expensive).
What is mass customisation?
A business may use both mass production and customisation – this is called mass customisation.
How does mass customisation work?
Offers a balance of low price and personalised options.
Give an example of mass customisation.
Mini Coopers (customers choose colours and features, but basic structure is mass-produced).
