business 2.4 Flashcards
(27 cards)
what are the four methods of production
job production (doing one job at atime)
flow production (constant flow of production)
batach production (doing production in batches)
cell production(multi skilled teams each in charge of different production process
advantages and disadvantages of job production
adv
high quality
custom products
high motivation
disadv
production is slow
high labour costs
advantages and disadvantages of batch production
adv
workers specialise
production can start when previous batch runs out
disadv
requires careful consideration
money tied up in stock
advantages and disadvantages of cell production
adv
more efficient
high motivatoin through teamwork
disadv
extensive orginisation
conflicts
advantages and disadvantages of flow production
adv
rapid production
eos
highly automated
disadv
high cost
difficult to adapt to change
what is productivity?
output per input per hour
what are some factors that influence productivity
employee motivation
skills of staff
business orginisation
investment in capital
What is efficiency?
use of production resources as cost effectively as possible
factors that influence efficience
investment of captal
standardisation of production process
evaluation of labour intensive
labour intensive is when gooods produced by mostly physical labour
adv
low cost production where labour costs are low
creativity
workers are felxibly skilled
disadv
workers need breaks
workers need to be motivated
high training costs
evaluation of capital intensive
where production is mostly carried out by capital machinery
adv
low costs of prodction
same efficincy
no breaks disadv
high costs
cant react to change
What is capacity utilisation?
how much of a businesses production capacity is being used
What are the implications of under utilisation of capacity
higher average costs
business can respond to cahnges in demand
what are the implications of over utilisation of capacity
wont have flexibility to respond to new orders
lower average costs
workers will feel more secure
what are some ways to improve capacity utilisation
increase sales
redeployment(moving underused resources to other parts of the business)
reducing capacity
outsourcing
stock control diagram
illustrates flow of stock in and out of a business
what is buffer stock
quantity of goods kept in case of stock shortages
advantages and disadvantages of buffer stock
adv
stability in supply
competitive advantage over competitors
raw materials security
disadv
high costs
opportunity cost
buffer stock can become obselete
what is just in tiem stock management
where raw materials are not stored on site but devilered by suppliers just in time for production
advantages and disadvantages of just in time stock management
adv
reduced stock holding costs
cash flow improved
unusefd storage space
disadv
eos generally not posssible
unable to meet surge in demand
administrative costs are higher
unreliable suppliers
what are some ways to minimise waste
store goods effectively
plan ahead of time
sales tactics
what is lean production?
aiming to reduce waste while maintaing or improving production and quality
evaluate quality control as a method of quality management
inspecitng quality at the end of production process
adv
inexpensive and simple
disadv
rejection of finished goods is a waste of resources
risk of sending out defects
evaluate quality assurance as a method of quality management
inspecting quality of product throught production process
adv
waste of rsources are minimal
cause of defect is identified so future quality issues can be prevented
disadv
staff training required
may lengthen production process
