Production Flashcards
(27 cards)
Job production
-Small number of items produced
-Made to customers specifications
Job production ads
-Higher quality
-Employee better motivated - job satisfaction
Job production dis
-Requires cost consultations
-Individual cost of unit may be high
Flow production
-products move constantly through the production process
-Making higher volumes of the same product
Flow production ads
-less need for trading and skills
-Manufacturing larger quantities
Flow production dis
-Long set up time and high quality machinery
-Production is stopped if flow is stopped
Batch production
-Similar items are produced together
Batch production adv
- allows customers to have some options
- able to handle any unexpected orders
Batch production dis
- Takes time to switch production from one batch to another
- Boring (repetitive) - 0 motivation
Process production
Series of processes which raw material go through
Process production adv
- Large quantities are produced
- Ideal for products that must be consistent
Process production dis
- difficult and disruptive if production is stopped
- little opportunity to make different versions of the product
Cell production
Work is organised into teams which each tackle a stage in the production
Productive efficiency
the point of output where the lowest cost per unit can be achieved
Productivity efficiency measured by:
-productivity
output per worker / hour of labour/ output per day
- unit cost - total cost / number of units produced
Productivity
How much input can be turned into output
productivity measured by:
- output per worker / output per machine
unit cost
total production cost / total output in the period
Economies of scale
arise when unit costs fall as output increases.
Internal economies of scale
arises from the increased output of the business
- e.g Technical, financial, marketing
External economies of scale
Occurs within a industry
-e.g. associated with geographical areas, access to research and development facilities
Labour intensive
production relies on using resources
-e.g. hotel, restaurant
Labour intensive adv
- labour is flexible- multi skilling and training
- labour at production process - continuous improvement
Labour intensive dis
- greater risk of problems with employees/employer
- Continuous investment in training
