Production Of Goods & Services Flashcards
(24 cards)
Productivity
Output measured against inputs to create it
How. to inc productivity
- improve quality of product
- use automation
- improve training
Adv of inc productivity
- reduced input needed to create outputs
- lower average costs
- higher wages, inc productivity
Buffer inventory
Inventory held to deal with uncertainty of customer demand
Lean production
When business try to cut down waste and inc efficiency
Types of waste
- overproduction
- waiting
- transportation
- defects
Adv of lean production
- less storage of materials
- quicker production
- better use of equipment
Method of lean production
- Kaizen
- jit
- cell production
Kaizen
Continuous improvement through elimination of waste
Adv of Kaizen
- inc productivity
- less space taken up due to production
Jit
Reduce need to hold inventories of raw materials
Cell production
Production line separated into separate units
Method of production
- job production
- batch production
- flow production
Adv of job production
- suitable for personal services
- workers have more varied jobs
- product meets requirements of customer
Disadv of job production
- skilled labor, high costs
- production takes long
- materials special purchased
Batch production
Quantity of 1 product made, quantity of other product made
Adv of batch production
- flexible way of working
- give variety to workers jobs
Disadv of batch production
- space needed
- expensive
Flow production
When products are mass produced continuously
Adv of flow production
- high output of standardized products
- benefit from economies of scale
- low average costs, low prices, high sales
Disadv of flow production
- little job satisfaction
- space needed
- high set up costs
Adv of new tech
- higher production
- high quality products
- greater job satisfaction
Disadv of new tech
- higher unemployment
- expensive
- become outdated quickly
Factors affecting production method used
- nature of product
- size of market
- size of bus.
