production, productivity and efficiency Flashcards
(17 cards)
what does production mean
the transformation of resources into goods or services
what does job production mean
the production of a single product at a time
what are the advantages of job production
high quality due to skipped workers, workers are well motivated due to work variety, products can be custom made, production is easy to organise
what are the disadvantages of job production
high labour costs, production may be slow, a wide range of specialist tools may be needed, generally expensive
what does batch production mean
competing an operation on all units before performing the next one
what are the advantages of batch production
workers are likely to specialise in one process, unit costs are lower because output is higher, more use of machinery
what are the disadvantages of batch production
more complex machinery may be needed, careful planning is needed, less motivation because the same task is repeated, if batches are small costs will be high
what does flow production mean
where each operation on a unit is performed continuously one after the other
what are the advantages of flow production
very low unit costs due to economies of scale, output can be produced very quickly, production speed can vary
what are some disadvantages of flow production
products may be too standardised, huge set up costs, can be low motivation, breaks in production can be very expensive
what does productivity mean
the amount of output that can be produced with a given input of resources
what does capital intensive mean
use more of machinery relative to labour
what are the advantages of capital intensive
machinery work 24/7, easier to manage than people, more precise and consistent
what are the disadvantages of capital intensive
huge set up costs, huge delays if machinery breaks down
what does labour intensive mean
production methods that make more use
of labour relative to machinery
what are the advantages of labour intensive
cheaper for small scale production, people are creative and cal solve problems and make improvements
what are the disadvantages of labour intensive
people are more difficult to manage, people are unreliable, people cannot work without breaks and holidays, people may need to be motivated in order to increase performance
