Topic 37: Production

Question 1

Types of production

Answer 1

. Job production
. Batch production
. Flow production
. Cell production q

Question 2

Job production: Advantages VS disadvantages

Answer 2

Advantages
. Quality is high due to skilled workers
. Workers are well motivated
. Producers can be custom made
. Production is easy to organise
Disadvantages
. High labour costs due to skilled workers
. Production may be slow
. Wide range of specialist tools needed
. Generally an expensive method of production

Question 3

Batch production: Advantages VS disadvantages

Answer 3

Advantages:
. Workers are likely to specialise in one process
. Unit costs lower because output is higher
. Production is flexible since diff orders can be met
. More use of machinery is made
Disadvantages:
. More complex machinery needed
. Careful planning and coordination needed
. Less motivation
. If batches small -> costs will be higher

Question 4

Flow production: Advantages VS disadvantages

Answer 4

Advantages:
. Very low unit costs
. Output can be produced very quickly
. Modern and plant machinery allow flexibility
. Production speed can vary depending on demand
Disadvantages:
. Products may be too standardised
. Huge-set up costs
. Worker motivation can be very low
. Breaks in production -> expensive

Question 5

Cell production: Advantages and disadvantages

Answer 5

Advantages
. More floor space available
. Product flexibility is improved
. Movement of resources and handling time is reduced
. Teamwork is encouraged-> increased productivity & motivation
. Safer working environment
Disadvantages:
. Vulnerable to breakdowns or absences
. Multi-skilled workers -> high labour costs
. Cells rely on trust, teamwork and communication -> personality clashes can reduce motivation

Question 6

Factors influencing productivity

Answer 6

. Specialisation and division of labour
. Education and training
. Motivation of workers
. Working practices
. Labour flexibility
. Capital productivity

Question 7

Factors influencing efficiency

Answer 7

. Introducing standardisation
. Outsourcing
. Relocating
. Downsizing -> advantages & disadvantages
. Delayering -> advantages
. Lean production + kaizen
. Investing in new tech
. Just in time production

Question 8

Labour intensive production -> advantages & disadvantages

Answer 8

Advantages:
. More flexible than capital
. Cheaper for small-scale production
. Cheaper for large scale production in places like china or japan
. People are creative
Disadvantages
. People more difficult to control than machines
. People are unreliable + people can’t work without holidays etc
. People need to be motivated in many cases

Question 9

Capital intensive production -> advantages & disadvantages

Answer 9

Advantages:
. Cost-effective if large productions
. Machinery is more precise and consistent
. Can operate 24/7
. Machinery is easier to manage than people
Disadvantages:
. Set-up costs
. Huge delays due to machinery breakdown
. Can be inflexible ->machinery highly specialised
. Poses threat to workforce + could reduce morale

Question 10

Factors of labour and capital intensive production

Answer 10

1. Nature of product
2. Relative price of two factors
3. Size of the firm