3.1 - Production Process

3.1 - Production Process

1. Key Words

   • Production management
     • All the activities in managing the transformation process.
   • Production
     • The process of charging inputs such as labour services into goods and services that can be sold.
   • Specialisation
     • When individuals focus on a limited number of tasks.
   • Kaizen
     • 'Continuous improvement'- an approach to production that aims to meet the exact requirements of a customer.

2. Methods of production

   • 1. Job Production e.g. Hairdressers
     • A method of production in which a product is supplied to meet the exact requirements of a customers needs.
     • Advantages
       • Allows businesses to charge a higher price since due to personal services offered.
     • Disadvantages
       • Each product is different so therefore it slows down production and costs more.
   • 2.just-in-time production e.g. Mcdonalds
     • Holds as little stock; items are ordered justin time to be used..
     • Advantages
       • Reduces waste 
     • Disadvantages
       • Suppliers must respond very quickly.
   • 3. Flow production e.g. Coca-cola
     • When an item moves continuously from one stage of the process to another
     • Advantages
       • - A lot can be made. - 24-hour production - you don't have to employ as many people.
     • Disadvantages
       • - Set up costs are high.- The process lacks the ability to make even the smallest of changes without a high cost. - My not be high quality
   • 4. Lean production
     • An approach that aims to minimise waste.
     • Advantages
       • -  More ethical - Minimises Waste - Increased productivity
     • Disadvantages
       • Faulty products have to be remade.