Notes
Methods of Production
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JOB PRODUCTION: involves the production of a single product at a time
Products meet specific customer requirements eg tailor made wedding dress or World Cup stadium
Designed for a specific consumer/purpose
Flexible; consumers can choose exactly what they want
Workforce usually consists of highly skilled craftsmen and specialists so can be expensive
BATCH PRODUCTION: business produces a group of items one at a time, each group undergoes one stage of the process before being moved to the next
Eg fish and chips shop; one batch of chips are made and after they are sold another batch is made
Often used when demand for the product is regular, and often used in a factory where similar variations of products are made eg Heinz soup (chicken tomato ect)
FLOW PRODUCTION: item moves from one stage of the production process to another in a continuous sequence
Eg producing a vehicle, moves from one place to another
Large quantities of standardised product are produced by a semi-skilled workforce that specialise in one particular task
Requires large amount of machinery and equipment and the holding of large stocks of raw materials and components
THE TYPE OF PRODUCTION USED DEPENDS ON A NUMBER OF FACTORS:
The product itself
The cost of labour
The cost of capital
The skills of labour
The size of the targeted market
The nature of the product - what is being produced/ is it individual/one off
Demand for the product - how many people will want to buy the product, if higher levels more likely to be flow
Price - how much are consumers willing to pay and how much can the firm produce for
Variety of products in the range - is there a number of varieties/flavours in the production range
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- A Level AS Business Studies Note on Methods of Production, created by samyajahangir on 17/03/2015.
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- samyajahangir · Mar 2015
- Updated
- Feb 19, 2016
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