8329593
Description
Flashcards by Amber Mullinger, updated more than 1 year ago
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Created by Amber Mullinger
about 7 years ago
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| Question | Answer |
| Factors that determine which production method should be used | Labour Land Machinery Other resources at their disposal |
| Labour Intensive Capital Intensive | Labour Intensive – a firm which makes greater use of labour than machinery Capital Intensive – a firm which makes greater use of capital machinery |
| 4 methods of production | Job Production Batch Production Flow Production Cell Production |
| Job production | Producing one single item which fits into a specific customers needs, e.g a designer dress. A single product is manufactured to completion before the firm will go on to produce another item. |
| Batch production | A whole group (batch) of items is produced together, e.g food items. The items move around the production process as a group. The entire group must complete one stage before any of the items move onto the next stage. |
| Flow production | Goods move through the production process in a continuous way. This is mostly used by firms that produce a high proportion of standardised products, e.g. a computer or television |
| Cell production | This involves the organisation of a work cell: a self contained mini production line. It involves a collection of equipment and workstations arranged in a single area which allows a product or group of similar products to be processed completely from start to finish . |
| Factors that help businesses decide which method to use | Type of product Demand for the product Quality level demanded by customers Size of the firm Availability of technology |
| JOB PRODUCTION ADVANTAGES - highly specialised/customised goods which means a higher price can be charged - could mean higher quality as all the focus is on one product at a time | JOB PRODUCTION DISADVANTAGES - may take a long time to fully produce products - high prices may put off customers if there's cheaper competition |
| CELL PRODUCTION ADVANTAGES -cells improve communication - workers become multi-skilled -motivation, due to variety of work, team working and more responsibility - quality improvements as each cell has ‘ownership’ for quality on its area | CELL PRODUCTION DISADVANTAGES - have to encourage trust and participation - may have to invest in new materials handling and ordering systems suitable Cell production may not allow a firm to use its machinery as intensively as in traditional flow production Some small scale production lines may not yield enough savings to make a switch cell production economically worthwhile The allocation of work to cells has to be efficient so that they have enough work, but not so much that they are unable to cope Recruitment and training of staff must support this approach to production |
| BATCH PRODUCTION ADVANTAGES - there is less demand for highly skilled workers, which lowers cost of wages - equipment can be standardised to a certain extent, which lowers costs | BATCH PRODUCTION DISADVANTAGES - repetition of jobs can demotivate employees - a high volume of stock may be held, tying up cash |
| FLOW PRODUCTION ADVANTAGES - in assembly lines vast orders can be met and large quantities produced - standardisation of machinery can keep costs low - automated machinery can operate without breaks | FLOW PRODUCTION DISADVANTAGES - large initial capital outlay is required, which is expensive - employees are unskilled and highly demotivated - customisation is difficult and would increase costs |
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