Operations - Production Process

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  • Operations
    • The Production Process
      • Production is the process of changing inputs into goods and services that can be used.
    • Job Production
      • Products meet the exact needs of the customer e.g. hairdressers
      • Pros
        • To gain an advantage over rivals
        • Meet individual customers needs
      • Cons
        • Expensive as each product is individual
    • Batch Production
      • A batch of similar products are made together at the same time
      • Pros
        • A large quantity of the product can be made at one time
        • Allows employees to specialise in one area
        • Overall efficiency of the business could improve
      • Cons
        • Sales have to be estimated which could mean waste
        • Initial outlay for the machinery can be expensive
        • If something fails it could cost lots of money
    • Flow Production
      • An item moves continuously from one stage of the production process to the another
      • Pros
        • Huge volumes of output
        • Allows for specialisation in one area
        • Relatively  cheap per unit
      • Cons
        • Initial costs are high
        • Risky - spend money before you make money
        • May lack flexibility
        • Potential boredom due to specialisation
    • Efficient Production
      • When a business uses a minimum amount of resources to produce its goods or services
      • Spend Less Money
        • Bigger Product
          • Efficient
      • Spend More Money
        • Smaller Product
          • Inefficient

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