production, productivity and efficiency
- Created by: Hetal M
- Created on: 22-04-17 19:44
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- production, productivity and efficiency
- production methods
- job production
- one off production/job
- architects, plumbers, builders
- change in customer requirements can be handled
- higher quality work
- flexible production method
- high labour cost
- needs close consultation with consumer
- one off production/job
- flow production
- products continuously flow through the production line
- less need for training and skills
- suitable for manufacture of large quantities
- goods are mass produced - less differentiation for consumers
- production is shut down if flow is stopped.
- products continuously flow through the production line
- cell production
- groups given responsibilities of doing a part of the production process as product is moved along the line
- increased motivation
- specialisation
- groups given responsibilities of doing a part of the production process as product is moved along the line
- batch production
- a set number of identical products are made
- firm handle on unexpected orders
- worked by specialist staff or equipment
- time consuming when changing one batch to another
- need to maintain higher stocks of raw materials
- a set number of identical products are made
- job production
- how to measure productivity efficiency
- productivity
- output per worker (per hour, day, week)
- unit costs
- total production costs in period / total output in period
- unit cost = average cost per unit produced
- non-productive resources
- too many idle resources = inefficiency
- productivity
- scale of economies
- bring down unit costs of production and sold at lower prices
- reduce the average cost per unit to be effective.
- internal economies of scale
- technical economies
- large scale, afford to invest in machinery
- specialisation of the workforce
- large businesses split the workforce into groups to boost production
- marketing economies
- large businesses can spread marketing and advertising budget over a large output, bulk buy things
- has negotiation power in the market
- technical economies
- external economies of scale
- happen within the industry
- development of research and facilities
- spending to improve the local community
- labour intensive
- high costs related to employment
- food processing, hotels, restaurants, hairdressing
- variable costs = lower breakeven point
- lower costs than capital
- risk of employee problems
- need continuous training
- high costs related to employment
- capital intensive
- high costs related to machinery
- oil extraction, transport infrastructure, car manufacture
- mainly fixed costs = high breakeven point
- resistance from changing workforce to machinery
- better productivity
- low labour costs
- high costs related to machinery
- production methods
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