production, productivity, and efficiency

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  • production, productivity, and efficiency
    • methods of production
      • job production
        • to produce one item at a time, labour intensive requiring very skilled workers. The item stays still and the worker moves around it
          • advantages
            • bespoke, unique, one - off, to your measurements or specification, e.g. a kitchen
            • very motivated workers & simple production organisation
          • disadvantages
            • skilled labour and craftsmen are expensive
            • wide range of tools required
            • long lead time between starting and finishing
            • high selling costs
      • batch production
        • to make more than one item at a time, goods are made in batches and can be switched over to make something else, e.g. bread factors makes more than just bread
          • advantages
            • production can be changed to meet customers needs or fluctuations in demand
            • standard production of items means it can be merchandised, less labour than job
            • employees specialise so become good at their job
            • lower skilled workforce means lower wages can be paid
          • disadvantages
            • small batches carry higher unit costs
            • workers may be less motivated with repetitive work
            • idle time between batches needs to be managed as this is wastage
      • flow production
        • production that is organised so that the items are made to flow around the factory in a continuous process until finished, e.g. a car manufacture, large quantities made, semi skilled staff used
          • disadvantages
            • high set up costs to buy the factory and machinery
            • low motivation of staff due to repetitive tasks
            • break downs and lost production can be costly
          • advantages
            • average costs are lower because high volumes being made = economies of scale
            • automated and computerised production means improved quality and complex designs can be made in shorter times
            • as production is continuous, stock and products don't need to be held - can use a JIT system
      • cell production
        • the production of items are organised into groups and then teams are set at workstations and see the product through to completion. workers with different skills are in each cell
          • disadvantages
            • may be tension in cells or between ells if competition
            • huge investment in machinery for each cell
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    • productivity is how efficient the worker is
    • production is the amount we make per workers per hours
    • efficiency is producing a level of output where average cost is minimised

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