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Manufacture of a limited number of identical products. Every item in the batch is completed before they move onto the next step of production.

Capital is used in production.

Output per capital input = Total output in a given time period

Qty or value of capital employed

Fully known as cellular production, is a form of flow production, but the flow production system is separated into a number of self-contained mini-production units, known as a cell.

When businesses in the same industry are located in the same region - benefits customers and suppliers.

The manufacture of a product using a continuous production line. Used for mass production - a conveyor belt continuously moves.

Producing one unit at a time. Often used for one-off customised products for each customer.

Labour is used in the production process.

Output pr worker = Total output in a given time period

Qty of labour employed

A process that combines the latest technology with multi-skilled labour forces to to use production lines to make a range of varied products.

Inputs are converted or transformed into outputs.

Inputs: Resources

Land

Labour

Capital

PRODUCTION PROCESS

Outputs: Finished goods

Services

Components for other firms

The difference between the cost of components and the price charged for the finished product.

Analysis of the main features of a product to see if the same performance and style can be achieved at a lower cost.