Business- Method of Production Definitions

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  • Created by: EllN1
  • Created on: 22-09-16 17:13
What is production?
process of using resources and adding value to them to make a product or provide a service that customers want to buy
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What is transformation?
Where a set of inputs such as raw materials is turned into outputs such as finished goods
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What is added value
What the business achieves by ensuring the price of the finished good is more than the cost of the inputs
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Job production
Method used for production of specific one off items
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Batch production
Method used when many similar items are produced together. Each batch goes through one stage of the process before moving onto another
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Flow production
Method used for mass produce items that are standardised in shape, size and characteristics
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What is division of labour?
Breaking the production processes into stages with workers specialising in particular tasks
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What is capital intensive?
Where production relies heavily on machinery. Emphasis on producing large quantities
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What is labour intensive?
where production relies heavily on labour. Empahisis on quality rather than quantity
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Other cards in this set

Card 2

Front

What is transformation?

Back

Where a set of inputs such as raw materials is turned into outputs such as finished goods

Card 3

Front

What is added value

Back

Preview of the front of card 3

Card 4

Front

Job production

Back

Preview of the front of card 4

Card 5

Front

Batch production

Back

Preview of the front of card 5
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