Business unit 2 CHAP 10

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what is flow production
*** product / making products continuously to make as many identical products as possible., workers perform set tasks as the product travels on the production line
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Why use flow production
to be efficient as possible, there no stoppages (24h) and to gain economies of scale so unit costs are low to allow competitive pricing
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Features of flow production
used for mass market products (chock bars/phones, TVs) use mainly robots so theres less need to hold stock, it makes stanadardised/identical products - only diff colours and sizes possible
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advantages of specialisation
much faster work to be done, makes production more efficient, uses vision of labour,
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why flow production is good for workers
they can play to their strengths, faster work can be done, kills are improved and become more efficient,
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disadvantage of division labour / flow production
workers bored and low job satisfaction, leads to poor quality and motivation
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why is poor quality unacceptable in flow production
poor quality in one product could halt the entire production process - time consuming and costly
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what is lean production
using fewer resources and suing them more efficiently, using less space, material , stock, time and labour to avoid rising costs and gain more profit
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kaizen
continuous improvement / involving and encouraging workers to makee suggestions for small and frequent improvements and this will lead too a huge increase in efficiency
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Just in time advantages
Close w suppliers,Improves efficiency of cash flow,keeps stock levels to a min which saves money, stock arrives immediately before used and saves warehouse space meaning less warehouse workers are needed, money saved can be invested backing business
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disadvantage of JIT
STRESSFUL - Verge of running out of stock, more expensive to buy smaller orders, customers have to wait and requires v reliable supplier and transport
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Benefits of growing business
greater market share and revenue, reduction in unit cost, bulk buying, technical economies, specialist managers improve efficiency, financial economies - more likely to be given loan
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Drawback of large business
poor communication as organisational structure has more levels so messages may arrive late/distorted
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drawback of large business
poor motivation - workers feel uninvolved and unvalued --- low productivity
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drawback of large business
poor co ordination - more operations, managers and workers - conflicting decisions
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causes of quality issues
poorly motivated workers, no responsibility, lack of consistency, outsourcing, inspection costs
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poorly motivated workers
Will give bad customer service therefore a bad rep for the business
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no responsibility
goods could fail the Quality test if no one is responsible for the quality
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lack of consistency
a shop with many branches may fail to give consistent quality customer service
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outsourcing
outsourcing firms may not work to the same standard so quality checks are needed and this increases inspection costs
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inspection costs
checking quality standards are met regularly - misery shopper/qualit inspectors
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how to maintain consistent quality
setting agreed quality quality standards after customer expectations are known, banks set a max waiting time and fats food set a max time for food to be delivered
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TQM
Involve all employees to quality improvement process, quality is everyones responsibility, reduces cost by cutting down waste, increased motivation due to involvement, workers need training to have responsiblity, could demotivate due to extra work
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Other cards in this set

Card 2

Front

Why use flow production

Back

to be efficient as possible, there no stoppages (24h) and to gain economies of scale so unit costs are low to allow competitive pricing

Card 3

Front

Features of flow production

Back

Preview of the front of card 3

Card 4

Front

advantages of specialisation

Back

Preview of the front of card 4

Card 5

Front

why flow production is good for workers

Back

Preview of the front of card 5
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