Production

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What is meant by mark-up?
The amount added to the cost price of goods to cover overheads and profit.
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How do you calculate the selling price of a product?
SP=CP+PROFIT
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What is the cost price?
The production process
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What is a product orientated business?
Developing of the product, creates the demand for the product
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What does a product orientated business include?
High advertisement and promotional costs
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What is a market orientated business?
It involves carrying out market research, then developes the product to suit the needs of the customer
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What does a market orientated business include?
High market research and promotional costs and some advertisement
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What is capital intensive?
Plant and machinery (computers/robotics)
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What does labour intensive mean?
The work of individuals e.g. Holiday company
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What is job production?
When a single item is produced at a time. It is to create unique products.
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What is batch production?
It is when a number of products are produced at the same time. Usually products are identical.
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What is flow production?
It is where identical, standardised items are produced on an assembly/production line.
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Is job production capital or labour intensive?
Labour intensive
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Is batch production capital or labour intensive?
Capital intensive
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Is flow production capital or labour intensive?
Capital intensive
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Is job production a mass or niche market?
Niche market
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Is batch production a mass or niche market?
Mass market
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Is flow production a mass or niche market?
Mass market
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What is meant by division of labour?
Where employees specialise in what they do best
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What is meant by mass customisation?
Flow production methods where you take the same products and make them unique
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What is lean production?
When a business aims to avoid waste by making efficient use of a companys key resources
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What is meant by the term JIT (Just In Time)?
They have a little buffer stock just in case
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What is meant by the term TQM (Total Quality Management)?
Ensuring every employee puts in a great amount of effort to each product
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What is meant by the term Cell production?
How a group of employees are positioned to work efficiently within the business
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What is meant by the term multi-skilled workers?
Where the business trains employees to be multi-skilled within the company
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What are the two factors to multi-skilling?
Job enrichment+Job enlargement
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What is meant by job enrichment?
A management concept to move employees around to different areas to make them more challenging
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What is meant by job enlargement?
A job design technique in which the number of tasks is increased to add greater variety to activities
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How do you measure labour productivity?
Output (in a certain time)/Number of employees (during the same time)=no. of products per employee
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How to calculate the average cost per unit
Total cost/Output
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Stock turnover ratio
Cost of sales/Average stock=No. of times
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Card 2

Front

How do you calculate the selling price of a product?

Back

SP=CP+PROFIT

Card 3

Front

What is the cost price?

Back

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Card 4

Front

What is a product orientated business?

Back

Preview of the front of card 4

Card 5

Front

What does a product orientated business include?

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