PRODUCTION REVISION QUESTIONS PART 1

What is Production ?

Production is when a business makes a product i.e. it manufactures/ creates something

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What are the 4 methods of Production?

Job Production, Batch Production, Flow/Continuous Production and Process Production

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What is Job Production ?

Making 1 unique product from start to finish

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list an advantage of Job Production

Products are usually high quality

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list an advantage of Job Production

Made to meet the needs of individual customers

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list an advantage of Job Production

Organisation is simple as only 1 job is done at a time

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list an advantage of Job Production

A wide variety of tasks often means that work is more interesting & therefore motivation is high

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list an advantage of Job Production

Workers often get more satisfaction from working on something until its finished

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list a disadvantage of Job Production

High Labour Costs- as workforce needs to be skilled

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list a disadvantage of Job Production

The business doesn't get paid until it has finished the job. may take a while to complete the job.

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list a disadvantage of Job Production

High Production Costs- due to the variety of tasks a range of machinery needs to be purchased

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What is Batch Production?

Items are produced in large batches of similar items. The business will make one type of product for a while and then change to another type before switching back

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list an advantage of Batch Production

The needs of different customers can be met by making batches of different goods

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list an advantage of Batch Production

Might only need Semi-skilled workers- these get paid less

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list an advantage of Batch Production

Possible to use automation and machinery

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list a disadvantage of Batch Production

It takes time to switch production from a batch of one product to be a different batch. Machinery may need to be reset etc

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list a disadvantage of Batch Production

Careful planning is needed to avoid machinery & people becoming idle

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list a disadvantage of Batch Production

The tasks can be repetitive and boring for the workers

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list a disadvantage of Batch Production

It may be necessary to keep stocks of materials and components to be able to switch production when required. Holding stocks cost money.

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What is Flow/Continuous Production ? (also called mass production)

Continuous production of identical items: each unit moves from one operation to the next without waiting for a batch to be completed. this method of production uses an assembly line

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list an advantage of Flow/ Continuous Production

Often called Mass Production- excellent to produce large amounts of products quickly.

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list an advantage of Flow/ Continuous Production

Reduced labour costs as you only need a semi skilled workforce

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list an advantage of Flow/ Continuous Production

Possible to automate the processes using machines this keeps the running costs low

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list an advantage of Flow/ Continuous Production

Can quickly respond to changes in demand

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list a disadvantage of Flow/ Continuous Production

High set up costs- machinery

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list a disadvantage of Flow/ Continuous Production

Can only produce standard products

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list a disadvantage of Flow/ Continuous Production

Jobs on a assembly line can be repetitive and boring

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list a disadvantage of Flow/ Continuous Production

Large stocks of materials need to be kept to keep the production line supplied and this may be expensive

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What is Process Production?

Involves a series of automated processes which, when applied to a variety of raw materials results in a large quantity of finished product

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list an advantage of Process Production

Large amounts can be made

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list an advantage of Process Production

Most processes can be automated to allow production costs to be kept low

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list a disadvantage of Process Production

It is very expensive to set up a process system of production

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list a disadvantage of Process Production

A problem with one part of the production process stops the whole process

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What is Value Added ?

Value Added refers to the difference between the price of the finished product/ service and the cost of the inputs involved in making it. Therefore value added is the increase in value that a business creates by undertaking the production process

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list some ways to add value

build a brand, deliver excellent service, product features and benefits and offering convenience

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Explain how Building a brand can add value

a reputation for quality, value are what customers are prepared to pay for

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Explain how Delivering excellent service can add value

high quality, attentive personal service can make the difference between achieving a high price or a medium one

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Explain how Product features and benefits can add value

for example, additional functionality in different versions of software can enable a software seller to charge higher prices; different models of motor vehicles are designed to achieve the same effect

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Explain how Offering convenience can add value

customers will often pay a little more for a product that they can have straightaway, or which saves them time

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To compete in a competitive business environment (market) businesses need to maximize what?

the value they add to their products. The more competitive the market you are in the more pressure you are under to add value.

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A business that is adding substantial value must be what?

operating profitably. Findings ways to add value is a really important activity for a start-up or small business- it can make the difference between survival and failure; between profit and less

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