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48 Cards in this Set
- Front
- Back
What is Job production? |
Where a business produces one product from start to finish before moving onto the next E.g. Instruments OR Wedding cakes Etc. |
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Features of Job production? |
Specialized, One-off & Labor intensive |
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Advantages of Job production? |
More interesting, More motivation & Specialized to suit customer requirements (High quality) |
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Disadvantages of Job production? |
More expensive & Time consuming |
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What is Batch production? |
Where a business makes a number (batch) of products to the same design or specification & then changes production to another product with differing specification E.g. Bakery products |
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Features of Batch production? |
Grouped produce & Mixture of labor & capital production |
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Advantages of Batch production? |
More produce, More efficient & faster production & Lower unit costs as production costs higher & workers can specialize |
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Disadvantages of Batch production? |
Less interesting, Less motivation & More complex machinery required |
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What is Continuous flow? |
When a large scale production of a product continuously is always being made |
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Features of Continuous flow? |
Large capital intensive & Large quantities & Standardized products |
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Advantages of Continuous flow? |
Very low unit costs (Economies of scale) & Rapid output |
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Disadvantages of Continuous flow? |
Huge set-up costs & Lower worker motivation (repetitive) & Breaks/Disruptions in production costly |
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Factors affecting method of production? |
Product, People, Size of market & Unit cost |
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Labor productivity calculation? |
Total output/No.of workers |
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Capital productivity calculation? |
Total output/Capital employed |
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What is Productivity? |
Amount of output produced in relation to the resources used |
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Labor cost per unit calculation? |
Total labor cost/No. of units |
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Methods of Improving labor productivity? |
Increasing labor flexibility & Improving working practices & Improved education & Training/Improved worker motivation |
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Methods of Improving capital productivity? |
Newer, better quality technology & Keeping the same product specification instead of changing constantly (wasting time) |
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What is Lean production? |
An approach to production aimed at reducing the quantity of resources used |
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What does Lean production achieve? |
Raises productivity, Uses less resources, Lowers costs & raises efficiency with same output amount produced & Reduces costs due to using less resources |
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Methods of Lean production? |
Kaizen & Just-In-Time (JIT) |
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What is Kaizen? |
Continuous improvement through the elimination of waste |
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Benefits of Kaizen? |
Increased productivity & Reduced amount of space needed for production process & work in progress reduced & Improved factory layout (Sanitation better) |
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Drawbacks of Kaizen? |
Possibility of redundancy (Less need for employees) & reliance on overtime cancelled (Employees reliance for extra money) |
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What is Just-In-Time (JIT) production? |
A production technique which is highly responsive to customer orders & uses very little stock holding |
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Benefits of JIT? |
Less waste, obsolete or damaged stock & Strong supplier links & Cash flow improved |
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Drawbacks of JIT? |
Huge supplier reliance & Higher ordering costs & Bulk buying advantage may be lost |
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How has new technology benefited the primary sector? |
Less inputs, more outputs & less time to produce & Less prone to faults (Less waste) & Genetic modification/cloning (Better & more produce) |
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Types of New technology in primary & Secondary sector? |
Computer-aided design (CAD) & Computer-aided manufacture (CAM) & Computer integrated manufacture (CIM) |
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Types of New technology in the tertiary sector? |
Electronic funds transferred at point of sale (EFTPOS, credit cards) & Electronic point of sale (EPOS, Tesco self-checkout) |
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New technology in production benefits? |
Productivity improved & Reduced labor costs |
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New technology in production Disadvantages? |
More redundancies & Expensive equipment installment |
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What is E-commerce w/ad&disad? |
Trading goods & services electronically (online) Ad: More variety & less effort (Quick & Easy) Disad: Delivery costs/times & unable to test product |
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What is Quality? |
Features of a product that allow it to satisfy customer requirements & A product can be deemed good quality, as long as it meets these expectations |
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Features of Quality? |
Appearance, Function(s), Reliability, Durability & Suitability (Etc.) |
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Traditional Quality Control (TQC) Disadvantages? |
Slow process, Constantly checking for problems & Wasteful as you only spot problems at the end of the production line |
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What is Total Quality Management (TQM)? |
Involves all employees being responsible for ensuring quality at all stages in the production process |
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Advantages of TQM? |
Reduces labor costs & Faster (Do not have to check solely at the end, relying on one individual) |
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Disadvantages of TQM? |
Huge reliability on employees; Possibility of more mistakes |
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What is Economies of Scale? |
Falling average costs due to the expansion & Increase of production |
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What are Internal economies of scale? |
The cost benefits that a business enjoys when it expands |
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What are External economies of scale? |
The cost benefits that all the businesses in the industry enjoy when the industry expands |
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Internal economies of scale? |
Financial (Banks & Selling shares, No interest) as better reputation than smaller ones). Purchasing (Save money bulk buying). Managerial (Save costs by employing specialists). Technical (Save costs as quicker & remover labor costs |
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External economies of scale? |
Availability of skilled labor (If industry concentrated in one are, could be significant labor build up w/skills & experience) E.g. Hollywood (Lower average costs as they locally advertise). Location/Concentration of a business (Domination of a region or not) E.g. Dallas's Oil industry (Lower advertisement costs as high competition, enabling lower prices) |
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What is Dis-economies of scale? |
Rising average costs when a firm becomes too big & strained |
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Reasons for Dis-economies of scale? |
Bureaucracy; Overwhelming resources used in administration. Alienation; Co-worker relationship deterioration leading to unmotivated and under-performing staff. Communication; Contact difficulties, posing issues for business operations |
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Average Cost calculation? |
Total Cost/Output |