Producing Goods And Services

Front 1

Job Production

Back 1

One off, individual items eg building

Front 2

Batch Production

Back 2

Occurs when many similaritems are produced together. Each batch goes through one stage of theproduction process before moving onto next stage

Front 3

Flow Production

Back 3

Same item made continuously eg bottles

Front 4

Just in Time Adv

Back 4

Lowerstock holding means a reduction in storage space which saves rent and insurancecosts There isless likelihood of stock perishing, becoming obsolete or out of date

Front 5

Just in Time Dis

Back 5

There islittle room for mistakes as minimal stock is kept for re-working faulty product

Productionis very reliant on suppliers and if stock is not delivered on time, the wholeproduction schedule can be delayed

Front 6

Buying in Bulk Adv

Back 6

Stock usually available – not heldup by delays in delivery

Bulk purchases – discounts available – lower prices – lower costs

Front 7

Buying in Bulk Dis

Back 7

Need to find storage – warehousingcan be expensive

Downturn in business means highcost if materials not needed – cannot be resold – will not get outlay back

Front 8

Improving Quality

Back 8

Training staff to ensure they work at a highquality and become specialised·

Ensuring they have good suppliers so materialsare best quality.Useof better technology in the production process

Front 9

Quality Control

Back 9

The process of inspecting products to ensure that they meet the requiredquality standards

Front 10

Quality Assurance

Back 10

Employees 'self-checking', rather thanchecking by inspectors

Front 11

Acquisition

Back 11

Takeover of a business

Front 12

Horizontal Integration

Back 12

This is when a business takes over a similar business at a similarstage of production

Front 13

Vertical Backwards Integration

Back 13

Takeover your suppliers

Front 14

Diversification Adv

Back 14

You can spread the risk as if sales of oneproduct isn’t going well you can rely on the other products to do well·

Access to a wider range of customers who mightbe in a new market for you to increase your reputation and brand awareness.

Front 15

Diversification Dis

Back 15

Lack of experience in that area –could make mistakes/costly to hire experienced staff.

Ifone area fails – could harm the whole brand image.

Front 16

Economies of Scale

Back 16

Purchasing

Managerial

Marketing

Technical

Financial

Front 17

Selling Abroad Adv

Back 17

Bigger market, more potential customers inworldwide market leading to higher sales, and greater profits.

Wider range of customers, from various marketsegments. so can spread risk if onegroup of customers isn’t selling well ·

Front 18

Selling Abroad Dis

Back 18

Higher transport costs, products sent overgreater distance/longer time. · Language problems, in trading, translationcosts. · Currency conversion, costs, and exchange ratechanges

Front 19

European Union Adv

Back 19

Free Trade

Bigger marketplace

Front 20

Job Production Adv

Back 20

Meets thecustomer’s exact needs and the quality is likely to be higher because itrequires specialized skills.

Front 21

Batch Production Adv

Back 21

Reduces costs as you have specialized machineryand can produce in different sizes to meet customer needs.

Front 22

Flow Production Dis

Back 22

If one thinggoes wrong then you affect lots of the products. It also is very demotivatingfor staff doing a repetitive job.

Front 23

Consumer Good

Back 23

Sold to a customer tobe used by a consumer

Front 24

Producer/Capital Good

Back 24

Bought by a businessto be used to produce other goods or services during acertain period of time eg machinery