Business Studies - Section Five (Production)

Front 1

What is Job production?

Back 1

Where a business produces one product from start to finish before moving onto the next E.g. Instruments OR Wedding cakes Etc.

Front 2

Features of Job production?

Back 2

Specialized, One-off & Labor intensive

Front 3

Advantages of Job production?

Back 3

More interesting, More motivation & Specialized to suit customer requirements (High quality)

Front 4

Disadvantages of Job production?

Back 4

More expensive & Time consuming

Front 5

What is Batch production?

Back 5

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

Front 6

Features of Batch production?

Back 6

Grouped produce & Mixture of labor & capital production

Front 7

Advantages of Batch production?

Back 7

More produce, More efficient & faster production & Lower unit costs as production costs higher & workers can specialize

Front 8

Disadvantages of Batch production?

Back 8

Less interesting, Less motivation & More complex machinery required

Front 9

What is Continuous flow?

Back 9

When a large scale production of a product continuously is always being made

Front 10

Features of Continuous flow?

Back 10

Large capital intensive & Large quantities & Standardized products

Front 11

Advantages of Continuous flow?

Back 11

Very low unit costs (Economies of scale) & Rapid output

Front 12

Disadvantages of Continuous flow?

Back 12

Huge set-up costs & Lower worker motivation (repetitive) & Breaks/Disruptions in production costly

Front 13

Factors affecting method of production?

Back 13

Product, People, Size of market & Unit cost

Front 14

Labor productivity calculation?

Back 14

Total output/No.of workers

Front 15

Capital productivity calculation?

Back 15

Total output/Capital employed

Front 16

What is Productivity?

Back 16

Amount of output produced in relation to the resources used

Front 17

Labor cost per unit calculation?

Back 17

Total labor cost/No. of units

Front 18

Methods of Improving labor productivity?

Back 18

Increasing labor flexibility & Improving working practices & Improved education & Training/Improved worker motivation

Front 19

Methods of Improving capital productivity?

Back 19

Newer, better quality technology & Keeping the same product specification instead of changing constantly (wasting time)

Front 20

What is Lean production?

Back 20

An approach to production aimed at reducing the quantity of resources used

Front 21

What does Lean production achieve?

Back 21

Raises productivity, Uses less resources, Lowers costs & raises efficiency with same output amount produced & Reduces costs due to using less resources

Front 22

Methods of Lean production?

Back 22

Kaizen & Just-In-Time (JIT)

Front 23

What is Kaizen?

Back 23

Continuous improvement through the elimination of waste

Front 24

Benefits of Kaizen?

Back 24

Increased productivity & Reduced amount of space needed for production process & work in progress reduced & Improved factory layout (Sanitation better)

Front 25

Drawbacks of Kaizen?

Back 25

Possibility of redundancy (Less need for employees) & reliance on overtime cancelled (Employees reliance for extra money)

Front 26

What is Just-In-Time (JIT) production?

Back 26

A production technique which is highly responsive to customer orders & uses very little stock holding

Front 27

Benefits of JIT?

Back 27

Less waste, obsolete or damaged stock & Strong supplier links & Cash flow improved

Front 28

Drawbacks of JIT?

Back 28

Huge supplier reliance & Higher ordering costs & Bulk buying advantage may be lost

Front 29

How has new technology benefited the primary sector?

Back 29

Less inputs, more outputs & less time to produce & Less prone to faults (Less waste) & Genetic modification/cloning (Better & more produce)

Front 30

Types of New technology in primary & Secondary sector?

Back 30

Computer-aided design (CAD) & Computer-aided manufacture (CAM) & Computer integrated manufacture (CIM)

Front 31

Types of New technology in the tertiary sector?

Back 31

Electronic funds transferred at point of sale (EFTPOS, credit cards) & Electronic point of sale (EPOS, Tesco self-checkout)

Front 32

New technology in production benefits?

Back 32

Productivity improved & Reduced labor costs

Front 33

New technology in production Disadvantages?

Back 33

More redundancies & Expensive equipment installment

Front 34

What is E-commerce w/ad&disad?

Back 34

Trading goods & services electronically (online)

Ad: More variety & less effort (Quick & Easy)

Disad: Delivery costs/times & unable to test product

Front 35

What is Quality?

Back 35

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

Front 36

Features of Quality?

Back 36

Appearance, Function(s), Reliability, Durability & Suitability (Etc.)

Front 37

Traditional Quality Control (TQC) Disadvantages?

Back 37

Slow process, Constantly checking for problems & Wasteful as you only spot problems at the end of the production line

Front 38

What is Total Quality Management (TQM)?

Back 38

Involves all employees being responsible for ensuring quality at all stages in the production process

Front 39

Advantages of TQM?

Back 39

Reduces labor costs & Faster (Do not have to check solely at the end, relying on one individual)

Front 40

Disadvantages of TQM?

Back 40

Huge reliability on employees; Possibility of more mistakes

Front 41

What is Economies of Scale?

Back 41

Falling average costs due to the expansion & Increase of production

Front 42

What are Internal economies of scale?

Back 42

The cost benefits that a business enjoys when it expands

Front 43

What are External economies of scale?

Back 43

The cost benefits that all the businesses in the industry enjoy when the industry expands

Front 44

Internal economies of scale?

Back 44

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

Front 45

External economies of scale?

Back 45

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)

Front 46

What is Dis-economies of scale?

Back 46

Rising average costs when a firm becomes too big & strained

Front 47

Reasons for Dis-economies of scale?

Back 47

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

Front 48

Average Cost calculation?

Back 48

Total Cost/Output