production
process of adding value to a product using factors of production /
labour intensive
job or process that needs a lot of human work rather than machines.
capital intensive
job or process that needs a lot of machines and equipment than human work.
roles of operation department
-managing quality
-working with suppliers
productivity
how a business can measure its efficiency
productivity formula
quantity of output/quantity of input
ways to increase number of production
-using automation
-training workers
benefits of increasing productivity
-lower cost per unit
-fewer workers may be needed
why businesses hold inventory
-meet costumer demand faster
-protect against supply chain delays and shortage
re-order point
level of inventory at which businesses must order to avoid running out
lean production
business makes products in a way that saves time, reduces waste, and uses fewer resources.
common waste in businesses
overproduction
over-provcesing
benefits of lean production
better use of equipment
less money tide up
lean production techniques
-kaizen
-cell production
-just in tie inventory control
kaizen
continous improvemnt by eliminating waste
just in time
when a business makes or orders goods only when they are needed
cell production
task is split into small team of workers
methods of production
job
batch
flow
job production
one product is made at a time
j advantage
varied job
higher prices can be charged
j disadvatage
-time consuming
-cost of production is high
batch production
a group of product is made at a time
b advantage
-variety of products
-variety of jobs to worker
b disadvantage
expensive to produce goods
space is needed to store products
