what is productivity
the input per output per hour of a product (how efficient input is changed to output)
what is production
the output produced
name the 4 types of production
job, batch, flow, cell
what is job production pros and cons
meaning: making a product one at a time
pros: unique, bespoke, motivating workers by seeing a product start to finish,
cons: skilled labour is expensive, hard to speed up if demand increases, wide range of tools required
what is batch production pros and cons
meaning: goods are made in batches/bulk to make more than one product at a time, can be changed to make something different one one production line
pros: production can be changed to meet demand, mechanised, lower skilled workforce=lower wages
cons: small batches carry higher average unit costs, repetitive, increased wastage between batches
what is cell production pros and cons
meaning: production is divided up into different stages
pros: reduced bottlenecks, wastage is reduced, increased worker commitment
cons: machinery is costly, staff must supervise, expanding may be difficult due to limited space
what is flow production pros and cons
meaning: production lines with continuous movement of items through a process
pros: larger quantities means buying in bulk saves money, can use just in time system, automated means better quality
cons: high costs to buy machinery, break downs can be costly, repetitive
what is quality
the ability a product meets its function and customer needs
what is quality control
checking the quality of a product after its created
what is quality assurance
checking quality throughout the process of creating it
what is total quality management
where quality is one of the top business priorities / is the heart of the business
what is capacity utilisation
the amount a company uses its resources to its advantage
how to improve capacity utilisation
increase demand through promotion, make staff redundant, sell assets, moving to a cheaper premises
what is capacity underutilisation
a business is not operating at full or maximum capacity
what is capacity over utilisation
a business produces products beyond its capacity
what is stock control
the control of a businesses stock
what are buffer stocks pros and cons
stocks that are held in case their is an unexpected rise in demand or problem with supply
pros: helps if there’s a surge in demand, useful if supplies aren’t delivered on time,
cons: products may become perishable or adolescent overtime, cost of rent for premises
stock out costs
loss of customer goodwill, damage to reputation, disruption to production, loss of sales revenue
just in time pros and cons
meaning: delivering stocks just before is used
pros: no wastage, cost saving of premises and staff, stock is less likely to perish, improved cash flow
cons: can’t meet unpredicted surges in demand, can’t replace damaged goods, risk of delivery not arriving
what is waste
an activity the customer doesn’t value and isn’t willing to pay for
what are the 7 deadly wastes
- overproduction
- waiting time
- transportation time
- excess processing
- excess stock
- excess motion
- product quality
what is lean production
cuts out waste while maintaining quality
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theme 1 - marketing49
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theme 1 - managing people51
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theme 2 - finance37
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theme 2 - resource management22
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theme 2 - external influences23
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theme 3 - business decisions and strategy (3.1/3.2/3.3)78
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theme 3 - business desicions and strategy (3.4/3.5/3.6)62
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theme 4 - global businesses - 4.135
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theme 4 - global businesses - 4.2 & 4.335
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theme 4 - global businesses - 4.421
