3.3.1 - Production Processes

• What is production?

  Production is the process of forming raw materials into goods and services that can be sold.
• What does methods of Job production refer to?

  Methods of production refer to how a product is produced to meet specific customer requirements.
• What is a benefit of job production?

  High-quality production allows higher prices to be charged.
• How can job satisfaction affect employees in production?

  Job satisfaction and variety of work will motivate employees.
• What is a Unique Selling point(USP)?

  A Unique Selling point (USP) differentiates a product from rivals.
• What does efficiency measure in production?

  Efficiency measures how well a business uses its resources to make products or provide services.
• How can a business increase efficiency?

  A business can increase efficiency by increasing output using the same amount of resources.
• What is the average unit cost?

  The average unit cost is calculated by the cost of producing one product or unit.
• What factors can affect production efficiency?

  Factors include employee motivation, skills of managers, quality of suppliers, and investment in technology.
• What is lean production and what does it aim to reduce?

  • Lean production aims to reduce waste during the production process.
  • Waste includes:
  • Unsold products
  • Time wasted due to delays
  • Faulty products needing rework
  • Damaged or stolen stock
  • Excess stock that incurs storage costs
• What is flow production also known as?

  Flow production is also known as mass production.
• What is flow production?

  Flow production occurs when a business makes large numbers of identical products on a continuous production line.
• What is a disadvantage of flow production?

  A disadvantage of flow production is that jobs are repetitive and can lower motivation.
• What is a benefit of flow production compared to job production?

  Flow production has lower unit costs than job production.
• What is a drawback of using lower-skilled workers in flow production?

  Using lower-skilled workers can lead to lower quality products, but lower cost
• What is the impact of high initial costs of machinery in flow production?

  High initial costs of machinery can be expensive for the business
• How does division of labor benefit flow production?

  Division of labor allows the production line to operate 24/7.
• What is the relationship between efficiency and average unit cost?

  The lower the average unit cost, the more efficient the business is.
• What types of waste does lean production aim to eliminate?

  Lean production aims to eliminate waste such as unsold products and time wasted due to delays.
• What happens to faulty products in lean production?

  Faulty products that have to be re-made are considered waste in lean production.
• What is the cost implication of holding too much stock?

  Holding too much stock costs money to be stored.
• The production process is important because it determines how efficiently and effectively products can be made, which affects costs and quality.
• Production processes are the methods used to produce goods or services.
• What is lean production?

  Management that aims to reduce waste during the production process
• Whta are two key lean production methods?

  Kaizen and just in time (JIT) production
• What does JIT stand for in stock control?

  Just-In-Time
• What is the main principle of JIT stock control?

  Businesses do not store raw materials but receive them as needed
• How does JIT stock control affect buffer stock levels?

  Buffer stock is not needed in JIT stock control because the materials aren't stored - they only bring what is needed before its existing materials run out
• What type of relationship do businesses need with their suppliers for JIT to work effectively?

  They need a good relationship, ideally with local suppliers
• What are the benefits of JIT stock control for businesses?

  It reduces storage costs, waste, and improves cash flow, stock levels can be kept to a minimum
• What is a potential risk of using JIT stock control?

  Businesses are vulnerable to disruptions in transport, reliant on a good relationship with suppliers, benefits from bulk buying may be lost
• What are some benefits of implementing Kaizen?

  It improves quality, efficiency, and staff retention
• What is Kaizen in the context of business processes?

  Kaizen refers to continuous improvement in business processes
• What is a challenge associated with implementing Kaizen?

  It can be difficult to implement without proper training
• What does lean production focus on?

  Lean production focuses on cutting out waste while ensuring quality
• How can industrial action affect a business using JIT?

  It can be damaging as there will be no spare stock
• What is the role of employee motivation in Kaizen?

  Employees need to be motivated and committed to improving the business
• Why is training important in lean production?

  Employees need to check quality at every stage to avoid waste
• What is the importance of collaboration between managers and employees in lean production?

  They need to work together to ensure lean methods are carried out correctly
• What is buffer stock?

  Buffer stock is a minimum stock level held to reduce the risk of running out