2.3

• What is production in a business context?

  Transformation of resources into finished goods
• What are goods?

  Physical products like bicycles and T-shirts
• What are services?

  Non-physical items like hairdressing
• What factors influence the method of production used by a business?

  Output level, product nature, and automation
• What are the main methods of production?

  1. Job Production
  2. Flow Production
  3. Batch Production

  
• What is job production?

  Producing one product at a time as ordered
• What are the advantages of job production?

  High quality, motivated workers, customized products
• What are the disadvantages of job production?

  Slow production and high labor costs
• What is flow production?

  Continuous manufacturing of standardized products
• What are the advantages of flow production?

  Low unit costs and rapid production
• What are the disadvantages of flow production?

  Difficulty in customization and high capital costs
• What is batch production?

  Producing groups of the same product at a time
• What are the advantages of batch production?

  Worker specialization and simultaneous production
• What are the disadvantages of batch production?

  Requires careful coordination and stock storage
• Why does Blush Cosmetics use batch production?

  To manufacture varied products in groups
• What is flexibility in production?

  Ease of switching machinery for different products
• How does 3D printing impact production flexibility?

  It allows easy customization of products
• What is the lead time in stock management?

  Time from ordering stock to delivery
• What is the maximum stock level?

  Maximum amount of stock a business can hold
• What is the reorder level?

  Level at which a new order is placed
• What is the minimum stock level?

  Lowest level stock can fall to
• What is just in time (JIT) stock management?

  Ordering materials as needed, not stored
• What factors influence the efficiency of raw material procurement?

  1. Quality
  2. Delivery
  3. Availability
  4. Costs
  5. Trust

  
• Why is quality important in raw material procurement?

  Poor quality affects final product standards
• Why is delivery important in raw material procurement?

  Ensures materials arrive on time and reliably

  
• Why is availability important in raw material procurement?

  Ensures steady supply of necessary materials
• Why are costs critical in raw material procurement?

  Ensures best price without sacrificing quality
• Why is trust important in raw material procurement?

  Ensures reliable suppliers deliver quality materials
• What is the impact of traditional manufacturing processes on costs?

  They require expensive tooling and machinery
• How does 3D printing affect productivity?

  Reduces lead times and speeds up production
• How does 3D printing affect product quality?

  Allows precise production of complex designs
• How does 3D printing enhance flexibility?

  Enables customization and small production runs
• What is the significance of the stock level line in a stock control diagram?

  Shows changes in stock levels over time

  
• What happens to the stock level line when an order is delivered?

  The stock level line shoots upwards
• What is the reorder quantity?

  Difference between maximum and minimum stock levels

  
• What is the lead time for kitchen shelving units in the example?

  Two days for delivery
• What is the minimum stock level for kitchen shelving units?

  200 units
• What is the reorder level for kitchen shelving units?

  500 units
• What is the reorder quantity for kitchen shelving units?

  800 units
• What is the lead time for kitchen shelving units?

  Two days