PRODUCTION & PRODUCTIVITY

• What is production?

  the transformation of resources into a final product
• What is job production?

  a method of production that involves employing all factors to complete one unit of output at a time
• What is batch production?

  a method that is used when demand grows, involving completing one operation at a time on all units before performing the next
• LARGER PRODUCTION RUNS TEND TO LOWER THE UNIT OR AVERAGE COST OF PRODUCTION
• What is flow production?

  a large-scale production of a standard product, where each operation on a unit is performed continuously one after another, usually on a production line. It results in lower unit costs
• When can flow production be used?

  when a business can sell huge quantities of output into a mass market
• What is process production?

  a form of flow production where materials pass through a plant and a series of processes are carried out in order to change the product
• What is labour-intensive production?

  production methods that make more use of labour
• What is capital-intensive production?

  production methods that make more use of machinery