2.3

• what is job production

  the manufacturing of a single, unique product made to the specific requirements of the customer
• what is batch production

  this is used to make sets of identical products in batches. Once one batch has been produced, modifications are made to the production process so that a different batch of products can be produced
• what is flow production

  this is also known as a mass production. It involves products travelling down a production line, often using robotics. The products will be identical and manufactured in large quantities
• what are the advantages of job production

  • can charge more which leads to higher profit margins
  • meets customers exact requirements
  • it's unique and more care is taken
  • can specify measurements
  • high quality
  • motivated workers as they see the product from start to finish
  • workers are more productive
• what are disadvantages of job production

  • time consuming as the product takes longer to produce
  • skilled labour is required which can be expensive
  • products can take a long time to produce
• what are the advantages of batch production

  • some flexibility as the process can be changed
  • production can be changed to meet customer needs or changes in demand
  • less labour involved as production can be automated
  • faster than job production so it has higher productivity
• what are the disadvantages of batch production

  • workers may be less motivated with repetitive work
  • time between batches has to be managed as this is wastage because work stops while the machines are changed to make next product
  • if one batch takes too long, all other batches will be held up
  • there is a greater cost per item than flow production
• what are the advantages of flow production

  • business can make larger quantities
  • business can bulk buy raw materials
  • business can use robots that are efficient
  • business can use JIT (just in time) system
• what are the disadvantages of flow production

  • expensive to set up due to cost of machinery
  • repetitive work may mean low motivation for workers
  • break down on the production line stops all production
  • inflexible as it is hard to change factory machinery to make different products as it is set up to make just one product
• what is economies of scale

  as a business grows, it can experience economies of scale - this is when the average unit cost of a product falls
• what is JIT system

  just in time processes focus on producing exactly the amount you need at exactly the time your customer needs it
• what impacts do technology have on production

  • lower costs
  • increased productivity
  • improved quality
  • further flexibility
• how does technology lead to lower costs of production

  in the short term, investment is high as machinery and factory set up is expensive but in the long term, cost savings will come from lower labour costs and improved quality so less wastage
• how does technology lead to increased productivity

  machines and robots work autonomously, unlike workers who needs breaks, holidays and time off
• how does technology lead to improved quality

  computer aided design (CAD) is precise and machine and robots reduce mistakes that can be made by human error
• how does technology leads to further flexibility

  computer aided manufacture (CAM) allows for adjustment in processes to make a variety of products, providing more flexibility for businesses and more choices for customers
• what is a bar gate diagram

  a diagram that helps a business to plan when to order more stock
• why can't a business just hold more stock

  • perishable products may go out of date
  • high stock holding is expensive
  • they may not have enough space
  • makes it more difficult to compete on price due to stock holding costs
• what is the maximum stock level

  the total amount of stock a business can hold at a time
• what is the minimum stock level

  also known as a buffer stock, it is the lowest amount of stock a business should hold
• what is the re order level

  the point at which stock will be ordered - this leaves you with sufficient stock during lead time
• what is lead time (delivery time)

  how long it takes stock to arrive
• how do you work out the lead time

  the difference between the re-order level (in weeks/days) and the minimum stock level (in weeks/days)
• what is order quantity

  the number of units ordered
• what is just in time

  stock control used by businesses that hold no stock as raw materials are ordered as they are needed and are used straight away on the production line once they arrive
• what must a business have for JIT to work

  a good relationship with its supplier and a well organised production system so it knows precisely when and what to order
• what is JIC

  just incase where a business has a warehouse full of stock
• what are the advantages if JIT

  • cost of holding stock is reduced
  • good cash flow as money is not tied up in stock
  • less chance of stock being damaged, spoiled, stolen or becoming obsolete
  • there is no wastage
  • parts are not warehoused which is a massive cost of saving in terms of staff and premises
• what are the disadvantages of JIT

  • will not receive bulk buying discounts
  • if delivery doesn't turn up in time, this can stop the whole production line which is costly
  • the business is less able to meet sudden surges in demand or large one off orders
• what is procurement

  the term used to describe the process of a business goes through in finding and obtaining the right materials and supplies to be used in the production process. If a business can find the right supplier, then the process can become more efficient
• what does logistics mean

  getting goods or services from one part of the supply chain to another
• if procurement and logistics are effective, this would result win a supplier that

  • will supply the best quality materials at the best possible price
  • will be quick, flexible and reliable in delivery time so a business can avoid stoppages in production
  • has the material a business needs in stock
  • will negotiate prices so that the business can make cost savings particularly when buying in bulk or for having a long standing relationship
• what is quality

  the measure of excellence or a state of being free from defects, deficiencies and significant variations or more importantly how good/bad/well made a product is
• what is quality control

  inspections on products to ensure the standards have been met at the end of the production process. It ensures the quality standards are met and the customer doesn't receive a sub standard product
• what is quality assurance

  how a business can design the way a product or service is produced or delivered to minimise the chances that the final product will be free from defects or is sub standard. It's what the business can do to prevent this
• when does quality control occur in a production line

  at the end
• what does quality control include

  inspection, testing and sampling
• quality control is mainly about detecting faulty output rather than preventing it
• when does quality assurance occur in a production line

  throughout the production of products and is built into the production process
• what are some negatives of quality assurance

  • more time consuming for the workers
  • each worker may have different standards therefore there is no consistency