Production processes

• What is the purpose of business operations?

  To provide goods and services to customers
• How do production costs affect competition among businesses?

  Lower production costs allow competitive pricing
• What factors influence the ability to keep production costs low?

  The production processes and technology used
• What does the term 'business operations' refer to?

  The part of the business providing goods or services
• What resources are used in business operations?

  Raw materials, finance, and workforce
• What is the role of operations in creating finished goods?

  To use resources to create and deliver products
• What are goods in the context of business operations?

  Products that can be touched
• How are operations defined for services?

  Processes used to provide intangible services
• What is the purpose of quality control in operations?

  To ensure customers are happy with services
• What are the key components of business operations?

  • Providing goods and services
  • Using resources (raw materials, finance, workforce)
  • Creating finished goods or services
  • Ensuring timely delivery and quality standards
• How do operations differ between goods and services?

  • Goods: Involves production in factories
  • Services: Involves processes for intangible offerings
• What must production costs be kept low to compete with?

  Rival businesses
• How do production processes affect pricing?

  They influence production costs
• What are the three types of production processes?

  • Job production
  • Batch production
  • Flow production
• What is job production?

  Making individual products one at a time
• What does batch production involve?

  Making a set quantity of identical products
• What is a batch in batch production?

  A set quantity of identical products
• What characterizes flow production?

  Continuous making of identical products
• What does automation in flow production refer to?

  Turning manual steps into electronic operations
• What are the advantages and disadvantages of job production?

  Advantages:

  • High profit margins for bespoke products
  • Employees enjoy using specialist skills
  • Customers get exactly what they want

  
  

  Disadvantages:

  • Requires highly skilled staff, increasing costs
  • Training skilled staff can be expensive
• What are the advantages and disadvantages of batch production?

  Advantages:

  • Able to make a variety of sizes or flavours
  • Can be partially automated
  • Produces more products than job production

  
  

  Disadvantages:

  • Less flexible regarding customer tastes
  • Higher costs than flow production
• What are the advantages and disadvantages of flow production?

  Advantages:

  • Able to make far larger quantities
  • Consistency in production ensures identical products
  • Highly automated process

  
  

  Disadvantages:

  • Low profit margins in competitive markets
  • Expensive machinery needed for automation
  • Customers prefer tailored products
• What is a key disadvantage of flow production?

  Low profit margins in competitive markets
• Why might customers prefer products from job production?

  They are tailored to specific preferences
• How does automation impact production processes?

  It increases efficiency but requires investment
• What must production costs be kept low to compete with rival businesses?

  So products can be priced competitively
• How do production processes affect productivity?

  They influence the efficiency of production
• What are the three main types of production processes mentioned?

  Job, batch, and flow production
• What is job production?

  • Individual products made one at a time
  • Tailored to meet specific customer needs
• What is batch production?

  • Group of identical products made simultaneously
  • Moves to the next group after completion
• What is flow production?

  • Identical, standardized products produced continuously
  • Often used on assembly lines
• How might a bakery use batch production?

  To bake a batch of cakes at once
• What is productivity defined as?

  The amount of work produced in a time
• How can productivity be measured?

  In products produced per worker over time
• What are ways to improve productivity?

  • Invest in up-to-date machinery
  • Provide incentives for workers
  • Offer training to improve skills
  • Encourage time-saving ideas from staff
• What does automated machinery do?

  Replaces manual steps with electronic operations
• What is an incentive in a business context?

  An encouragement or reason to do something
• What is a promotion in a business context?

  The advancement of an employee’s position
• Why is being more productive beneficial for businesses?

  It keeps costs per unit as low as possible
• How does low production cost affect pricing?

  It allows for more competitive pricing