Production Processes

• What is the functional area of a business responsible for taking inputs and turning them into outputs?

  Operations
• What is the production process?

  It is the process of taking inputs and turning them into outputs.
• What type of production occurs when a business produces products that meet specific customer requirements?

  Job production
• What happens each time a new product is made in job production?

  Changes may need to be made to the production process.
• Give an example of job production.

  Made-to-measure clothes
• What is one advantage of job production regarding pricing?

  The business may be able to charge a higher price for the product.
• How does job production affect product quality?

  Products are likely to be high quality.
• How does job production impact employee motivation?


  The variety of work may mean employees are less likely to become bored and demotivated at work.
• What is a disadvantage of job production related to production costs?

  It is expensive to produce as each product is different.
• What is a disadvantage of job production regarding employee skills?

  Employees need to be skilled and may require training.
• What type of production occurs when a business makes large numbers of identical products?

  Flow production
• What is an example of flow production?

  Chocolate bars
• What is one advantage of flow production regarding volume?

  The business is able to produce large volumes of products.
• How does flow production allow employees to work?

  Employees can specialise in a small number of tasks, known as division of labour.
• How does producing in large quantities affect costs in flow production?

  It reduces the cost per unit.
• What is a disadvantage of flow production related to machinery costs?

  High initial costs of machinery to set up the business.
• What is a limitation of flow production regarding product variety?

  There is a lack of flexibility, as all products need to be identical or fairly similar.
• How can flow production affect employee motivation?

  Employees may become bored or demotivated due to their limited range of tasks.
• What is a risk associated with large investments in flow production?

  Large investment into things like expensive machinery leads to increased risks.
• What does JIT stand for in stock control methods?

  Just-in-time
• How does the JIT stock control method operate?

  It involves regular deliveries of raw materials just before existing stock runs out, eliminating the need for buffer stock.
• What is the benefit of having regular deliveries in JIT stock control?


  It ensures that the business has the necessary materials without needing to store excess inventory.
• Why is a good relationship with suppliers important in JIT stock control?

  A good relationship helps ensure timely deliveries and reduces lead time.
• What is lead time in the context of JIT stock control?

  Lead time is the time taken from placing an order to receiving the stock.
• What does efficiency measure in a business?

  Efficiency measures how well a business uses its resources to make products or provide services.
• What is a potential disadvantage of JIT stock control?

  A business may run out of stock due to late deliveries.
• What are the advantages of JIT stock control?

  • Eliminates buffer stock space, allowing more room for production
  • Fresher products due to smaller, more frequent deliveries
  • Reduces capital tied up in stock, allowing reinvestment
  • Decreases waste by minimizing stock that could go out of date
  • Lowers production costs, enhancing competitive advantage
• How does JIT stock control affect the use of capital?

  It reduces the amount of capital tied up in stock.
• Why is it important for JIT stock control to have frequent deliveries for perishable items?

  Frequent deliveries ensure that perishable items remain fresh.
• What challenges might a business face when using JIT stock control during unexpected demand changes?

  It may struggle to meet increased demand, such as during a heatwave for ice cream.
• What is a drawback of not being able to use bulk-buy discounts in JIT stock control?

  Businesses miss out on cost savings that come from purchasing larger quantities.
• How might JIT stock control affect customer service?

  Customers may experience poor service if the business misjudges stock levels and runs out of products.
• How is efficiency related to the amount of inputs needed in production?

  The lower the amount of inputs needed, the more efficient the business is.
• What could be the impact of industrial action like strikes on just-in-time production?

  It could be very damaging due to the lack of spare stock.
• What is one way to measure efficiency in production?

  Cost per unit.
• What is necessary for kaizen to be effective in a business?

  Employees need to be motivated and committed to improving the business.
• How can employees help avoid waste in lean production?

  By being trained to check quality at every stage of the process and sending back faulty work.
• If a business produces 10,000 units at a cost of £10,000, what is their cost per unit?


  £1.
• Why is collaboration between managers and employees important in lean production?

  To ensure lean production methods are carried out correctly.
• If a business reduces its production cost to £7,500 while producing the same 10,000 units, what is the new cost per unit?

  £0.75.