Study Notes
Production in business involves transforming inputs into outputs to meet customer needs. It includes various methods like job, batch, and flow production, each with its own advantages and disadvantages.
- Job Production — where a single product is made at a time. Example: Custom furniture making.
- Batch Production — where products are made in specific amounts before moving to the next stage. Example: Baking batches of bread.
- Flow Production — where large quantities of a product are produced continuously. Example: Car manufacturing.
- Labour Intensive Production — uses more labour than machinery. Example: Handmade crafts.
- Capital Intensive Production — uses more machinery than labour. Example: Automated assembly lines.
- Lean Production — techniques to cut waste and increase efficiency. Example: Just-in-time inventory management.
- Productivity — the amount of output against the amount of input. Example: Number of cars produced per hour.
- Kaizen — continuous improvement through small changes. Example: Regular team meetings to discuss improvements.
Exam Tips
Key Definitions to Remember
- Job Production
- Batch Production
- Flow Production
- Lean Production
- Productivity
Common Confusions
- Mixing up job and batch production methods
- Confusing capital intensive with labour intensive production
Typical Exam Questions
- What is job production? A method where a single product is made at a time.
- How does batch production differ from flow production? Batch production involves making products in groups, while flow production is continuous.
- What are the benefits of lean production? Reduces waste and increases efficiency.
What Examiners Usually Test
- Understanding of different production methods
- Ability to calculate and interpret productivity
- Knowledge of the impact of technology on production