Production Processes (AQA GCSE Business): Flashcards
Exam code: 8132
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Define production.
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Cards in this collection (27)
Define production.
Production is the transformation of resources, such as raw materials and components, into finished goods or services.
True or False?
Hairdressing is an example of a good.
False.
Hairdressing is a service, which is a non-physical item. Goods are physical products, such as bicycles and T-shirts.
Transforming inputs into goods and services adds ___ to the raw materials.
Transforming inputs into goods and services adds value to the raw materials.
Which factors affect the choice of production method?
They include the level of output required, the nature of the product, whether it is standardised or customised and the level of automation used.
Define job production.
Job production is where products are made to meet the specific requirements of individual customers, with each item produced separately.
Why can job production be very profitable?
Unique, specialised products made by skilled craftspeople can command high prices because they meet customer needs very precisely.
True or False?
Job production usually allows a business to achieve economies of scale.
False.
Job production is low-volume, so it is unlikely to achieve economies of scale. It also tends to be more expensive and take longer than other methods.
Job production offers a personalised customer experience, which is likely to lead to customer _____.
Job production offers a personalised customer experience, which is likely to lead to customer loyalty.
Define flow production.
Flow production is the manufacture of a product in a continuous sequence of operations on a production line.
What kind of products is flow production commonly used to make?
Flow production is used to make high volumes of standardised products, such as vehicles and consumer electronics.
Why are unit costs low in flow production?
Unit costs are low due to automation, the use of unskilled workers and costs being spread across a large volume of output.
True or False?
Installing a production line usually requires significant capital investment.
True.
Setting up flow production needs a large upfront investment in equipment and machinery, which is a key disadvantage.
What can happen if one part of a production line breaks down?
A breakdown can disrupt the entire process, leading to costly down time.
Flow production relies on a steady flow of components and raw materials, so any disruption in the __________ can severely affect production.
Flow production relies on a steady flow of components and raw materials, so any disruption in the supply chain can severely affect production.
Define lean production.
Lean production involves the minimisation of the resources used in production.
Why is less labour used in lean production?
Less labour is used because lean production is typically capital intensive.
Fewer materials are used in lean production because there is a focus on _____________.
Fewer materials are used in lean production because there is a focus on waste reduction.
How can lean production give a business a competitive advantage?
Lower unit costs mean prices may be lower than those of competitors. Better quality of output is also likely.
True or False?
In lean production, only managers are responsible for quality.
False.
All workers have a responsibility for quality, so ongoing training is vital.
What qualities do workers need in a lean production system?
Workers need to be motivated and flexible, able to switch between tasks and constantly alert to changes that improve efficiency.
What must suppliers be able to do for lean production to work?
Suppliers must be capable of responding very quickly to stock requests.
Define just in time production.
Just in time production means a business only manufactures products when a customer confirms an order for them.
True or False?
Just in time production reduces a business's need for storage.
True.
Stock is only ordered to arrive when needed and products are only made when there is demand, so little storage is required.
Define Kaizen.
Kaizen involves taking continuous steps to improve productivity.
True or False?
Kaizen relies on significant one-off changes to production.
False.
Kaizen relies on small, ongoing changes rather than significant one-off changes.
What does Kaizen require from managers and workers?
It requires a long-term management commitment to change and workers who are fully engaged in continuous improvement.
Elements of Kaizen commonly include __________ in manufacturing and high levels of cooperation between workers and management.
Elements of Kaizen commonly include zero defects in manufacturing and high levels of cooperation between workers and management.
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