Production (Edexcel IGCSE Business): Flashcards
Exam code: 4BS1
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Name the three main methods of production.
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Name the three main methods of production.
Job, batch, and flow (mass) production.
Name two factors that affect the method of production a business chooses.
The level of output, the nature of the product, whether it is standardised or customised, and the level of automation (any two).
Define job production.
Job production is where products are made individually to meet the specific requirements of individual customers.
Give one advantage of job production.
High customisation and attention to detail, allowing a premium price and building customer loyalty.
Give one disadvantage of job production.
It is expensive, has long lead times, and its low volume prevents economies of scale.
Give an example of job production.
Made-to-order furniture, tailored clothing (suits, wedding dresses), or bespoke jewellery.
Define batch production.
Batch production is where products are made in groups (batches), each batch completing the whole process before the next begins.
Give one advantage of batch production.
It can switch between products for different needs, is more cost-effective than flow for small quantities, and gains some purchasing economies.
Give one disadvantage of batch production.
Set-up time between batches causes down time, and stock accumulates, needing storage.
Batch production strikes a balance between customisation and -effectiveness.
Batch production strikes a balance between customisation and cost-effectiveness.
Define flow (mass) production.
Flow production makes a product in a continuous sequence of operations on a production line, used for high volumes of standardised products.
Give one advantage of flow production.
It minimises set-up/idle time, gives consistent quality, uses fewer skilled workers, and has short lead times.
Give one disadvantage of flow production.
High capital investment, a breakdown can halt the whole line, and it does not allow customisation.
Flow production is commonly used for high volumes of products, such as cars and electronics.
Flow production is commonly used for high volumes of standardised products, such as cars and electronics.
True or False?
Job production is well suited to producing large quantities of identical products.
False.
Job production is for unique, low-volume products; flow production suits large quantities of identical goods.
True or False?
In batch production, each batch completes the whole production process before the next begins.
True.
Each batch goes through the entire production process before the next batch starts.
Define labour-intensive production.
Labour-intensive production predominantly uses physical labour (rather than machinery) to produce goods or services.
Define capital-intensive production.
Capital-intensive production predominantly uses machinery and technology (rather than labour) to produce goods or services.
Where is labour-intensive production common?
In countries with low labour costs (e.g. Bangladesh), in small-scale production, and in service delivery.
Where is capital-intensive production common?
In large-scale production of standardised products, and in developed countries where labour costs are high.
Give one advantage of capital-intensive production.
Low-cost production at high output, consistent and precise machines that can run without breaks.
Give one disadvantage of capital-intensive production.
High set-up and maintenance costs, breakdowns can delay production, and limited flexibility.
Give one advantage of labour-intensive production.
Low cost where labour is cheap, workers can be creative, and they are flexible (they can be retrained).
Give one disadvantage of labour-intensive production.
Workers may be unreliable and need breaks, incentives may be needed to motivate them, and training costs can be significant.
Manufacturing in developed countries, where labour costs are relatively , is likely to be capital-intensive.
Manufacturing in developed countries, where labour costs are relatively high, is likely to be capital-intensive.
Small- production is likely to be labour-intensive.
Small-scale production is likely to be labour-intensive.
True or False?
Capital-intensive production is best suited to small-scale, customised output.
False.
Capital-intensive production suits large-scale, standardised output; labour-intensive production suits small-scale.
True or False?
The delivery of services is usually more labour-intensive than manufacturing.
True.
Services such as teaching rely heavily on physical labour, making them more labour-intensive than manufacturing.
Define productivity.
Productivity is the output per worker over a given time period.
What is the formula for productivity?
Productivity = total output ÷ number of workers.
A business produces 46,000 units with 50 workers. What is productivity per worker?
46,000 ÷ 50 = 920 units per worker.
Output is 69,000 units with 60 workers. What is productivity per worker?
69,000 ÷ 60 = 1,150 units per worker.
Productivity rises from 920 to 1,150 units per worker. What is the percentage change?
((1,150 − 920) ÷ 920) × 100 = 25% increase.
Name two ways a business can increase productivity.
Motivating employees, training staff, better working practices, and investing in capital equipment (any two).
The higher the level of productivity, the the average total costs.
The higher the level of productivity, the lower the average total costs.
How can motivating employees increase productivity?
Motivated workers are more productive — e.g. financial incentives linked to output, or involving them in decision-making.
How does higher productivity make a business more competitive?
It lowers average costs, so the business can cut prices or make higher profit, and reinvest in further improvements.
How do customers benefit from higher productivity?
Lower prices (from reduced costs) and often better quality and customer service.
Workers may be rewarded for higher output with a linked to their productivity.
Workers may be rewarded for higher output with a bonus linked to their productivity.
True or False?
Higher productivity can create difficulties for workers, such as job losses or feeling overworked.
True.
New machinery may cause job losses, and staff may feel pressured to increase output.
True or False?
Productivity measures the total output of a business, regardless of the number of workers.
False.
Productivity is output per worker — total output divided by the number of workers.
How can investment in capital equipment raise productivity?
Automation improves output and quality, makes fewer mistakes, and can run for long periods without a break.
Define lean production.
Lean production involves minimising the resources used in production, with a focus on reducing waste.
Give one benefit of lean production.
Lower unit costs (so lower prices), higher quality output, and increased profit margins.
Name two strategies used in lean production.
Just-in-time (JIT) stock control and Kaizen.
Define just-in-time (JIT) stock management.
JIT is where raw materials are not stored onsite but ordered and delivered by suppliers just in time for production.
What must a business have in place for JIT to work?
Close relationships with a small number of trusted, reliable suppliers, often in close proximity.
Give one advantage of JIT stock management.
Lower storage/stockholding costs, improved cash flow, and free storage space for productive use.
Give one disadvantage of JIT stock management.
No bulk-buying economies, can't meet sudden demand rises, and unreliable suppliers can halt production.
Define Kaizen.
Kaizen is continuous improvement — small, ongoing changes that eliminate waste and raise productivity.
How is Kaizen different from one-off improvements?
Kaizen makes small, ongoing changes that are constantly reviewed, rather than large one-off changes.
Kaizen requires all workers to be actively involved in making improvements, not just .
Kaizen requires all workers to be actively involved in making improvements, not just management.
What does 'the seven wastes' refer to in lean production?
Seven types of waste minimised in lean production: transportation, inventory, motion, waiting, overproduction, overprocessing and defects.
Give two of the seven wastes in lean production.
Transportation, inventory, motion, waiting, overproduction, overprocessing, and defects (any two).
In lean production, refers to anything that prevents a business from being efficient.
In lean production, waste refers to anything that prevents a business from being efficient.
True or False?
Just-in-time production requires large amounts of stock to be held onsite.
False.
JIT holds minimal stock — materials are delivered just in time, not stored onsite.
True or False?
Kaizen relies on large, one-off changes to boost productivity.
False.
Kaizen uses small, continuous improvements, not large one-off changes.
Give one benefit of reducing waste in production.
Lower costs and greater competitiveness, better customer service, and environmental benefits.
JIT is particularly useful for businesses in markets, where products need frequent design changes.
JIT is particularly useful for businesses in dynamic markets, where products need frequent design changes.
What are robots used for in production?
To automate production processes — they use sensors and AI to collect information and improve performance.
Give two business uses of robots.
Manufacturing/assembly, warehousing/logistics, agriculture, medicine/surgery, and hazardous testing (any two).
Define computer-aided design (CAD).
CAD is the process of digitally creating design simulations of products in 2D or 3D.
Define computer-aided manufacturing (CAM).
CAM is the use of computers to assist in manufacturing operations such as production, planning and storage.
What is a drone, and how is it used in business?
An unpiloted aircraft used for tasks like package delivery, photography, and crop monitoring/spraying.
Give two advantages of using robots.
Increased productivity (no breaks/fatigue), improved accuracy, safer hazardous tasks, and lower labour costs in the long run.
Give two disadvantages of using robots.
High initial investment, maintenance costs, lack of flexibility, and possible job losses.
Robots can work continuously without breaks or , which increases productivity.
Robots can work continuously without breaks or fatigue, which increases productivity.
What does 'flexibility' in production mean?
How easily a business can switch to different machinery to make different products (known as retooling).
Automation usually works best in the manufacture of products.
Automation usually works best in the manufacture of standardised products.
True or False?
Introducing technology in production is usually cheap and requires little training.
False.
Installing technology has significant costs, needs staff training, and causes down time during installation.
True or False?
Robots can perform dangerous tasks, improving workplace safety.
True.
Robots can carry out hazardous tasks that are dangerous for humans, improving safety.
What is computer-integrated manufacturing (CIM)?
The complete automation of a manufacturing plant, with all processes functioning under computer control.
The most flexible production technology is also likely to be the most .
The most flexible production technology is also likely to be the most costly.
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