Production
Pg 316 - 323
Production
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Describe and compare the features and
applications of job, batch, line, flow and mass
production
Analyse the most appropriate method for a given
situation (HL)
Understand the need for more than one
Method (HL)
Analyse the implications for functional areas
(marketing, human resource management and
finance) that arise from changing the production
system. (HL)
A3 Revision Sheets
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4 Sheets
1 extra for HL
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Describe and compare the features and applications
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Production is the process of converting raw
materials or components into finished goods.
The four factors to production are……..
‘Remember?’
Four factors to production
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Land
Labour
Capital
Enterprise
… they combine in different proportion as
inputs to the production process
Production Mash up:
http://www.youtube.com/watch?v=DTWnQD
Ahp9k
Some goods and services produced use a
high proportion of labour (staff)..
Labour
intensive - this is where the
proportion of labour used in producing the
product is relatively high. Labour will usually be
used instead of capital.
Other goods produced use a high propotion
of machinery….
Capital
intensive - this is where techniques
are used to produce that use relatively more
capital than labour. Many industries are now
like this including the car and steel industries.
Labour or capital internsive?
The technique that a company uses depends on several things:
the size of the company - small companies are often not in a position to afford
expensive capital equipment. Even if they could they are often not able to use it
enough to justify the cost.
the cost of the factors of production - even though a machine may be available
to do the job, it may not be worthwhile if the amount of labour required costs less.
Firms therefore look carefully at the cost of labour and capital before deciding how
much to use.
the product - some products lend themselves better to being produced by capital
than others. Mass-produced everyday items are far more likely to be produced in a
capital-intensive way, whereas services and products with a more individual slant
are more likely to be produced using a large proportion of labour.
Developing countries tend to be more labour intensive.. Developing countries more
capital intensive.
METHODS OF PRODUCTION
Three main methods of production are used… The choice of
method depends largely on the type of product.
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Summary: http://www.youtube.com/watch?v=CLPFG5QCx0g
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Job production - this is a method of production where companies use
all their factors of production to complete one job at a time. This will
usually happen where products are all unique or they are being
produced on a very small scale.
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Batch production - this is a method of production where one
operation is completed on a number of units of the product, before
they are then passed on to the next stage of the process.
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Flow/Mass production - this is where production takes place as a
continuous process. The product flows from one process onto the
next. This will usually happen where the product is standardised, and
can be made using a production line method.
Job Production
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Individual, unique process
Unique design based on customer specification
If made in a factory, the business would need to retool each
time!
Require a highly skilled labour and a high labour-to-capital ratio
Labour intensive
Expensive
Take a long time
Examples: Ships, bridges and hand made crafts such as
furniture making and made-to measure clothes
Job Production
Cell 1
Finished Product
Cell 2
Finished Product
Cell 3
Finished Product
One off production, each product
could be different
Mass (flow) Production
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Opposite of Job production.
‘the process of large quantities of identical products often on
assembly lines’
All products are identical, and the aim is to make as many as
possible.
To be efficient production is continuous with no stoppage
Many mass productions open 24 hours and staff work on shifts.
The aim is economies of scale and so produce at minimum
cost.
Mass production is highly capital intensive – it costs a lot to buy
the capital but it is cheap to run it afterwards.
Modern mass production use robots, not people to do most the
work.
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Flow Production
Operation 1
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Finished
Product
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Mass market products that are identical
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Mass Production
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It is used Mass markets products. Modern
consumer goods are produced this way e.g.
chocolate bars, person stereos and toaster.
Production line – where the workers and
machines stay at the same point allows them
to specialise.
Mass production is sometimes called
continuous flow production.
Problems with Mass Productions
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Production line and process meant that the
product was travelling long distances within
the factory. (time and size increases cost)
Large volume of stock kept.
Communication poor (people like robots)
Workers not responsible for quality
Production inflexible (poor skill)
Batch
Production
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Is a mixture of the two
Business use mass production techniques to make a
Batch of the thing and then stop, reorganise, and
make a batch of something else.
Small groups of products made in stages
It is suited to products that are identical to each
other, but are only produced in limited quantities – or
for a limited amount of time.
1b
Batch1aProduction
2a
Operation 1
3a
3b
1c
2b
3c
1d
2c
3d
Products made one batch at a time to
allow modifications on some items
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Examples..
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A specific process for each item takes place at the same time on a batch of items, and that
group does not move onto the next stage of production or inspection until the whole batch
is done.
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For example, in small bakeries and many homes, as opposed to large food manufacturing
companies, cookies are baked in batches. A baker must first make the dough, then place it
onto baking sheets, and then bake it. People are limited as to how many cookies they can
produce at one time by the number of baking sheets and ovens they possess, and by the
size of bowls available to mix each batch.
This is batch production, since a large number of cookies is baked at the same time, and
bakers can’t skip from one step to the next until each process is complete. They can’t start
cooking the cookies until they've made the dough, and they can’t remove the cookies from
the oven (in most cases) until all the cookies are done, unless using an oven with a
conveyor belt. There are necessary steps that apply to the whole batch of cookies. Cooking
may requires a baker to bake in individual batches, increasing the final time between
finishing the dough and actually having completed baking all the cookies.
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Example…
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Another example is found in thin film coating of materials, like
lenses, computer screens and the like. A coating machine can
hold a finite number of the item being produced, and it can take
several hours to over a day to apply the coatings needed in
order to produce one batch.
After materials are coated, they move on to the inspection
process, while the coating machine must be readied for the
next batch. This resetting of the machine may take
considerable time, and may require several steps before the
next batch can be placed in the machine.
Batch or flow?
http://www.youtube.com/watch?v=GUkO0M7ed
ok
Cell Production (HL)
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Cell production is a form of flow production, but instead of each worker
performing a single task, the production line is split into several selfcontained, mini-production units - known as cells. Each individual cell
produces a complete unit of work, such as a complete washing machine motor
and not just a small part of it.
Each cell has a team leader and below that a single level of hierarchy made up
of multi-skilled workers. The performance of each cell is measured against preset targets (output levels, quality and lead times, etc).
Cells are responsible for the quality of their own complete units of work (total
quality management - topic 5.3, job enrichment and teamworking - topic 2.5).
Cell Production (HL)
The cell production method has led to:
increased
worker commitment and motivation
job rotation within the cell
increased productivity
Improved productivity
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Fewer workers needed to produce the same as
before, Fewer machines are needed, less factory
space is required.
This can then lead to DOWNSIZING of a business.
Factories are closed and workers are made
redundant. On the other hand, a business may find
by lowering its prices demand increases. The same
number of workers and factories can now produce
more.
Downsizing – reducing the number of inputs to the
production process (workforce/factories) without
necessarily reducing the output of the business.
ACTIVITY
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SNOWBOARDS:
http://www.youtube.com/
watch?v=sxZ-zLUe4T4
Handout
• Analyse
the most appropriate method for a
given situation (HL)
• Understand the need for more than one
• Method (HL)
• Analyse the implications for functional
areas (marketing, human resource
management and finance) that arise from
changing the production system. (HL)
How are they produced?
In your book write down how you think
each of these is produced…