What is production in business?
The process of transforming raw materials or resources into finished goods or services ready for sale.
Lean production is a management philosophy focused on minimizing waste within manufacturing systems while maintaining productivity. Key elements include:
Supplier Relationship: JIT requires strong relationships with reliable suppliers. Production schedules are tightly coordinated to avoid overstocking.
What is production in business?
The process of transforming raw materials or resources into finished goods or services ready for sale.
What are the two main production methods in GCSE business studies?
Job production and flow production.
What is job production?
Creating a single product or small batch customized to individual customer specifications.
Name three characteristics of job production.
High customization, labor-intensive, small quantities.
When is job production most appropriate?
For personalized or highly specialized products needing individual attention.
What is flow production?
Producing large numbers of identical products continuously using assembly lines or machinery.
Name three characteristics of flow production.
High volume, standardized products, capital intensive.
When is flow production suitable?
For products with high demand and little variation to reduce costs.
What is lean production?
A management philosophy aiming to reduce waste while maintaining productivity.
Name a key element of lean production.
Reducing inventory, improving workflow, or ensuring quality at every stage.
What is Just in Time (JIT) production?
A lean technique where materials arrive exactly when needed to minimize stock holding.
List one advantage of JIT.
Reduced inventory holding costs or less waste from unused stock.
What is a risk of using JIT?
Supply chain disruptions can halt production.
What factors influence a businessβs choice of production method?
Product nature, scale of production, customer customization needs, costs, and technology.