Production and Efficiency

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    Production and Efficiency

    Job Production​- This is when a one-off item is produced such as a tailored suit

    • + Can charge higher price,
    • + work more interesting for staff
    • Cost per unit is high,
    • finding staff with sufficient skills hard

    Batch Production​- creating a small number of identical items

    • Allows variation in product being made,
    • speedier than job production
    • Costlier to set up as machines,
    • Cost p/unit still higher as machinery

    Flow Production​- The continuous production of the same item

    • + Unit labour costs are extremely low,
    • + Huge volumes allow demand to be met
    • High initial costs as machines (automation),
    • Need to be identical products to suit

    Cell Production​- Setting up a small production line so items can be flexibly produced

     

    • + Group working more ideas,
    • + small highly skilled cell
    •  Heavily reliant on people costs high,
    • Production volume not as high as flow

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