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AS Business Studies. How are these products made?

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Presentation on theme: "AS Business Studies. How are these products made?"— Presentation transcript:

1 AS Business Studies

2 How are these products made?

3 For each of the products (Wembley Stadium, Coca-Cola, Bread) answer the following questions: 1. How many of these goods will be produced? 2. How skilled will the workers need to be for the production process? 3. How much will it cost to produce just one unit? 4. Will the workers be interested in their work?

4 Job Production Job production is used to create one-off orders or ‘jobs’ especially made for the purpose.

5 Batch Production In batch production products are produced in small or large batches.

6 Flow Production (Mass Production) Flow Production is a production line method, where product is continuously produced, flowing from one stage of production to the next

7 Advantages of Job Production 1. Meets customer´s exact needs 2. Products are of a high quality 3. Workers are motivated 4. Job organisation is easy 1. Meets customer´s exact needs 2. Products are of a high quality 3. Workers are motivated 4. Job organisation is easy

8 Disadvantages of Job Production 1-Expensive 2-Requires a lot of tools, machinery and equipment 3-Lengthy lead times 4-High selling costs 1-Expensive 2-Requires a lot of tools, machinery and equipment 3-Lengthy lead times 4-High selling costs

9 Advantages of Batch Production -Flexibility -Specialization -Standardized -Stockpile

10 Disadvantages of Batch Production 1 -Careful planning and co-ordination required 2- Subject to delays 3- Expensive complex machinery 4- Small batches mean high unit costs 5- Money tied up in work-in-progress 1 -Careful planning and co-ordination required 2- Subject to delays 3- Expensive complex machinery 4- Small batches mean high unit costs 5- Money tied up in work-in-progress

11 Advantages of Flow Production -Economies of Scale -Machinery can replace labour -Responds quickly to changes in demand so less need to stockpile -Economies of Scale -Machinery can replace labour -Responds quickly to changes in demand so less need to stockpile

12 Disadvantages of Flow Production 1. High set-up costs 2. Product needs to be standardised and cannot match individual customer needs 3. Poor motivation 4. Breakdowns are costly 1. High set-up costs 2. Product needs to be standardised and cannot match individual customer needs 3. Poor motivation 4. Breakdowns are costly


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