Business operations and production processes

Overview

Job, batch and flow production with their advantages and disadvantages, labour productivity, how production choices affect price, and the benefits and costs of new production technology.

What you need to know

Answer each one before you reveal it.

Questions from this subtopic

Each one with the model answer underneath.

1. 1

   What is the purpose of business operations?

   Model answer

   Business operations turn inputs such as materials and labour into goods or services. Operations aim to meet customer needs efficiently.

2. 2

   What is the difference between producing goods and providing services?

   Model answer

   Goods are physical products that can be stored, such as cars. Services are intangible actions performed for customers, such as haircuts.

3. 3

   What is job production?

   Model answer

   Job production is making a single, unique product to a customer's own order. Wedding cakes and made-to-measure suits are made this way.

4. 4

   What are the advantages and disadvantages of job production?

   Model answer

   Job production gives high quality and exactly what the customer wants, so a high price can be charged. Unit costs are high because the work is skilled and slow.

5. 5

   What is batch production?

   Model answer

   Batch production is making a set number of identical products before switching to a different batch. A bakery might bake 200 white loaves, then 200 brown.

6. 6

   What are the advantages and disadvantages of batch production?

   Model answer

   Batch production offers some variety while keeping unit costs below those of job production. Machines stand idle while they are reset between batches.

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