production of goods and services notes - Coggle Diagram
production of goods and services notes
production is the making of inputs such as land, labour and capital into physical goods.
differences between production and productivity
production:the process of converting inputs such as land, labour and capital into saleable goods.
productivity: a measure of the efficiency of inputs used in the production process, especially labour and capital.
labour productivity = total output/ number of production employees
hold inventories of
raw materials and components - they are needed as inputs for the production process
work in progress - that is part finished products that have not yet completed the production process
finished goods ready to be sold or sent out to customers.
inventories add to business costs like
types of production
flow production: large quantities which are identical on a continuously moving process
job production: the production of items one at a time
batch production: the production of large batches at one time.
lean production: kaizen and Just in time methods
advantage and disadvantage of new technology for businesses
reduces the costs and is much quicker