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business operation - Coggle Diagram

- - - - business may charge a higher price for product
      - product likely to be higher quality
      - work is varied so employees stay motivated
    - - expensive to produce
      - employees need to be skilled and may require training
    - - Job production- occurs when a business produces products that meet the specific requirements of the customer.
  - - - business can produce large quantity's of product
      - producing in large quantity's reduces costs
      - there can be employee specification to a certain job (division of labour)
    - - high initial cost to set up machinery
      - lack of flexibility as all products have to be identical
      - employees may become bored and demotivated
      - machinery man not always be reliable (increased risk)
  - - - is a stock control method where the business doesn’t store any raw materials and minimise waste
    - - less space used for buffer storage and can be used for a production line instead
      - smaller more frequent delivers mean goods will be more fresh which is good for perishable goods such as food and veg that will go of
      - reduces production costs mean products can be cheaper - meaning a competitive advantage
    - - hard for business to react to unexpected changes in demand
      - cant use bulk buy discounts if they only buy in small quantities
      - if stock runs out customers could get poor service because the orders may not be met