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Production and Productivity - Coggle Diagram
Production and Productivity
Production
Flow Production
When demand is high
Can produce larger quantities
The process is continuous
A standardised product is made
Batch Production
Large quantities, similar products
Allows for flexibility
More planning and co-ordination needed
Low production cost per unit
Can become boring
Job Production
One job finishes, one job starts
Bespoke, when demand is low
More flexibility
Each item will be different
Employees have multiple skills
turning inputs (resources)
into outputs (products)
Productivity
the rate at which the
output is produced
Labour Productivity
Total Output / Number of workers
Capital Productivity
Total Output / Amount of Capital
Advantages
Job Production
Quality output
Motivated workers
Suit customer needs
Charge higher prices
Batch Production
Lower unit costs
Flexible with orders
Flow Production
Lowest unit costs
Fast production
Can be flexible
Disadvantages
Job Production
Slow production
More expensive (labour)
Batch Production
Requires planning
Delay between steps
Lower worker motivation
Small batches = unit costs rise
Flow Production
High set-up costs
Low worker motivation
Inflexible
Breakdown issues