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Entrrepeneurship: Production in bussines - Coggle Diagram

- - - - High-quality products due to small-scale and focused production
      - Personalised products bring in more revenues and customer satisfaction
      - Higher job satisfaction due to employees’ strong commitment to the tasks
      - More flexibility compared to mass production
    - - For manufacturers: - Higher costs to employ high-skilled workers - Production can take up a lot of time and resources - Specialised machines are needed for complex items - A lot of calculations or assessment needs to be made before the work is carried out
      - For consumers:
        
        Higher fees for personalised products - Difficulty in finding replacements since the products are uniquely designed
        
        Longer waiting times to receive the final product
  - - - Employees lose productivity as most of the work is done by the machines causing the main problem of downtime, this makes the company lose productivity in comparison to other methods of production.
      - Batch production is more expensive than mass production for example, this is a limitations as it creates more capital than the mass production producers creating a limitations in possible invests that may help the company (machines, employees, deals, propaganda etc.).
    - - Smaller quantities of items/more variety: Batch production provides the opportunity for businesses to make a smaller quantities of a product in order to have more varieties of goods available. This also means that items can be manufactured on request, decreasing lead times in production.
      - Lower Costs, because a greater quantity of products can be manufactured on a same production line, the manufacturing costs are spread across the various commodities. At the same time, machinery isn´t continually active so running costs can be reduced, and maintainance can be scheduled for downtimes.
  - - - Short lead-time: Lead time is the time between the start of a process and its completion. Flow production reduces the lead time, as items move along a continuous flow of automated machines. A short lead-time means that the product can be delivered more quickly, which improves customer satisfaction.
      - Low inventory: With a shorter lead time, businesses can hold less inventory, which reduces inventory costs. There is also more space for production or storing finished goods.
    - - Special machines: Machines in flow production are expensive and perform only one function. Thus, it is difficult to replace them if something breaks down.
      - The danger of stoppage: If one station breaks down, the whole assembly line will stop as well.