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Production by Mind Map: Production

1. Economies and diseconomies

1.1. economies

1.1.1. internal purchasing lots of resources at cheaper rate technical larger plants are more efficient fiancial larger firm get cheaper money individual firm gets as it grows

1.1.2. with expansion costs are falling

1.1.3. external whole industry grows skilled labour built up of labour with the skills required infrastructure facilities shaped for the needs of the industry co-operation firms close to each other

1.2. diseconomies

1.2.1. with expansion costs are rising

1.2.2. bureaucracy to much time filling reports

1.2.3. labour relations relations between workers and managers worsened

1.2.4. hard to control

2. Methods of production

2.1. Job

2.1.1. Pros High quality High motivation due to variety Custom made

2.1.2. produce one product before moving to the next

2.1.3. Cons high labour slow production expensive

2.2. Batch

2.2.1. number of products of same design

2.2.2. pros unit costs are lower more use of machinery different orders can be met

2.2.3. cons more complex machinary less motivation careful planning needed

2.3. Flow

2.3.1. huge quantities into mass market

2.3.2. pros very low unit costs quick production

2.3.3. cons standarised big set-up costs low motivation

3. Lean production

3.1. aim to use fewer resources

3.1.1. raises productivity

3.1.2. reduces number of defective products

3.1.3. reduces costs

3.2. Kaizen - continuous improvement

3.3. just-in-time

3.3.1. not holding any stocks

3.3.2. goods are not produced unless being ordered

3.3.3. pros cash flow improved no stock holding costs no unproductive money

3.3.4. cons higher ordering cost reliance on suppliers reliability

4. TQM

4.1. prevent errors such as poor quality

4.2. quality chain

4.2.1. every worker both a customer and a supplier

4.3. everyone involved

4.3.1. everyone organised to take quality into account

5. productivity

5.1. downsizing

5.1.1. reducing capacity, firing workers, closing unprofitable department

5.1.2. pros save cost and increase profit more competitive operation