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Production by Mind Map: Production

1. Economies and diseconomies

1.1. economies

1.1.1. internal

1.1.1.1. purchasing

1.1.1.1.1. lots of resources at cheaper rate

1.1.1.2. technical

1.1.1.2.1. larger plants are more efficient

1.1.1.3. fiancial

1.1.1.3.1. larger firm get cheaper money

1.1.1.4. individual firm gets as it grows

1.1.2. with expansion costs are falling

1.1.3. external

1.1.3.1. whole industry grows

1.1.3.2. skilled labour

1.1.3.2.1. built up of labour with the skills required

1.1.3.3. infrastructure

1.1.3.3.1. facilities shaped for the needs of the industry

1.1.3.4. co-operation

1.1.3.4.1. firms close to each other

1.2. diseconomies

1.2.1. with expansion costs are rising

1.2.2. bureaucracy

1.2.2.1. to much time filling reports

1.2.3. labour relations

1.2.3.1. relations between workers and managers worsened

1.2.4. hard to control

2. Methods of production

2.1. Job

2.1.1. Pros

2.1.1.1. High quality

2.1.1.2. High motivation due to variety

2.1.1.3. Custom made

2.1.2. produce one product before moving to the next

2.1.3. Cons

2.1.3.1. high labour

2.1.3.2. slow production

2.1.3.3. expensive

2.2. Batch

2.2.1. number of products of same design

2.2.2. pros

2.2.2.1. unit costs are lower

2.2.2.2. more use of machinery

2.2.2.3. different orders can be met

2.2.3. cons

2.2.3.1. more complex machinary

2.2.3.2. less motivation

2.2.3.3. careful planning needed

2.3. Flow

2.3.1. huge quantities into mass market

2.3.2. pros

2.3.2.1. very low unit costs

2.3.2.2. quick production

2.3.3. cons

2.3.3.1. standarised

2.3.3.2. big set-up costs

2.3.3.3. 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

3.3.3.1. cash flow improved

3.3.3.2. no stock holding costs

3.3.3.3. no unproductive money

3.3.4. cons

3.3.4.1. higher ordering cost

3.3.4.2. 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

5.1.2.1. save cost and increase profit

5.1.2.2. more competitive operation