If you don’t remember what your business teacher taught you, you are disqualified !

WHAT IS PRODUCTION?

The combination of the factors of

production to provide the right

products at the right place and

time, in the quantity demanded

and at the price the consumer is

prepared to pay.

Capital

Raw material

Labour

Entrepreneurship

Interest

Rent

Wages/salaries

Profit

FACTORS OF PRODUCTION

Factor of production Remuneration

PRODUCTION SYSTEM

Production

processes

Interrupted

Batch producti

on

Jobbing

Continuous

Mass producti

on

MASS PRODUCTION

CHARACTERISTICS OF MASS PRODUCTION

Single purpose machine are used

Limited variety of goods produced

Conveyor belts are used ( automation )

There has to be a stable and large demand for

the product

ADVANTAGES OF MASS PRODUCTION

Lower cost per unit

The work is done faster and cheaply because workers are used

at their maximum

Specialisation leads to cost saving

Conveyor belts reduce the handling of materials and spare parts

Less wastage

It is easier to do quality control when products are

standardised

Division of labour ensures that workers become more

productive

DISADVANTAGESOF MASS PRODUCTION

It is inflexible e.g. if the machine breaks the

production is delayed

Difficult to cope with change in demand because

one single purpose machine is used

Single purpose machine are expensive and large

capital is required

It is expensive to make changes to machines

JOBBING

CHARACTERISTICS

One job must finish before a new job is done

Jobs are done according to the customer’s specific instructions

It is seldom that the production of the same product is

repeated

A higher level of skills is required from workers because the

task is not of routine nature

General purpose machines are used

Jobbing usually involves the production of capital goods

BATCH PRODUCTION

BATCH PRODUCTION

Falls between mass production and jobbing

Products are made in batches

One batch must be completed before the next one is

started e.g. the production of different colours of the

same shoes.

i.e. the machines have to be stopped and reset before

production can continue and is therefore an

interruption in the production process

When I dig deep I will reach my inner gold, wisdom and courage

WHICH PRODUCTION SYSTEM TO IMPLEMENT IN EACH OF

THE FOLLOWING INSTANCES?

Producing 2-liter coke

Producing different Fanta grapes products

Producing a Laser jet

Producing T-shirts with your logo on them

Producing flat screen TVs