IB Unit 5 Production Methods

Involves producing a collection of indetical products. Work on each batch is fully completed before production switches. Used where the level of demand for a product is frequent and steady.

Manufacturing or provision of a product relies heavely on machinery and equipment. Cost of capital accounts for a higher proportion of a firm's overall production costs.

Production method; organizes workers into independent cless of multiskilled employees. Complete a whole unit of work in the production process.

Form of mass production where different operations are carried out in a continuous and progressive sequence.

Form of flow production where a product is assembled in various stages.

Manufacturing of large amounts of a standardized product; low costs of production.

Method of production that involves the production of a unique or one-off job. Completed by one person, or a team of people.

Measures the level of labour and/or capital efficiency of a business, compares inputs with outputs.

The transformation process, method of turning inputs into outputs by adding value in a cost-effective way.

Buying of raw materials, componenets, and/or other equipment needed for the production process.

The division of a large task or projuct into smaller tasks that allow individuals to concentrate on one or two areas of expertise.

Producing an identical product in large quantites.

Refers to the amount a firm spends on producing one untit of output. Calculated by dividing the total costs of production by the quantity produced.

Found by dividing a firm's total revenue by its level of output,

The difference between sales revenues and total business costs. Used to contribute towards payment or fixed costs.