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Production. Production function is the part of organisation which is concerned with production i.e. the process that converts inputs into outputs. There are three main parts to the production process as can be seen in the diagram below:

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Introduction

Production Production function is the part of organisation which is concerned with production i.e. the process that converts inputs into outputs. There are three main parts to the production process as can be seen in the diagram below: A firm must purchase all the necessary inputs and then transform them into the product (outputs) that it wishes to sell. For example a football shirt manufacturer must buy the fabric, pay someone for a design, invest in machinery, rent a factory and employ workers in order for the football shirts to be made and then sold. How well-organised a firm is at undertaking this transformation process will determine its success. This is known as the productive efficiency of a firm and it will want to be as efficient as possible in transforming its inputs into outputs (i.e. using the minimum number of inputs as possible to achieve a set amount of output). This will reduce the cost per unit of production and allow the firm to sell at a lower price. Ultimately, the objective of the production process is to create goods and services that meet the needs and wants of customers. ...read more.

Middle

the Millennium Dome) * Installing new transport systems (e.g. trams in Sheffield and Manchester) Advantages The advantage of job production is that each item can be altered for the specific customer and this provides genuine marketing benefits. A business is likely to be able to 'add value' to the products and possibly create a unique selling point (USP), both of which should enable it to sell at high prices. Disadvantages Whether it is based on low or high technology, Job production is an expensive process as it is labour intensive (uses more workers compared to machines). This raises costs to firms as the payment of wages and salaries is more expensive than the costs of running machines. Flow production Flow production involves a continuous movement of items through the production process. This means that when one task is finished the next task must start immediately. Therefore, the time taken on each task must be the same. Flow production (often known as mass production) involves the use of production lines such as in a car manufacturer where doors, engines, bonnets and wheels are added to a chassis as it moves along the assembly line. ...read more.

Conclusion

Once a batch is in production it is difficult to change, as switching to another batch takes time and will mean a loss of output. Batch methods can also result in the build up of significant "work in progress" or stocks (i.e. completed batches waiting for their turn to be worked on in the next operation). This increases costs as it takes up space and raises the chance of damage to stock. What do we mean by the "quality" of a product or service? "A quality product needs to be 'fit for purpose'.This means the product must meet or exceed the customer requirements." It is important to remember for the company that it is the customer who sets the "quality standards" in terms of their overall expectations of quality. There are several ways that a customer may define quality: * Reliability * Fit for purpose * Design * Safety * Long-lasting Quality Control The objective of quality control is to ensure each finished product meets the standard set out by the business for a quality product. The traditional method by which a firm tries to achieve this quality standard is by having a separate Quality Control department whose inspectors check the finished items and reject defective or substandard products. http://www.tutor2u.net/business/gcse/production_job.htm ...read more.

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