IGCSE Business Studies 4.1.1 The Meaning of Production.

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Presentation transcript:

IGCSE Business Studies The Meaning of Production

Learning Outcomes To understand the production process in the provision of goods and services. Explain why the management of resources is important Examine how to increase efficiency and the benefits of this. Knowledge of different types of inventories (stock) and why businesses hold certain levels Judgements on how businesses can improve production through the implementation of lean production methods

Starter Challenge – 5 minutes Look at the 2 pictures below and consider the following questions: 1.What is the customer buying? 2.What was needed to go in to produce that (inputs)? 3.What process was required to combine the inputs (transformation)? 4.What is the output (end result)? 5.What factors does a business need to consider when planning a production process? PICTURE 1PICTURE 2

Do you remember the mnemonic - CELL? CELLCELL

So what are Resources? In pairs, List as many as you can in 1 minute!

Discuss which picture is likely to be using its resources more effectively and why? PICTURE 1 PICTURE 2

So…In groups answer on post its and pin on board How can a business manage their resources effectively? Do you think effective management of resources is important for businesses, if so why?

Consider this scenario. FACTORY A Employees: 10 Output: 1500 Duration: 1 working week – 5 days FACTORY B Employees: 5 Output: 1000 Duration: 1 working week – 5 days WHICH FACTORY IS MORE PRODUCTIVE ? WHY? and HOW? Could we create a formula or method of calculation?

Formulas Labour productivity = Output no. of employees Capital productivity = Output capital employed HOW COULD PRODUCTIVITY BE INCREASED?

Methods of increasing productivity Training Automation and technology Economies of scale Improving production process or methods Motivation – how? Adapting payment methods e.g. piece rate if relevant. Any problems with this though? Recruitment & selection What about downsizing? IS THIS THE SAME FOR SERVICES?

Quiz time! Boards at the ready Quiz link

LET’S REFLECT…. and check our understanding so far. In pairs and using only one sentence on the post it note given; try and communicate everything you have learnt so far about production. Pin on board. ALSO – THIS IS A GOOD TIME TO ASK ANY RELEVANT QUESTIONS

Key Terms – do you know their meaning? RESOURCES GOODS SERVICES PRODUCTION PRODUCTIVITY EFFECTIVE EFFICIENT AUTOMATION INPUTS OUTPUTS TRANSFORMATION

So…can you apply what you know to your life! For example what resources are needed to get you awake, up out of bed and into school each day? Are you making effective use of your resources? Are you always at your most productive? Could you be more efficient?

Inventories (stock) Watch the video “Stock control and Lean production” and consider the following questions: 1.What are the 3 different types of inventories? 2.Why is managing stock important for a business? 3.What is ‘Lean Production’? 4.What is ‘JIT’? 5.What are the Advantages & Disadvantages of JIT?

Case Study Toyota & Honda face a problem due to JIT stock control. Toyota & Honda DO YOU THINK JIT PROBLEMS LIKE THIS CAN BE AVOIDED? WHAT CONTINGENCY PLANS COULD BUSINESSES HAVE?

Quiz time! Boards at the ready Quiz link

Lean Production Watch the following videos “four principles of lean management” and “Toyota production system in the news”. Consider these questions: 1. What is “Lean production”? 2.What does the term ‘pull’ mean in the context of lean? 3.What is Kaizen? 4.What are some features or methods of lean production? 5.What are the benefits of implementing lean production?

Quiz time! Boards at the ready Quiz link

Homework Read Boeing case study and be ready to have class discussion on what Boeing have done to go ‘Lean’ and the benefits these changes have produced.