1. IGCSE Business Studies
4.1.1 The Meaning of Production

2. Learning Outcomes
Managing resources effectively to produce goods and services
The difference between production and productivity
Benefits of increasing efficiency and how to increase it.
Why businesses hold inventories (stocks)
The concept of lean production;
how to achieve it
just-in-time inventory control
Kaizen

3. What Does a Business Do? Added Value INPUTS OUTPUTS
Processes
INPUTS
OUTPUTS
The Business
The overall aim of most businesses is to spend less on their inputs than they earn from their outputs and make a PROFIT

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

5. Do you remember the Factors of Production??

6. Task - Video Watch the video ‘Inside a factory’
What are the factors of production for Cadbury?
How and why has production changed over time?

7. Task - Video
Watch the video ‘An Exclusive look inside Foxconn’s factory’
What are the key differences between production at Cadbury and Foxconn?

8. Production Vs Productivity

9. Consider this scenario.
WHICH FACTORY IS MORE PRODUCTIVE?
FACTORY A -
Employees: 10
Output: 1500
Duration: 1 working week – 5 days
FACTORY B
Employees: 5
Output: 1000

10. Productivity Vs Production
Production- The total amount of goods/services produced by a business over a period of time
Productivity – The amount of goods/services produced per unit of input over a period of time
What could ‘unit of input’ mean?

11. Task – Exam Question
Work in pairs to perform some calculations on the data. See how many different calculations you could do.
Individually write an answer for the 12 mark question.

12. Group Task – Making paper planes
The Rules:
- You will have 2 minutes to make as many paper planes as you can
Each plane must be made out of an A5 sheet of paper
No materials can be prepared before the production time starts
Only planes that fly for 3 metres will pass the quality inspection

13. Reflection – 5 mins thinking time
How did your group organise your production?
What happened to your productivity, average costs and profits over the 3 periods of production?
If your results improved over the 3 periods of production, what do you think caused this?
What problems did your group encounter
In a real life production situation, what can be done to improve productivity?
Why is increasing efficiency and productivity so important for businesses?
A house point each for the team with the best answers

14. Methods of increasing productivity
Training
Target setting
Better equipment
Automation and technology
Improving production process or methods
Motivation
Performance based pay
Recruitment & selection

15. Quiz time!
Quiz link The link has been ed to you. A house point for the first person to show me a 10/10 score

16. Let’s rEFLECT…. and check our understanding so far.
In pairs and using only one sentence summarise what you have learned about production so far.
Enter your answers into Socrative
House point for the best answer

17. Key Terms – do you know their meaning?
RESOURCES
GOODS
SERVICES
PRODUCTION
PRODUCTIVITY
EFFICIENCY
AUTOMATION
CAPITAL INTENSIVE
LABOUR INTENSIVE
INPUTS
OUTPUTS

18. 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?

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

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

21. Quiz time!
Boards at the ready Quiz link

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

23. Quiz time!
Boards at the ready Quiz link

24. 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.