ZIMSEC O Level Business Studies Notes: Production: Introduction

  • Production refers to the process and methods by which inputs i.e. raw materials or semi-finished goods are combined with other factors of production are turned into finished products or semi-finished goods products
  • During the production process the factors of production are combined to make a finished product that can be marketed in exchange for financial gains which will allow the business to achieve its objectives
  • Some of the basic functions of the production department include:
    1. New product development together with the marketing department
    2. Ensuring product quality is achieved and maintained
    3. Creating models of the business’s products
    4. Providing after sales service for sold products e.g. a plane maker or computer makers provides a warranty that obligates them to provide repair and maintenance services for a certain period
    5. Planning the manufacturing process including factory layout
    6. Choosing a suitable production method and implementing it
    7. Capacity planning
    8. Factory layout planning
    9. Stock control
  • There are three major production methods that a business can choose from:
    1. Job Production
    2. Batch Production
    3. Flow Production
  • Each has it’s advantages and disadvantages

To access more topics go to theĀ O Level Business Notes


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