This document outlines the key topics and objectives to be covered in a Business Studies lesson on production of goods and services. The lesson will discuss why businesses hold inventories, lean production methods including just-in-time inventory control and Kaizen, and the benefits of lean production. It will also cover the main methods of production - job, batch and flow production - and factors affecting production method selection. Finally, the impact of technology on changing production methods will be examined.

1. Business
Studies 0450
S4 – Dryosauros
July 31, 2023

2. Lesson Objectives:
In this lesson we will be learning:
● why businesses hold inventories
● the concept of lean production; how to achieve it, for
example, just- in-time inventory control and Kaizen
● benefits of lean production
● the main methods of production: the features, benefits and
limitations of job, batch and flow production
● factors affecting which method of production to use
● how technology is changing production methods, e.g. using
computers in design and manufacturing

3. Topic
01 02 03
04 05
Why businesses hold
inventories
Lean Production Production of Goods
and Services
Just – in – time
inventory
Cell production
and Methods of
Production
Factors affecting
methods use and its
advantages and
disadvantages

4. Warm–Up (Review of Previous Lesson)
• Production – is the provision of a product or
services to satisfy consumer wants and needs.
• Production process – applies to both
manufacturing as well as service industries.
Production of Goods and Services

5. Task 1 : Discussion
• Assigning value to goods and services
“inputs” are combined (land, labour, capital
and enterprise).
• These are what we call factors of production
also called economic resources.
Production of Goods and Services

6. Task 1 : Discussion
Production of Goods and Services

7. Task 1 : Discussion
• Labour intensive – the use of many workers
and few machines to produce goods.
• This is done in developing countries where
wages are low because of the high presence
of “manpower”.
Production of Goods and Services

8. Task 1 : Discussion
• Capital intensive – the use of machinery such
as robots and employing only less number of
workers since labour costs are high.
• This is done in developed countries where
wages are high because workers are few.
Production of Goods and Services

9. • take inputs and change them into output for customer
use.
• responsible for making sure that raw materials are
provided and made into finished goods or services.
• It is compose different sections responsible for specific
role depending on what the business produces.
Operations department

10. Factory Manager
Responsible for the
quantity and quality of
products coming off a
production line.
Purchasing Manager
Responsible for
providing materials,
components and
equipment required for
production
Research and Development
Manager
Responsible for the design
and testing of new production
processes and products.
Operations department – its sections

11. Productivity – is how a business can measure its efficiency. It
can be measured by using the formula:
Productivity
For example, to measure the productivity of labour it is measured
by dividing the output over a given period of time by the number
of employees.

12. Ways to increase productivity:
1. improving the layout of the machines in a factory to reduce
wasted time therefore increase efficiency
2. improving labour skills by training workers so they have more
productive techniques of working.
3. introducing automation
Productivity

13. Ways to increase productivity

14. Benefits of increasing efficiency/productivity
• Increase output relative to the inputs required
• Lower costs per unit (average cost)
• Fewer workers may be needed, possibly leading to lower
wage costs.
• Higher wages for workers increase motivation.

15. Task 1: Worksheet
• Answer the 1st Graded Quiz on
your Google Classroom using
your laptop.

16. Task 2: Discussion of the New Lesson
• Inventories can be in a form of raw materials,
components of productions, finished goods or
finished products as well as spare parts for
machinery.
• Reordered point – a point where inventories
need to be reordered so that it will go back to
the maximum level again
Topic 1: Why businesses hold inventories (stock)

17. Task 2: Discussion of the New Lesson
• If the inventory level gets too
low they might run out if
business have high demand for
the goods.
Topic 1: Why businesses hold inventories (stock)

18. Task 2: Discussion of the New Lesson
• If the inventory level gets too high
then it might cause a lot of money
since it was bought but not being
used and that the money could be
put to better use.
Topic 1: Why businesses hold inventories (stock)

19. Task 2: Discussion of the New Lesson
Topic 1: Why businesses hold inventories (stock)