ZIMSEC O Level · Business Enterprise Skills · Form 3, Form 4
The production process
Inputs (raw materials, labour, equipment, money) → processes (making, assembling, servicing) → outputs (goods and services).
Methods of production
- Job production: one-off items made to order (a wedding dress, custom furniture).
- Batch production: groups of identical items (bread, school uniforms).
- Flow (mass) production: continuous production on a line (soft drinks).
Quality
Quality control checks finished goods; quality assurance builds quality into every stage. Good quality builds a reputation and reduces waste.
Stock control
Keep enough stock to meet demand but not so much that money is tied up or goods spoil. Use stock cards and reorder levels; first in, first out (FIFO) for perishable goods.
Location of a business
Consider nearness to customers, suppliers and raw materials; rent; transport; security; utilities (water, electricity); and council regulations.
Value addition
Processing raw products increases their value and income: groundnuts → peanut butter; tomatoes → sauce; maize → snacks.
Check yourself
- Which production method makes bread in groups of identical loaves?
- Give three factors to consider when choosing a location for a hair salon.
- What is meant by FIFO?
Show answers
- Batch production.
- Any three: customers nearby, rent, security, water and electricity, competition, transport access.
- First in, first out – the oldest stock is sold or used first.
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