GDE BUSINESS STUDIES PRODUCTION FUNCTION CHAPTER 11

BUSINESS STUDIES
GRADE 11
PAPER 1
TERM 2
CHAPTER 11
PRODUCTION FUNCTION
ASPECTS OF THE PRODUCTION FUNCTION , PRODUCTION
PLANNING AND QUALITY CONTROL
REVISED NOTES
2024
TABLE OF CONTENTS
TOPICS PAGES
Exam guidelines 2
Terms and definitions 3
Definition of production planning 4
Aspects that must be considered during production planning 4-5
Advantages of production planning 5
The meaning of production control 5
Aspects that must be considered during production control 5-6
Reasons why businesses must manage safety in the workplace 7
Requirements for a safe environment 7
Precautionary measure that businesses should take when handling 8
machinery.
The purpose of the Occupational Health and Safety Act and 8
compliance
Recommend/Suggest ways in which businesses can comply with the 8
Occupational Health and Safety Act
Definition of quality control 9
Meaning of a quality management system 9
The meaning of Total Quality Management (TQM) 9
South African Bureau of Standards (SABS) 9
International Standards Organisation (ISO) 10

This chapter consists of 10 pages

1
 GDE BUSINESS STUDIES PRODUCTION FUNCTION CHAPTER 11

CONTENT DETAILS FOR TEACHING, LEARNING AND ASSESSMENT PURPOSES

PRODUCTION FUCTION

Learners must be able to:

PRODUCTION PLANNING
 Define production planning.
 Outline/State/Explain/Discuss aspects that must be considered during production
planning e.g. planning, routing, scheduling and loading.
 Explain/Discuss the advantages of production planning.
 Explain the meaning of production control.
 Outline/State/Explain/Discuss aspects that must be considered during production control
e.g. dispatching, following up, inspection and corrective action.
 Explain the reasons why businesses must manage safety in the workplace.
 Explain/Discuss the requirements for a safe environment e.g. safety policy, visible
warning signs, first-aid kit, safe working environment etc.
 Explain/Discuss/Recommend precautionary measure that businesses should take when
handling machinery.
 Explain the purpose of the Occupational Health and Safety Act.
 Recommend/Suggest ways in which businesses can comply with the Occupational
Health and Safety Act.
Terms and Definitions

TERM DEFINITION
System an orderly arrangement of parts to achieve a specific
outcome.
Production planning the plan that is used in the production process that will
decrease cost and time and increase output.
Production control the managing of each individual task and action in the
production process to ensure the best result
Routing the process to determine the best and cheapest
sequence of operations
Scheduling the process to work out the time required to perform
each production task
Loading the process to assign work to workers and machines.
Dispatching converts the planning into action with instructions for
the movement of material, tools, and equipment,
checking of time and flow of work, and supervising the
process.
Following- up the process whereby the business makes sure the
scheduling and production systems are running
according to plan.
Inspection involves checking the quality of the process and the
final product.
Corrective action involves any adjustments to the planning process.
Safety management includes all the safety precautions that are essential to
ensure safety in the workplace.
Occupational Health and safety Act outlines the health and safety roles and responsibilities

2
 GDE BUSINESS STUDIES PRODUCTION FUNCTION CHAPTER 11

of all the stakeholders involved.

Output The amount of something produced by a person,

machine, or industry.
Inventory The quantity of goods owned and stored by a business
that is intended either for resale or as raw materials and
components used in producing goods.
Quality checks A procedure intended to ensure that a manufactured
product adheres to a defined set of quality criteria.
Bottlenecks It is a situation that stops a process or activity from
progressing.
Regulatory processes A rule of order having the force of law, prescribed by
superior authority.
Hazards Any agent that can cause harm or damage to humans,
property or the environment.
CEO Chief Executive Officer

QUALITY CONTROL

Learners must be able to:

 Define quality control
 Explain Total Quality Management (TQM) as part of quality management system
 Outline/Mention quality control bodies e.g. SABS, ISO, quality circles etc
Terms and Definitions

TERM DEFINITION

Quality control includes the inspection of the final product to ensure

that it meets the required standards
Quality management system a framework that businesses use to manage all key
processes, and to ensure that they meet the correct
standards.
SABS South African Bureau of Standards promotes and
maintains standards in South Africa.
Quality Level of excellence or a standard that causes
satisfaction for the customer.
TQM An approach that requires all aspects of an
organisation to focus on quality from production stage
to final consumption.
ISO Set of quality management system standards that
provide guidance on how to do quality assurance.

3
GDE BUSINESS STUDIES PRODUCTION FUNCTION CHAPTER 11

PRODUCTION FUNCTION
1 PRODUCTION PLANNING

1.1 Definition of production planning

 Refers to setting goals for the production department and establishing
policies/programmes and procedures to achieve these goals.
 It aims at decreasing cost and time and increasing output by organising the
resources and workplace to maximise efficiency.
 Production planning involves everything from the individual roles of staff, ordering of
stock, to the final delivery to the customer.
 Planning is done due to constant changes in the manufacturing process.
 Production planning must control the following aspects:
o Actual production
o Inventory/stock
o Factory layout
o Production costs

1.2 Aspects that must be considered during production planning

1.2.1 Planning
 Production planning of each aspect of the overall process.
 It includes the layout of a factory to suit the production system.
 It will determine the flow of materials to optimise the process.
 The planning has to cover all aspects of the production process such as the factory
layout based on the optimal flow of material.
 It includes decisions on the purchasing of the materials, machinery and equipment
and staffing.
 The process must include budgets, machines, and the calculation of how many
workers will be required to achieve the expected output.

1.2.2 Routing
 Involves planning is the sequence in which the production operations will take place.
 It establishes the best and cheaper way to sequence the production process.
 Setting up of the actual route which the materials must follow in the process to save
time and costs.
 Routine determines the following aspects:
o Quality and type of raw materials
o Manufacturing process and sequence
o Specification of the final product
o Cost analysis of the whole process

1.2.3 Loading
 Involves planning who will be responsible for each activity identified during the
routing process.
 Involves allocating every person/machine to their task.
 Loading calculates the amount of time each machine will need to operate during a
day.
 It also indicates which machines are not being used to their full capacity.
4
GDE BUSINESS STUDIES PRODUCTION FUNCTION CHAPTER 11

 It is linked to the output required to fulfil orders and prevent the overloading of
employees and machines.

1.2.4 Scheduling
 Scheduling involves the timing of the production process.
 It priorities certain jobs and determine which jobs need to be completed before the
next one can take place.
 Scheduling takes into consideration the routing and loading of both labour and
machinery.
 Involves calculating the time required to perform each activity in the manufacturing
process.
 Planning when each activity should start, and then calculating the time required to
complete the whole process.
 Time periods that need to be worked out considering the preparations of raw
material/delivery of raw materials/delivery of final products etc.
 Scheduling is affected by capacity and size of the business/availability of
staff/machinery and materials.
 The more detailed the schedule the better a resource it will be for controlling the
process.
 Determination of the time for delivering raw materials, and delivering final products,
and so on.

1.3 Advantages of production planning

 Planning allows an entrepreneur to ensure that every machine and worker is used to
their full capacity and not left with nothing to do.
 The company can ensure that it has the correct amount of supplies and stock at a
given time.
 This reduces wastage and unnecessary storage costs.
 Planning will prevent time being wasted and increase the number of final products.
 Planning process involves quality checks and ensures that the correct quality is
reached in the shortened possible time.

2.1 The meaning of production control

 Controlling of each individual task and action in the production process and
establishes the starting and finishing of each task.
 Production control ensures that production is undertaken according to the production
plan.
 It includes dispatching, following up, inspection, and corrective action.

2.2 Aspects that must be considered during production control

2.2.1 Dispatching
 Involves issuing production orders to start production. It provides orders for:
o Movement of materials, tools and equipment to the necessary locations
o Beginning the process
o Checking the time and costs involved in the process
o Checking the flow of work according to the routing

5
GDE BUSINESS STUDIES PRODUCTION FUNCTION CHAPTER 11

o Supervising the process.

o checking the time and costs involved in the process
 Dispatching is putting the production plan and schedule into action.
 It identifies the person who will do the work, supplies the specifications and materials
list.
2.2.2 Following up or controlling
 Following up makes sure the scheduling and production systems are running
according to plan.
 It deals with unplanned issues/problems
 Sorts out any misunderstandings in terms of job process requirements.
 Following-up on the progress of production helps to prevent bottlenecks and
misunderstandings.

2.2.3 Inspection
 Inspection involves the checking of the quality of the process and the final product.
 It is done at regular intervals during the production process as well as at the end.
 Inspection methods include the random selection of products
 Viewing/sampling and testing the product.
 Legal and regulatory processes are also checked to ensure that the necessary
standards are met.
2.2.4 Corrective action
 Corrective action involves any adjustments to the planning process.
 Staffing issues are also dealt with corrective action.

Corrective actions can include activities like:

o Service and repairing of machines
o Adjustments on routing, scheduling and loading
o Training of workers and sorting out other staff issues
o Transferring workers to other departments.

3 Safety management
3.1 Factory safety
 Safety precautions are essential in every workplace especially when dealing with
chemicals/dangerous machinery/harmful substances.
 All business should draw up their own safety policy and enforce necessary control
measures.

3.2 Reasons why businesses must manage safety in the workplace

 Workplace accidents can result in injuries and deaths.
 Publicity of workplace accidents will also impact negatively on an enterprise’s image.
 Regular or serious workplace accidents may even cause inventors to invest their
money in another company.
 Potential employees may decide not to accept a job offer at an enterprise where
many accidents have occurred.
 Employees may lose confidence in the business and leave it to join safer companies.

6
GDE BUSINESS STUDIES PRODUCTION FUNCTION CHAPTER 11

7
GDE BUSINESS STUDIES PRODUCTION FUNCTION CHAPTER 11

3.3 Requirements for a safe environment

For a business to be safe it needs the following:
o A safety policy
o Visible warning signs
o First aid kits
o Safe working environment
o Precautionary measures when handling machinery.

Safety policy
 Businesses should draw up their safety policy and enforce necessary control
measures.

Visible warning signs

 The necessary safety warnings and signs should be visible in the workplace.
 The business should inform employees of any dangers in the workplace.

First aid kits

 Businesses are required to have an up-to-date first aid kit in an easily accessible
place.
 According to law, at least one employee should be trained in first aid, and he/she
should be available on site.

Safe working environment

 There should be no hazardous substances that can cause damage, disease, or injury
to employees or visitors.
 Information, instructions, and training should be provided to all employees.
 Workers should be informed of the potential safety and health hazards.

3.4 Precautionary measure that businesses should take when handling

machinery
 Familiarise employees with safety procedures.
 Develop a culture of safety in the workplace.
 All machinery and equipment must be correctly installed and safe to use.
 Workers must be properly trained on how to use machinery and must be informed
about the risks when using the machinery.
 Regular safety checks must be carried out and machinery should be maintained and
serviced regularly.
 Workers need to wear protective clothing/gear such as overalls/ hard hats/ safety
helmets/masks/heavy-duty safety boots/welding goggles when working with
machinery and equipment.
 Hard hats should be worn on construction sites at all times.
3.5 The purpose of the Occupational Health and Safety Act
 Requires every business to establish and maintain, a safe work environment that is
without risk to the health of the workers.
 Review the efficiency of health and safety measures.

8
GDE BUSINESS STUDIES PRODUCTION FUNCTION CHAPTER 11

 Outlines the roles and responsibilities of employer, employees, manufacturers,

designers, importers, suppliers and sellers.
 Clarifies the roles and duties of the health and safety representative and committee.
 Requires that the main dangers and potential incidents of the workplace be identified
and eliminated.
 Examines the causes of incidents by any employee relating to the employee’s health
and safety at work.
 Expects employees to co-operate and follow the necessary instructions and report
any unsafe situations.
 Makes presentations to the employer concerning general health and safety issues at
the workplace.

3.5.1 Ways in which businesses can comply with the Occupational Health and
Safety Act.
 Workers must be provided with protective gear to protect themselves against
potential dangerous situations.
 First aid boxes must be readily available at the workplace and in the factory.
 Fire extinguishers must be readily available at the workplace and in the factory.
 Machinery must be maintained at regular intervals and repaired promptly.
 Implement the SAFE steps as follows:
o S: spot the hazard
o A: assess the risk
o F: fix the problem
o E: evaluate the results

4 QUALITY CONTROL
4.1 Definition of quality control
 Refers to the process of ensuring that goods or services are made to consistently
high standards.
 It is the inspecting of the final product to ensure that it meets the required standards.

4.2 Meaning of a quality management system

 A quality management system is a framework that a business uses to manage key
processes.
 It enables business processes meet the correct standards
 This system that includes quality control and quality assurance.
 Quality assurance is the process carried during and after the production process.
 Quality control is the inspecting of the final product to ensure that it meets the
required standards.
 Businesses implements a Total Quality Management system as part of quality
management system.

4.3 Total Quality Management (TQM) as part of quality management system

 Total Quality Management involves every part of the business, and quality is
everyone’s responsibility, including every department and employee.

9
GDE BUSINESS STUDIES PRODUCTION FUNCTION CHAPTER 11

 The main aim of TQM is to improve the quality of products and services in order to
satisfy the needs of customers beyond their expectations.
 Continuous improvement is the foundation of TQM. This means that all techniques,
systems and machinery used must be subjected to continuous improvement.
 It is the responsibility of each employee to take care of his/her own quality.
 Machines and equipment’s are checked regularly.
 All input including raw materials are checked thoroughly and discussions are held on
how to improve quality.
 Management ensures that each employee is responsible for the quality of his/her
work/actions.

4.4 Quality control bodies

4.4.1 South African Bureau of Standards (SABS)
 The SABS is an organisation established by the government to ensure that South
African businesses meet a range of standards, with regard to health, safety and the
environment.
 The primary responsibility of the SABS is to develop and publish standards for
products and services.
 The SABS performs the following functions:
o Sets and publishes national standards
o Provides training regarding all aspects of standardisation
o Testing products
o Provides information on international and national standards
o Tests and certifies products and services against the standards
o Monitors and enforces legal regulations
o Promotes design excellence
 Business products must undergo thorough testing to ensure that they meet the
necessary standards then they will earn an SABS mark.
 The SABS mark gives the assurance that the product complies with safety
requirements.

4.4.2 International Organisation for Standardisation (ISO)

 It sets out procedures a business should follow to ensure that its final product meet
its own promises and its customers’ expectations and that quality improves over time.
 ISO9000 is set of internationally recognised standards set for different industries.
 ISO standards are used in many countries all over the world.
 Industries are able to measure their own quality management system against these
international standards.
 Accreditation with ISO acts as a signal to customers that the business takes its
quality commitments seriously and continually strives to improve its operations.

4.4.3 Quality cycles

 These are groups of employees who work in different departments e.g. production,
marketing, purchasing and financial, but who deal directly or indirectly with the same
product or service.
 They meet regularly to discuss how quality, efficiency and productivity could be
improved.
10
GDE BUSINESS STUDIES PRODUCTION FUNCTION CHAPTER 11

 They analyse problems with the production process and brainstorm solutions.
 Employees are often best placed to know how to improve quality.
 Typical topics discussed by quality circles include improving safety, improving
product design and manufacturing processes.
 The ideal size of a quality circle is eight to ten members.
 Quality circles form part of TQM.

11