4.3 Scales of Production Flashcards
What is scale of production?
Refers to the volume/ quantity a product will be produced at. It determines the type of production process used
What is one-off production?
When one or few items are produced which are usually made for specific needs which requires specialized skills, tools, and time.
What are the advantages and disadvantages of one-off production?
Highly customizable to meet client needs
Allows for development of high fidelity prototype to then be used for batch/ mass production
High production costs
Time consuming
Does not take advantage of economies of scale
What is batch production?
A set number of items to be manufactured which is typically broken down into steps
What are the advantages and disadvantages of batch production?
Some customization of parts
Able to adjust to market demands or seasonal items
Lower capital outlay as same production line can be used for several products
Storage of products raises the cost per item
What is mass production?
The production of large amounts of standardized products
What are the advantages and disadvantages of mass production?
Low unit costs (economies of scale)
Low labor costs
Little/ no customization due to high initial investment
Lack of motivation from workers (monotonous tasks)
What is continuous flow?
A highly automated process used for the large-scale production of goods
What are the advantages and disadvantages of continuous flow?
Low unit costs (economies of scale)
Minimal workers needed as it is highly automated
Minimal flexibility due to the standardized process and workflow
High initial investment costs
What is mass customization?
A production methods that manufactures products to individual customer needs produced using CAM systems
What are the advantages and disadvantages of mass customization?
Highly customized to needs/ wants
Less goods need to be stored as inventory (reduced overhead costs)
Long layover time from when the product is customized to reaching the consumer (no stock)
Dependent on integrated systems to be successful (CIM, marketing…)
