5.2 - Operation Methods

Question 1

How is production divided

Answer 1

Production is generally divided in different methods that allow for an understanding of how the manufacturing process is to take shape.

Question 2

What is the main aim of production

Answer 2

Maximisation of efficiency without the sacrifice of quality

Question 3

What are the 4 types of production methods

Answer 3

• job porduction
• batch production
• mass/flow standardised production
• mass individualised customisation

Question 4

What is job production

Answer 4

Production of a special one off products made to a specific order

Question 5

What is batch production

Answer 5

Production of a group of identical products

Question 6

What is mass/flow standardised production

Answer 6

Production of a high volume of identical standardised products. Flow production process production, and line production are alternative terms that stress one pareticualr aspect of the mass production process

Question 7

What is mass individualised customisation

Answer 7

This manufacture technique combines mass production with the personlization of custom made products. It is particularly important for marketing purpose, as customers can personita the goods they order and make them unique, hence the alternative names of made to order or built to order

Question 8

What is job production associated with

Answer 8

normally associated with a highest end of the market where the emphasis is in quality and originality so the producer can charge high prices. Job production entails the production of one product at a time with a “market-oriented approach” and the customer deciding how they want the product to be – also called “customization

Question 9

What are some examples of job production

Answer 9

Examples range from aircraft manufactures such as Boeing and Airbus to a wedding dress and a wedding cake, and a tailored suit. Moreover, a private tutor instead a class of 20 students could also be considered as an example.

Question 10

What are the general characteristics of job production

Answer 10

Therefore, job production generally is labour intensive, with a workforce that is highly skilled and also generally with machinery that is specialized.

Question 11

What are the 5 advantages of job production

Answer 11

• Very motivational for workers as it is not monotonous but varied and results in pride of accomplishment.
• Requires less management coordination and control
• Clients get exactly what they want
• Due to the labour-intensive nature of focus the quality is higher
• The job can be modified to meet the needs and tastes of the consumer

Question 12

What are the 4 disadvantages of job production

Answer 12

• The overall costs of manufacturing is highest when compared to the other production methods, this due to the highly trained labour and special equipment
• Due to the specialized use of equipment, these may not be convertible to any other use and therefore serve a limited purpose
• The demand for special jobs will require longer production time and therefore delay income
• There is a risk that the product might fail because of the client’s lack of knowledge.

Question 13

What is batch production associated with

Answer 13

Normally associated with the middle of the market where the emphasis is in quality and affordability. Batch production therefore uses a different degree of factors of production where compared job production. With batch production a greater number of products are produced (instead of one at a time)
There are similarities in the products being produced although the number is limited to a set

Question 14

What is an example of batch production

Answer 14

A good example would be the production of a particular style of car seat or baked goods. When the batches are produced, they can be tailored to meet the needs and demands of a group of consumers with similar tastes and wants.

Question 15

Compare batch and job production

Answer 15

Hence, as compared to the job production method, a larger number of the products can be manufactured at a lower cost of production. Workers are not as engaged, and machines are more active. Therefore, this process is more capital intensive.

Question 16

What are the 5 advantages of batch production

Answer 16

• Each batch can be designed to meet the consumers wishes, therefore there is some degree of choice in this production method as the alteration of machines allows for this flexibility
• There is the likelihood that workers will work in teams and produce varied products. The costs of these employees will invariably be lower as they do not need to be highly skilled.
• The costs associated with the machines will be lower because the produced goods will be similar and hence standardized.
• Batch production is more beneficial than job production since 20 or 30 units can be replicated as opposed to one item at a time as we see in job production

Question 17

What are the 5 disadvantages of batch production

Answer 17

• Lack of motivation in repetitive batch output. Workers will not have the satisfaction of being a part of the entire process and thereby will not feel the sense of accomplishment seen in Job production.
• In the event the batch order request is of a low number, the related manufacturing costs of having to alter the equipment to meet the new production requests may outweigh the benefits of each batch production
• The sizes of the batches are dependent of the capacity of the machinery and labour allocated to them, which might not be enough.
• The costs associated with adjusting and servicing the production machinery are not only time related, but labour related.

Question 18

Define mass production

Answer 18

it refers to the production of a high volume or standardized products, typically using a continuous flow of raw materials along the assembly line. it is all about quantity.
It is a continuous process that is very capital intensive and hence a high volume of products emerge as a result. Large inventories of raw material are needed to continuously feed the manufacturing

Question 19

What is an example of mass production

Answer 19

Examples range from the bottling industry to newspaper companies and the sweets and confectionaries industries. The process is repetitive; fast paced and normally requires the use of computers

Question 20

What are the 4 advantages of mass production

Answer 20

• Economies of scale. Because of the high volume of units produced, the per unit cost drops dramatically
• The labour is restricted to machine specialists and supervisors. Hence labour costs are reduced significantly
• Production can continue uninterrupted at all times of the day and all dates of the year in order to meet market-based demands

Question 21

What are 4 disadvantages of mass production

Answer 21

• set up installing machines will be high
• the repetitive nature of mass production will severely affect motivation and moral will suffer
• Due to the mass production of units, quality control will suffer
• If the machines breakdown, the costs of repair can be very high

Question 22

What is the set up time for job production

Answer 22

• there is a long set up time as there is a new set up for every new job

Question 23

What is the set up time for batch production

Answer 23

As set up is usually a modification of an existing process, set up time can be reasonably fast. Otherwise it is as for mass production

Question 24

What is the set up time for mass production

Answer 24

There is a very long set up as it talked time to synchronise the while process

Question 25

What is the cost per unit for job production, batch production, mass production

Answer 25

1. High
2. Medium
3. Low

Question 26

Compare the capital for job production, batch production and mass production

Answer 26

1. This can be flexible as it depends on specific use
2. A mixture of machines is used, but this method us based on general purpose machines
3. This can involve large numbers of general purpose machines designed for a specific function

Question 27

Compare the labour between job production, batch production and mass production

Answer 27

1. High skilled workers are needed and may be craft workers
2. Workers are semi skilled and need to be flexible
3. Workers are unskilled and need minimum training

Question 28

Compare the production time between job production, batch production and mass production

Answer 28

1. This is likely to be long
2. Once set up, production can be swift
3. Production swift

Question 29

Compare the stock levels between job production, batch production and mass production

Answer 29

1. This involves low quantities of raw material and finished stock by high amounts of work in progress
2. high qualities of raw materials are needed. There will be medium amounts of work in progress and finished stock
3. There will be high quantities of raw material and finished stock and low amount of work in progress

Question 30

Define mass customisation

Answer 30

it is an operational approach that integrates the advantages of mass production, such as cost efficiencies through economies of scale, with the tailored aspects of job or customized production

Question 31

What does the method of mass customisation involve

Answer 31

This method involves the extensive mass production of goods while maintaining the adaptability to tailor the product to accommodate the requirements of individual customers, incorporating “customized/tailored” features to meet their specific needs or preferences.

Question 32

What are 3 advantages of mass customisation

Answer 32

1. It offers greater choice for customers and a higher degree of customer satisfaction, and therefore can create competition advantages of the business
2. The flexibility of mass customization enables far more customers to have their individual needs and preferences met, without the high costs associated with job production.
3. It enables the business to enjoy higher profit margins due to the premium prices charged for mass customized products.

Question 33

What are the 3 disadvantages of mass customisation

Answer 33

1. Mass customization relies on creating more options (or additional extras) to attract customers, but such investments can be highly expensive for the business.
2. It requires a greater need for effective stock control (inventory management), which can be both time consuming and costly for the business.
3. It can be challenging to forecast sales and trends due to the wide range of options made available to customers.

Question 34

How does all these methods of production affect business functions

Answer 34

The target market – when a firm produces high volumes of a low-cos product for a large market of people with low income

The state of existing technology – since this can limit how flexible the production can be.

The availability of resources – fixed capital, working capital, and human capital.

Government regulations – when firms might have to meet certain target of recycling, for example.