5.2|Operation methods Flashcards
4 operation methods
job production
batch production
mass flow production
mass customization
job production
labour intensive
advantages:
most flexible production method
premium price can be charged
disadvantages:
high labour cost
long production times
batch production
produce a set of identical products, after completing one batch then production switches to another batch which may have slightly different specification.
advantages:
eos
customer have a greater choice
disadvantages:
less flexibility for customers
a greater need for capital expenditure
mass flow production
standardized products
standardization (products are mass manufactured)
capital intensive
advantages:
eos
lower labour cost (few people)
disadvantages:
technical breakdowns cause major problem
staff easily demotivated
mass cutomization
large-scale mass production of goods but with the flexibility to adapt the output to the varying needs of different customers.
advantages:
higher profit margins due to premium prices
greater choice for cutomers
disadvantages:
expensive