5.2 Operations methods Flashcards
operations methods
refer to the specific methods by which production takes place
-job production
-batch production
-mass/flow production
-mass customisation
job production
customizing an individual project from start to finish, tailor-made to meet the specific requirements of the client.
- Wedding dress
- Painting
- Haircut
a single worker or a group of workers handle the complete job. can range from low technology to high technology
pros and cons of job production
pros
-quality of production because skilled labour is used
-motivation
-flexibility
-uniqueness
cons
-time consuming
-labour intensive
-long time lag between order and payment
-few economies of scale
-irregularities of orders
Batch Production
Involves producing number of identical products. Work on each batch is fully completed before production switches to another batch, using same team and machinery.
-highly suited to businesses that make a range of products, clothing retailers like H&M and Gap have their garments produced in batches of different sizes and colours.
advantages
-economies of scale
-specialisation can lead to increased productivity
-a variety of products are made
-variety can reduce risks of producing a single product with little sales potential
Cons
-Storage is important as batch production can result in a high amount of stock. However this increases costs and insurance against damage
-boredom
-inflexibility
-high production costs
Mass production
manufacturing of large amounts of a standardised product. involves the assembly of individual components, bought from other suppliers.
-tends to be capital intensive, meaning the manufacturing or provision of a product relies heavily on machinery and equipment, such as automated production systems. Hence, the cost of capital accounts for the largest proportion of a capital-intensive firm’s overall production costs
-uses specialisation, using dedicated capital equipment and skilled labour resulting in higher levels of productivity. thus avg costs of production are low.
- standardised products are produced on a large scale.
e.g buttons, lego, motor cars, pills
Flow production
Is a form of mass production that uses continuous and progressive processes, carried out in a sequence. when one task is completed the next stage of production starts immediately.
-assembly lines that are kept running, 24 hours a day, every day to maximise output and to elimate waste.
-relies entirely on automated systems, with few workers required.
Cocacola uses flow production to make 10,000 bottles in s dingle factory every minute of the day.
eg. bottles, beer, toothpicks, screws
pros and cons of mass/flow production
pros
-large volumes of output
-cost-effective operations method
-use of dedicated machinery and equipment (low defect rate)
-low labour costs
cons
-monotonous work
-limited choice
-expensive installation and running costs, also fixing costs.
-inflexible systems
Mass customisation
us of flexible manufacturing systems to mass produce products that meet individual consumer need and wants.