Ch 23 Operations planning Flashcards
Define operations planning
Preparing input resources to supply products to meet expected demand
Define CAD
Computer-aided design. Using computers and IT when designing products
Define CAM
Computer-aided manufacturing. The use of computers and computer-controlled machinery to speed up the production process and make it more flexible
Influences of CAD and CAM on operations decisions
Reduce unit costs (increase efficiency) and improve flexibility of operations
Define operational flexibility
The ability of a business to vary both the level of production and the range of products following changes in customer demand
Ways operational flexibility can be achieved
Increase capacity by extending buildings and buying more equipment - this is an expensive option
- Hold high stocks - but these can be damaged and there is an opportunity cost to the capital tied up
- Have a flexible and adaptable labour force - using temporary, part time contracts reduce fixed salary costs but may reduce worker motivation
- Have a flexible flow-line production equipment
Define process innovation
The use of a new or much improved production method or service delivery method
Examples of process innovation
- Robots in manufacturing
- Computer tracking of stocks
- Using internet to track the exact location of parcels being delivered worldwide
Define job production
Producing a one-off item specially designed for the customer
Define batch production
Producing a limited number of identical products - each item in the batch passes through one stage of production before passing onto the next stage
Define flow production
Producing items in a continually moving process
Define mass customisation
The use of flexible computer-aided production systems to produce items to meet individual customers’ requirements at mass production cost levels
Main features of job production
- Single one-off items
- Highly skilled workforce
Main features of batch production
- Group of identical products pass through each stage together
- Labour and machines must be flexible to switch to making batches of other designs
Main features of flow production
- Mass production of standardised products
- Specialised, often expensive, capital equipment but very efficient
- High steady demand for standardised products
Main features of mass customisation
- Flow production of products with many standardised components but customised differences too
- Flexible and multi-skilled workers
- Flexible equipment - often computer controlled to allow for variations in the product
Advantages of job production
- Able to undertake specialist projects or jobs often with high value added
- High levels of worker motivation
Disadvantages of job production
- High unit production cost
- Time consuming
- Wide range of tools and equipment needed
Advantages of batch production
- Some economies of scale
- Faster production with lower unit costs than job production
- Some flexibility in design of product in each batch
Disadvantages of batch production
- High levels of stocks at each production stage
- Unit costs likely to be higher than flow production
Advantages of flow production
Low unit costs due to constant working of machines, high labour productivity and economies of scale
Disadvantages of flow production
- Inflexible - often very difficult and time consuming to switch from one type of product to another
- Expensive to set up and maintain the machinery
Advantages of mass customisation
Combines low unit costs with flexibility to meet customers’ individual requirements
Disadvantages of mass customisation
- Expensive product redesign may be needed to allow key component to be switched to allow variety
- Expensive flexible capital equipment needed
