Chapter 5.2 - Operations methods Flashcards
Batch production
Involves producing a set of identical products. Work on each batch is fully completed before production switches to another batch
Capital intensive
Means that the manufacturing or provision of a product relies heavily on machinery and equipment, such as automated production systems
Flow production
A form of mass production that uses continuous and progressive processes, carried out in sequence. When one task is completed, the next stage of production starts immediately
Mass customization
An operations method that uses flexible manufacturing systems to mass produce products that meet individual consumer needs and wants
Mass production
The large-scale manufacturing of a homogeneous (standardized) product. Unit costs of production are relatively low when using mass production methods
Job production
Involves the manufacturing of a unique production or one-off job. The job can be completed by one person or by a team of people
Labor intensive
Means that production relies heavily on labor inputs, so the cost of labor accounts for the largest proportion of a firm’s overall production costs. It is the most apparent in the provision of personalized services
Standardization
Means producing an identical or homogeneous product in large quantities