Making operational decisions Flashcards
production
transformation of resources into finished goods or services
goods
physical products
services
non-physical items
methods of production
job production
batch production
flow production
what factors do the method of production used by a business depend on?
level of output
nature of product
wether product is standardised or customised
level of automations used in production
job production
manufacturers produce one product at a time as ordered by the customer
job production advantages
high quality product
motivated and highly skilled workers
customised products can be produced
job production disadvantages
production is slow
labour costs are high
flow production
continuous manufacturing of standardised products, usually on a production line
flow production advantages
low unit cost due to economies of scale
rapid production usually highly automated
flow production disadvantages
customisation is difficult
capital equipment can be expensive to purchase
batch production
groups of the same product are produced as a batch
batch production advantages
workers can specialise
production can take place as the previous batch starts running out
batch production disadvantages
requires careful coordination to avoid shortages
money is tied up in stock
completed products need to be stored
flexibility in production
how easy it is to install machinery and switch to different machinery which is required to manufacture different products
3D printers
digital design is uploaded and the printer produces the product with minimal labour costs
impact of new technology on cost
with 3D printing, cost of manufacturing is reduced as there is no need for expensive tooling
impact of new technology on productivity
with 3D printing, products can be produced quickly and easily, with minimal lead times
allows business to bring new products to market faster and respond more quickly to changing customer preferences
impact of new technology on quality
3D printer allows for precise and accurate production of complex shapes and designs, resulting in higher quality products
impact of new technology on flexibility
3D printing products can easily be customised to meet the specific needs of customers
3D printing allows for small production runs which reduces the costs of specific job production