Methods of operations (09)

Question 1

SUMMARY

Answer 1

In summary, the following are covered in this topic:
1. The three main production processes are job, batch or flow production method.
2. Job production involves producing a one-off item specially designed for the
customer. It is suitable for high variety and low volume type of demand.
3. Batch Production involves producing a limited number of identical products,
each item in the batch passes through one stage of production before moving
on to the next stage.
4. Flow Production method involves producing items in a continually moving
process and is often used for production of large numbers of standardised units
of product.
5. The operations manager need to take into account the nature of the product
and the size of the market in considering the choice of the production method.
6. A business is capital intensive when it employs more machinery relative to
labour.
7. Businesses that are labour intensive use a larger proportion of labour than
machineries.
8. The nature of the product, size of market, relative cost of labour and capital and
the quality and quanity of education in the country influence the decision of the
business to be more capital or labor intensive.