Methods Of Production Flashcards
What are the different types of production?
Job, batch, flow and cell
What is job production?
Production of a single item, usually by one person. Labour intensive and usually for unique product to satisfy customer needs. Usually done by small, local businesses.
What are the advantages of job production?
- lower costs than others bc less stock held
- can meet customer needs exactly
- usually high quality - only focused on one product
- easier to motivate as can see the end result of their work
- less cash held up in sock
- easier to add value to specialist work produced
What are the limitations of job production?
- no opportunities to benefit from economies of scale
- higher costs of production
- labour more skilled so harder to find + more expensive to employ + train
- slower process usually
- difficult to gauge cost of jobs - unique
What is batch production?
Where there’s set procedure + stages that production process goes through in order to create a product. One stage must be completed before moving to next.
What are the benefits of batch production?
- can produce in larger quantities than job
- may be some economies of scale depending on batch sizes
- generally faster than job
- greater quantities produced so unit costs should be lower (eos)
- more flexibility than flow production
Limitations of batch production
- time delay between batches (downtime) nothing being produced
- changeover of machine parts from one batch to a next can take time (downtime)
- inc downtime between batches reduces output compared to flow
- more stock held - cash tied up in stock (reduces cash outflows)
- variation not as great as job
- less variety of work tasks less motivating so less productive workers
Flow production
A continuous process where a product is assembled on a production line. Employees have specific tasks for each stage of individual processes. Produce vast quantities of standardised product. Often automated (capital-intensive)
Benefits of flow production
- gain befits of eos - reduce unit cosy of production
- benefit from division of labour and reduce costs further
- can produce standardised products in large numbers more quickly than other methods
- little downtime comp to batch bc continuous process - production levels optimised
- remain competitive bc of low unit costs + mass production - enable demand to be met
Limitations of flow production
- initial set up costs high bc of automation
- time consuming to plan flow system + timings to ensure moving at all times
- lacks flexibility to produce wide range of products
- if line stops then whole productions process stops
- repetitive nature of tasks means employees less motivate - affect productivity, absenteeism + labour turnover
- large amount of work in progress stock
- greater reliance on suppliers to deliver on time
Cell production
A form of team working where employees work in cells (teams) who are responsible for the whole production process of a given product
Benefits of cell production
- improved working conditions bc employees in teams and responsible for their cell - motivating + reduce boredom + absenteeism
- incentive to ensure quality of work is high bc responsible for work in their own cell - reduces waste and so costs
- encourages sense of responsibility and pride in heir work
- opportunities for job rotation in team
Division of labour
When a job/task broken down (divided) into separate tasks. Raise output per person bc trained to perform specific task repetitively - reduce unit costs per output
Downside of cell production
Repetitive task = minimal motivation —> boredom, absenteeism, labour turnover
Impact of division of labour on stakeholders
- shareholders: inc efficiency + productivity —> inc profits + dividends
- suppliers: supply moe components due to inc production (but could be squeezed for lower prices - bargaining power)
- employees: bored or demotivated bc of repetition
- customers: buy product at lower price if lower unit costs
- management: bonus rewarded as inc production
