operations mgt Flashcards
job production
the output of a customised good or service that meets the specific needs of a particular customer
adv of job production
- flexible
- exceptionally high standard
- premium price can be charged
dis of job production
- high labour costs
- long production times
batch production
producing a set of identical products with work on each batch being fully completed before production switches to another batcg
adv of batch production
- enables greater economies of scale
- enables firms to make a variety of different products thereby reducing spreading risks
- greater choice for customers
disadv of batch production
- less flexibility for customers
- greater need for capital expenditure (machinery)
- risk of technical problems or breakdowns
mass (flow) production
different operations are carried out continuously with large output of STANDARDISED products, uses automated production process
adv of mass (flow) production
- economies of scale
- lower labour costs (due to automation)
- faster rate of production
- easier to increase output in response to rising demand
disadv of mass (flow) production
- lower profit margins (must sell a large volume of output to break even)
- no flexibility
- requires effective stock management
- high startup costs
mass customization
large scale mass production of goods with the flexibility to adapt to the output to the varying needs of different customers
(np customizing mass produced cars)
adv of mass customization
- offers greater choice for customers and high degree of customer satisfaction
- enables far more customers to have individual needs and preferances
- higher profit margins due to premium prices
disadv for mass customization
- relies on creating more options to entice customers
- requires a greater need for effective stock control (inventory management) whixh is time and money consuming
- challenging ti forecast sales and trends
- more exoensive than mass produxtion
lean production
making tbe production provess effocient and reducing waste
aims to minimise costs by eliminating waste, making the organisation more efficient
LESS WASTE
GREATER EFFICIENCY
JIT just in time
stock scheduled to arrive precisely when needed in production, scheduled,
JIC just in case
excess amount of stock in the vase kr an unexpectedly large order or a problem with the supply chain
reasons for a specific location of prosuction
- cost and availability of land
- cost and availability of labour
- nearness to markets
- local infrastructure
- government incentives (dubai)
- clustering (locate near other firms operating in related industries to benefit from passing trade)
- strategic reasons
- costs of living
bulk gaining industries
make products that weight more after the produxtion
bulk reducing industries
produxts that weight less afyer the production
