Production Technology Flashcards
PRODUCTION TECHNOLOGY
Refers to the way capital, technology, natural resources, and labor are combined to create final goods.
production technology
include any machinery that makes creating a tangibAle physical product possible for a business.
Labor –intensive technology
A production technology that requires many workers and relatively few machines
Capital – intensive technology
A technology that uses many machines and relatively few workers.
DISADVANTAGES OF PRODUCTION TECHNOLOGY
-As new technology continues to evolve, small-business owners must make key decisions regarding the need to change their existing production process. Although implementing a new production technology may enhance your operation over the long term, the process can pose challenges. Using new technology may even present disadvantages for your business.
DISADVANTAGES OF PRODUCTION TECHNOLOGY
-Expenses
-Resistance to change
-Job Loss
-Implementation and maintenance issues
Expenses
Implementing new technology may drain the finances of a small business. If you need to finance the purchase of new production equipment, the additional debt load can create a heavy burden. You also need to consider the cost of reduced productivity while your workers learn how to operate the equipment and any associated new production processes. Depending on the nature of the equipment, you may need to make changes to or expand your facility to accommodate it.
Resistance to Change
If you’ve been using the same production processes for many years or employ a large number of veteran employees, a new production technology may not be welcomed with open arms. Any type of change can be met with resistance, especially by workers who are comfortable and set in their ways. Before implementing the change, it may be helpful to meet with your employees and demonstrate how the new technology can make their jobs easier in the long run.
Job Loss
Unfortunately, implementing new technology could mean the loss of jobs, especially when automated processes can perform the same work more cheaply and efficiently than humans. You may have to make the painful decision to let go long-term, loyal employees in favor of a new production process that allows you to remain competitive. Remaining employees may resent your actions or even fear they could be next, creating a reduction in morale throughout your company.
Implementation and Maintenance Issues
While implementing new production technology, there are bound to be “bugs” in the system that could even stop production for a period of time. A machine or process may not perform in the manner you need, and it may require additional tweaking to gain the necessary results. Even after everything is running efficiently, malfunctions may occur on occasion. Unless there’s someone on your staff possessing the skills needed to make the corrections, you may need to spend additional time and money bringing in an expert.
The Advantages of Production Technology
Product usually high quality
Producer meets individual customer needs
Greater job satisfaction – involved in all stages of production
Three types of production systems:
Custom production
Job-lot production
Line production
CUSTOM PRODUCTION
Custom production are characterized by manufacturing one or few quantity of products designed and produced as per the specification of customers within prefixed time and cost.
This is a low volume and high variety of products.
One person or several people work on one product at a time. They do all the processes on the one product until it is finished.
This type of manufacturing is generally used when only one product of a certain type is wanted.
CUSTOM PRODUCTION IS CHARACTERIZED BY;
- High variety of products and low volume.
- Use of general purpose machines and facilities.
- Highly skilled operators who can take up each job as a challenge because of uniqueness.
- Large inventory of materials, tools, parts.
ADVANTAGES OF CUSTOM PRODUCTION
- Because of general purpose machines and facilities, variety of products can be produced.
- Operators will become more skilled and competent, as each job gives them learning opportunities.
- Full potential of operators can be utilized.
- Opportunity exists for Creative methods and innovative ideas.