Unit 5 Operations Management Production Methods. Learning Objectives To describe and compare the...
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Transcript of Unit 5 Operations Management Production Methods. Learning Objectives To describe and compare the...
![Page 1: Unit 5 Operations Management Production Methods. Learning Objectives To describe and compare the features and applications of job, batch, line, flow and.](https://reader036.fdocuments.us/reader036/viewer/2022070407/56649e375503460f94b26878/html5/thumbnails/1.jpg)
Unit 5Operations Management
Production Methods
![Page 2: Unit 5 Operations Management Production Methods. Learning Objectives To describe and compare the features and applications of job, batch, line, flow and.](https://reader036.fdocuments.us/reader036/viewer/2022070407/56649e375503460f94b26878/html5/thumbnails/2.jpg)
Learning Objectives
To describe and compare the features and applications of job, batch, line, flow and mass production
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Production Process Explained
• A firm must purchase all the necessary inputs and then transform them into the product (outputs) that it wishes to sell
• How well organised a firm is at undertaking this transformation process will determine its success. This is known as the productive efficiency of a firm and it will want to be as efficient as possible in transforming its inputs into outputs
• Ultimately, the objective of the production process is to create goods and services that meet the needs and wants of customers. The needs and wants of customers will be met if a business can produce the correct number of products, in the shortest possible time, to the best quality and all at a competitive price
![Page 5: Unit 5 Operations Management Production Methods. Learning Objectives To describe and compare the features and applications of job, batch, line, flow and.](https://reader036.fdocuments.us/reader036/viewer/2022070407/56649e375503460f94b26878/html5/thumbnails/5.jpg)
Main inputs into production‘Factors of production’
• Land & raw materials• Labour – workforce• Capital – machines and equipment• Enterprise – ideas, organisation and
willingness to take a risk over a product
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Things to consider when producing goods
• The cost of production
• The quality required
• The quantity needed
• What customers want
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Main types of production
• Job production• Batch production• Flow production• Mass production• (Mass customisation)• Cell production (HL ONLY)
![Page 8: Unit 5 Operations Management Production Methods. Learning Objectives To describe and compare the features and applications of job, batch, line, flow and.](https://reader036.fdocuments.us/reader036/viewer/2022070407/56649e375503460f94b26878/html5/thumbnails/8.jpg)
Job Production• One-off or small number of items produced• Normally made to customers specifications (e.g.
wedding cake or building project)• Often undertaken by small, specialist businesses• Examples:– Architects– Plumbers– Ship builders– Road builders
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Advantages & disadvantages of job production
Advantages
• Products are usually high quality• Products are made to measure• Workers gain more satisfaction from seeing the finished
product• Workers are well motivated & take pride in their work
Disadvantages
• High cost of production• Skilled labour is more expensive, but is required to carry out
the task• Selling prices are higher because it is labour intensive• Goods take a long time to make and it is difficult to speed up
production
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Batch Production
• What is involved– Similar items are produced together– Each batch goes through one stage of production process
before moving onto next stage– Example: a furniture factory that makes 20 chairs, then 10
bookcases, and then 15 dining tables • Aims– Concentrate skills, workers each specialise in one job– Achieve better use of equipment and so produce good
quality products more economically than manufacturing them individually
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Advantages & disadvantages of batch production
Advantages
• Customers different demands can be met• As goods are made for a specific customer, the cost of storing
finished goods will be reduced• Use of specialist machines and automation reduce costs
Disadvantages
• It takes time to switch machinery from one setting to another - this increases costs
• Components for different jobs may need to be stored – this increases costs
• Tasks may be repetitive and boring, demotivating workforce
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Flow Production• What it involves– Producing large numbers of goods continuously – Product moves continuously through production process– Usually on a conveyor belt. Called line production– When one task is finished next task must start
immediately– High level of automation & little manpower. This is
called capital intensive– Examples – Cars, Computers, chocolates
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Advantages & disadvantages of flow production
Advantages
• Large amounts can be made• Economies of large-scale production = lower unit cost• Machinery & automation can be used• Improved use of technology has allowed variations in designs to be pre-
programmed into machines• Continuous, often 24-hour production is possible
Disadvantages
• May not be high quality• Expensive to set up• Stock costs may be high as a lot of parts may have to be stocked to keep
production going• A problem at any point on the production line may cause a total shut
down• Jobs may be repetitive and boring causing demotivation amongst
workforce
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Mass Production
• What it involves– Large scale production where a business produces
large numbers of same item– Little, if any, “customisation” of product
• Typical features– A standard product (little or no variation in style or
quality)– Using standard parts– Built using standard equipment e.g. washing
machines
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How to deicide which method to chose
• This depends on a number of factors– The amount likely to be sold– The nature of the product to be made– What the costs will be– The variety of goods expected by the customer
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Production and Seasonal Demand
• Changes in seasonal demand can mean a requirement for:– Lots of stock at particular times of year & little demand at other times– E.g. demand for children’s toys is heavily-focused on pre-Christmas
period• Implications for producers
– May make sense to “build for stock” during periods of quiet demand– Make use of production equipment that would otherwise lie idle
• Produce of perishable products– Here, production process needs to be designed flexibly– Additional production capacity can be added when close to time when
demand increases (e.g. bring in more part-time, temporary employees)
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Task
• For each of the following products decide which would be the most appropriate method of production. Explain your reasons in each answer– Tubs of different types of ice-cream– Tins of baked beans– Dental care– Pairs of trainers– Baking loaves of bread– A jeweller making an exclusive tiara
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Cell Production
• What it involves– Splitting flow production into self contained groups
that are responsible for whole work units– A form of flow production– Every cell has a team leader
• Typical features– A standard product (little or no variation in style or
quality)– Using standard parts– Built using standard equipment e.g. washing machine
HL
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Task - Video case smart production