1 Flashcards
(42 cards)
A manufacturing process in which goods are mass-produced up to a point and then custom- tailored to the needs or desires of individual customers.
Mass customization
A production process in which the basic input is broken down into one or more outputs (products).
Process manufacturing
The manufacture of many identical goods at once.
Mass production
The way a good or service is created.
Production process
is a marketing and manufacturing technique that combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production. Other names for mass customization include made-to-order or built-to-order.
Mass customization
process of delivering market goods and services that are modified to satisfy a specific customer’s needs.
Mass customization
allows a customer to design certain made-to-order features of a product while still keeping costs closer to that of mass-produced products. In some cases, the components of the product are modular. This flexibility allows the client to mix and match options to create a semi-custom final product.
Mass customization
Its advantages:
Labor costs are usually lower.
Materials can be purchased in large quantities, so they are often cheaper.
Goods are produced in large number, lowering unit costs.
Mass production
It’s Disadvantages:
Machinery is very expensive to buy, so production lines are very expensive to set up.
Workers are not very motivated, since their work is very repetitive.
Production lines are not very flexible and are difficult to change.
Production processes are at risk if any one part of the line breaks. The entire production process will have to stop, pending repair which causes expensive delays.
Maintenance costs are very high.
Mass production
manufacturing many identical goods at once, was a product of the Industrial Revolution. Henry Ford’s Model-T automobile is a good example of early mass production. Each car turned out by Ford’s factory was identical, right down to its color. If you wanted a car in any color except black, you were out of luck.
Mass production
goods are produced using mass-production techniques, but only up to a point. At that point, the product or service is custom-tailored to the needs or desires of individual customers.
Mass customization
For example, American Leather, a Dallas-based furniture manufacturer, uses mass customization to produce couches and chairs to customer specifications within 30 days. The basic frames in the furniture are the same, but automated cutting machinery precuts the color and type of leather ordered by each customer. Using mass-production techniques, they are then added to each frame.
Mass customization
is the opposite of mass production. In customization, the firm produces goods or services one at a time according to the specific needs or wants of individual customers. Unlike mass customization, each product or service produced is unique.
Customization
For example, a print shop may handle a variety of projects, including newsletters, brochures, stationery, and reports. Each print job varies in quantity, type of printing process, binding, color of ink, and type of paper. A manufacturing firm that produces goods in response to customer orders is called a job shop.
Customization
Highly uniform products or services Many products made sequentially
Mass production
Uniform standardized production to a point, then unique features added to each product
Mass customization
Each product or service produced according to individual customer requirements
Customization
Examples: Breakfast cereals, soft drinks, and computer keyboards
Mass production
Examples: Dell Computers, tract homes, and Taylor Made golf clubs
Mass customization
Examples: Custom homes, legal services, and haircuts
Customization
Doctors, for instance, must consider the illnesses and circumstances of each individual patient before developing a customized treatment plan. Real estate agents may develop a customized service plan for each customer based on the type of house the person is selling or wants to buy.
Customization
production involves converting inputs (natural resources, raw materials, human resources, capital) into outputs(products or services). In a manufacturing company, the inputs, the production process, and the final outputs are usually obvious. Harley-Davidson, for instance, converts steel, rubber, paint, and other inputs into motorcycles. But the production process in a service company involves a less obvious conversion. For example, a hospital converts the knowledge and skills of its medical personnel, along with equipment and supplies from a variety of sources, into health care services for patients.
Converting Inputs to Outputs
There are two basic processes for converting inputs into outputs.
1) In process manufacturing, the basic inputs (natural resources, raw materials) are broken down into one or more outputs (products). For instance, bauxite (the input) is processed to extract aluminum (the output)
2) The assembly process is just the opposite. The basic inputs, like natural resources, raw materials, or human resources, are either combined to create the output or transformed into the output. An airplane, for example, is created by assembling thousands of parts, which are its raw material inputs. Steel manufacturers use heat to transform iron and other materials into steel. In services, customers may play a role in the transformation process. For example, a tax preparation service combines the knowledge of the tax preparer with the client’s information about personal finances in order to complete the tax return.
the basic inputs (natural resources, raw materials) are broken down into one or more outputs (products). For instance, bauxite (the input) is processed to extract aluminum (the output).
Process manufacturing
