5.2 Operation methods Flashcards

1
Q

how is production divided

A

is generally divided in different methods that allow for an understanding of how the manufacturing process is to take shape.
For example, building a large tanker that will ferry goods across the ocean involves a production method different from the production of bread or biscuits.

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2
Q

Different production methods may also be combined in various industries; however, the primary goal in each production method is

A

is the maximization of efficiency without the sacrifice of quality

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3
Q

job production

A
  • normally associated with a highest end of the market where the emphasis is in quality and originality so the producer can charge high prices
  • entails the production of one product at a time with a “market-orientated” approach and the customer ending how they want to be - also called “customization”
  • is generally labour intensive, with a workforce that is high skilled and also generally with machinery that is specialised
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4
Q

what are the advantages of job production

A
  • Very motivational for workers as it is not monotonous but varied and results in pride of accomplishment.
  • Requires less management coordination and control
  • Clients get exactly what they want
  • Due to the labour-intensive nature of focus the quality is higher
  • The job can be modified to meet the needs and tastes of the consumer
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5
Q

what are the disadvantages of job production

A
  • The overall costs of manufacturing is highest when compared to the other production methods, this due to the highly trained labour and special equipment
  • Due to the specialized use of equipment, these may not be convertible to any other use and therefore serve a limited purpose
  • The demand for special jobs will require longer production time and therefore delay income
  • There is a risk that the product might fail because of the client’s lack of knowledge.
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6
Q

batch production

A
  • normally associated with the middle of the market where the emphasis is in quality and affordability
  • uses a different degree of factors of production when compared to job production
  • with batch production a greater number of products are produced (instead of one at a time)
  • there are similarities in the products being produced although the number is limited to a set amount
  • as compared to the job production method, a larger number of the products can be manufactured at a lower cost of production ; workers are not as engaged, and machines are more active so therefore this process is more capital intensive
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7
Q

examples of job production

A

range from aircraft manufacturers such as Boeing and Airbus to a wedding dress and a wedding cake, and a tailored suit
moreover a private tutor instead of a class of 20 students could also be considered an example

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8
Q

examples of batch production

A

production of a particular stye of car seat or baked goods - when the batches are produced, they can be tailored to meet the needs and demands of a group of consumers with similar tastes and wants

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9
Q

advantages of batch production

A
  • each batch can be designed to meet consumers wishes, therefore some degree of choice in this production method as the alteration of machines allows for this flexibility
  • likelihood that workers will work in teams and produce varied products ; the cost of employees will be lower as they do not need to be highly skilled
  • the costs associate with the machines will be lower because produced goods will be similar and hence standardized
  • batch production is more beneficial than job production since 20 or 30 units can be replicated as opposed to one item at a time as we see in job production
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10
Q

disadvantages of batch production

A
  • lack of motivation in repetitive batch output ; workers will not have satisfaction of being part of entire process and thereby will not feel the sense of accomplishment seen in job production
  • in the event the batch. order request is of a low number, the related manufacturing costs of having to alter the equipment to meet the new production requests may outweigh the benefits of each batch production
  • batch sizes are dependant on machine capacity and the Labour allocated to them, which might not be enough
  • costs associated with adjusting and servicing the production machinery are not only time related, but labour related
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11
Q

mass production

A

refers to production of a high volume or standardised products, typically using a continuous flow of raw materials along the assembly line - it is all about quantity
it is a continuous process that is very capital intensive and hence a high volume of products emerge as a result
large inventories of raw materials are constantly needed to feed manufacturing

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12
Q

examples of mass production

A

bottling industry, newspaper companies, sweets/confectionaries industry
–> process is repetitive; fast paced and normally requires the use of computers

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13
Q

advantages of mass production

A
  • economies of scale; because of the high volume of units produced the per unit cost drops dramatically
  • Labour is restricted to machine specialists and supervisors; hence labour costs are significantly reduced
  • production can continue uninterrupted at all times of the day and all dates of the year in order to meet market-based demands
  • once its set up the system needs little maintenance
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14
Q

disadvantages of mass production

A
  • set-up and installing machines costs will be high
  • the repetitive nature of mass production will severely affect motivation and morale will suffer
  • due to mass production of units, quality control will suffer
  • if the machines breakdown, costs of repair can be very high
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15
Q

examine tables

A
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16
Q

mass customization

A

is an operation approach that integrates the advantages of mass production, such as cost efficiencies through economies of scale, with the tailored aspects of job or customised production

17
Q

what does mass customization involve

A

the extensive mass production of goods while maintaining the adaptability to tailor the product to accomodate the requirements of individual customers, incorporating “customised/tailored” features to meet their specific needs or preferences

18
Q

examples of mass customisation

A

nutella producing personalised jars
car manufacturers offering customers additional options to the “base car”

19
Q

advantages of mass customization

A
  • offers greater choice for customers and a higher degree of customer satisfaction and therefore can create competitive advantages for the business
  • flexibility enables for more customers to have their individual needs and preferences met, without the high costs associated with job production
  • enables the business to enjoy higher profit margins due to the premium prices charged for mass customised products
20
Q

disadvantages of mass customization

A
  • Mass customization relies on creating more options (or additional extras) to attract customers, but such investments can be highly expensive for the business.
  • It requires a greater need for effective stock control (inventory management), which can be both time consuming and costly for the business.
  • It can be challenging to forecast sales and trends due to the wide range of options made available to customers.
21
Q

factors that affect the decision of which method to use: target market

A

when a firm produces high volumes of a low-cost product for a large market of people with low income

22
Q

factors that affect the decision of which method to use: the state of existing technology

A

since this can limit how flexible the production can be.

23
Q

factors that affect the decision of which method to use: the availability of resources

A

fixed capital, working capital, and human capital

24
Q

factors that affect the decision of which method to use: government regulations

A

when firms might have to meet certain target of recycling, for example