Production Methods / Systems

Front 1

Job production

Back 1

A production method in which one unique product is produced by one person or a team. A single product is produced exactly with specific features for one Customer before moving onto the order for another customer.

Front 2

Requirements / characteristics of job production

Back 2

-well skilled labour

-flexible and adaptable labour to cope with changes in customer requirements

-multipurpose tools and equipment for different product designs

-labour intensive

-produces one unit at a time

- production may be simple ( handicraft goods) or complex (aircrafts)

Front 3

Advantages of job production

Back 3

-This market oriented approach is based only on customers orders and this will reduce the risk of business failure

-The good is Taylor to suit customer requirements so price elasticity is well and a high price can be charged that will increase value added

-The tax and the quality control procedures are integrated so that it not only becomes easier to isolate production problems but it can reduce supervisory costs

Front 4

Disadvantages of job production

Back 4

-Value is and very slow recent production takes a long time and it will take longer to recover costs

-The long production run postpone the delivery date and chemical storage cost to increase for work-in-process

-More time is spent adjusting equipment for each order with different requirements

-It’s suffers from low utilization of equipment since only a small portion maybe used at that one point in time

Front 5

Batch production

Back 5

In this method of production a number of identical or similar items are produced in a set or batch

Front 6

Requirements for batch

Back 6

- Some degree of specialized and flexible labor and capital are needed since labor and machines must be able to switch to making other batches of different designs

-The capacity of the equipment will affect the size of the batch

-capital intensive

Front 7

Advantages of batch

Back 7

- Allows for economies of scale

- There is some degree of flexibility to be able to change the design of the product to suit customer needs

-within each batch the products are standardized and this can allow for a small reduction in unit costs

-It makes costing easier since it can be allocated to specific batches.

Front 8

Disadvantages of batch

Back 8

-A problem in production will affect all product in the same back there for the entire batch may have to be reworked or discarded

-Tools and equipment will have to be adjusted to cater for a different product or a bad size this will take time and cost could increase

-Production cannot be synchronized exactly so if one activity takes a long time there will be a waiting time for the next process causing a bottleneck

Front 9

Flow / Line production

Back 9

This is large scale production of identical products (e.g car assembly, electronics, bottling )

Front 10

Requirements of flow/line

Back 10

- There must be a large and continuous demand to absorb the high rate of output

-A simplified product and production process

-Specialized tools and machinery and labor

-Efficient and continuous maintenance on equipment to avoid breakdowns

Front 11

Advantages of flow

Back 11

- Significant economies of scale so that unit costs will be low

-A fall in unit cost will allow management to reduce the price if the good is elastic then sales increase more than proportionately allowing for easy print penetration of the market in addition sales revenue increases with a decrease in the price of an elastic good

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Disadvantages

Back 12

-A breakdown in machines will cause a delay in the production process

-Since it involves a high usage rate of role material stocks and packaging management must ensure a steady supply by holding in managing stocks; this will increase costs

-Specialized machines and labor make it very difficult to change the design of the product. It results in an inflexible organization.

-It is a highly repetitious type of production that can lead to monotony

Front 13

Cell Production

Back 13

So manufacturing organize his workers into teams on the shop floor with each cell comprising of several workers who each process different skills.

Front 14

Cell

Back 14

A small scale production unit consisting of workers supplies machines and tools within the factory

Front 15

Cell characteristics

Back 15

-A product cell completes one finished good. The seller will produce,assemble, test, package and ship the product.

-A process cell will complete a variety of products to cater to multiple customers with different requirements. Example the output of the sale can be a family of similar parts like different motors to be installed in different machines

-Each team are so may be involved in only a portion of the final good and will therefore be connected to other cells in a schedule process like in slow production the cells are arranged coast to each other to allow the easy transfer of their ‘product’

Front 16

Requirements

Back 16

-All labor and capital goods are contained within the cell

-Diversified workers who can adapt to different roles and activities in the team

-Do you sell is responsible for identifying its own train and recruitment needs

Front 17

Advantages

Back 17

-Can you technology that bread to the factory into productive units will increase productivity and improve quality control

-The cell organizes It’s on the roster her workers by job rotation allowing the workers to master a range of operating skills by implementing on the job training

-Since it is a highly flexible system that will satisfy the specific requirement of consumer demand it can therefore create customer loyalty

Front 18

Disadvantages

Back 18

-Switching to self production can be very expensive as machinery and workers have to be realigned in the shop floor has had to be redesigned

-Different cells work at different speeds resulting in an imbalance in workloads among the cells

Front 19

Factors affecting the choice of production method

Back 19

-The nature of the market it’s size and frequency of purchases from customers if it is smaller than job at or batch production may be implemented. If it is large and continuous then flow production can be implemented

-Amount of finance available small firms lacks efficient finance and usually implement job or batch production

-Availability of resources large scale production requires a significant and continuous supply of inputs but job and batch need much lessb

Front 20

Factors affecting location of a business

Back 20

- retail business must be located close to their target market to attract consumers and reduce distribution costs

-retail business set up close to competitions in order to steal customers to penetrate the market

- they also set up next to competitor because infrastructure like access roads and port facilities are present for delivery of raw materials and finished goods

- locating near competitors can also allow the business to steal some experienced workers

- the cost of land influences the location of the business

-government zoning laws that determine residential, commercial,light industries and heavy industries will affect where a business is allowed to set up.

-industries involved in extracting natural resources will be forced to locate where those resources are located

-labour intensive industries that need skilled workers must be located near to an adequate supply of skilled workers

-availability and fertility of land determines locations of farms

-levels of crime