1 / 18

Production Methods

Production Methods. IB Business and Management. Production Methods. Job Production. Built to order One-time Very flexible Highly skilled staff Route based on each product specification Production management more complicated Better moral and job satisfaction Expensive production process

hakan
Download Presentation

Production Methods

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Production Methods IB Business and Management

  2. Production Methods

  3. Job Production • Built to order • One-time • Very flexible • Highly skilled staff • Route based on each product specification • Production management more complicated • Better moral and job satisfaction • Expensive production process • Few economies of scale • Time consuming

  4. Batch Production • Group of product completes stage of production before moving to next • More items are produced at any one time • Specialization • Economies of scale • Less flexible than job production • Switching product takes time • Higher stock levels • Lower job satisfaction than job

  5. Flow (Mass/Line) Production • Each item moves from stage to stage • Standardized product • Capital intensive (machinery and technology) • High volumes of production • Lower cost per unit • Specialization => higher quality • Efficient but inflexible • Work is repetitive and boring • Vulnerable to stoppages

  6. Production Decisions

  7. Impact of Technology • Technology has enabled the evolution of the production process; from job to batch to flow. • With the introduction of computers and robots there have been even more improvements to the production process. • Production has become faster, more efficient, and better quality. • Mass Customization – mass producing products with slight variations to each product .

  8. Exercise Hoang, page 619 Question 5.1.2 All parts (a,b,c,d,e)

  9. Cell Production • Flexible Manufacturing Cells (FMC) • a series of product-focused work groups • dedicated to manufacturing those productsrequiring similar operations • operates like a series of plants-within-a-plant, each starting with raw materials and ending with finished product, with all operations being performed in the cell

  10. Cell Production • Reduce manufacturing lead times, • Improve product cost, quality and delivery • Create an atmosphere of employee involvement and continuous improvement • Output is lower • Capital intensive • Possible conflicts within and between cells

  11. Impacts

  12. Production Decisions • Product • Target Market • Size of Firm • Factors Available • Land • Labour • Capital

  13. Labour vs. Capital Intensive • Labour Intensive • Job Production & Tertiary Sector • Personalized or Customized • Lower fixed costs • Higher average costs • Capital Intensive • Batch & Mass Production • Standardized product • Higher fixed costs • Lower average costs • Depends on • Relative cost of labour & capital • Size of the market • Corporate objectives

  14. Combining Methods • The most effective method will sometimes be a combination • All factors will need to be considered when making the decision

  15. Changing Methods • Internal and external factors can push a company to change methods • Growth • Market Changes • Merger/Take over • Management Preference

  16. Changing Methods • Marketing Impacts • Quality • Flexibility • HRM Impacts • Skilled vs Unskilled • Motivation • Finance Impacts • Capital costs • Operational costs

  17. Activity • How everyday things are made • http://manufacturing.stanford.edu/hetm.html • Choose one of the topics: • Transportation • Candy • Packing it up • What you wear • Play Time • Material • And view all the items for the topic • Make note of the different methods of production and be prepared to discuss in class

  18. Learning Outcomes • Job, batch, line and flow, and mass production • Cell production, teamwork and productivity implications • Describe and compare the features and applications of each method. • Analyse the implications for marketing, human resource management and finance that arise from changing the production system. • Analyse the most appropriate method of production for a given situation. • Understand the need for organizations to use more than one method of production.

More Related