Planning and Projection Stages

• advantages of line production are that they can output high volumes of the same product very quickly and economies of scale decrease the unit the unit cost
• disadvantages of line production are

  • initial set up costs
  • can be boring for employs to operate
  • inflexibility - products have to be or standardised - cannot be tailored to individual taste
• advantages of cell production are;

  • employ tasks are changed throughout the day, helping to maintain motivation
  • flexibility allows for a larger product range to be manufactured
  • Can react quickly to changes in the market with minimal cost
• disadvantages of cell production are;

  • high initial set up cost
  • not suitable for large volume
• JIT advantages;

  • reduced storage space for stock
  • inventory cost reduced because large volumes of materials are not kept in stock
• disadvantages of JIT production are;

  • required accurate projection of production demand - costly consequence if you get wrong
  • required good delivery networks between suppliers and the factory
  • relies on a computerised stock control system
  • risks of suppliers defaulting and not being able to meet the terms of the contract