Operationss(production) methods

• Define Job production

  Production of a one off/ unique product or service

  Specially designed by/for a customer

  One product made at a time

  Often expensive because it can take a long time to complete a unit, is labour intensive

  Requiring a higly skilled workforce
• What is operations management concerned with 


  With the use use of resources called inputs(which are the factors of production) to provide outputs in form of goods and services
• What are the 4 factors of production

  Land, Labour, Capital and Enterprise
• What is production process also know as

  Transformational process
• What is transformational process


  The way businesses change factors of production into finished goods
• How can Operation managers increase added value

  they can effectively manage efficiency of production, quality of goods and services, develop flexibility and innovation
• What does efficiency of production mean


  Keeping costs as low as possible that will help to give competitive advantage
• How do operations make a considerable contribution to adding value

  By reducing production costs through increased efficiency

  by producing quality good that meet customer expectations

  By ensuring production is flexible so that changing consumer tastes can be satisfies
• What factors play a part on the amount of value added to inputs

  the design of the product- does it allow for ecomomic manufacture with quality at an ideal price

  the efficiency of operations - increasing productivity will reduce costs per unit thus increase added value if customer prices remain unchanged

  Branding- effective branding can result in consumers paying a much higher price than input costs
• If operations managers aims to convert inputs to outputs what can they do to protect the earth from undesirable consequences such as pollution 


  They must consider how to make the best of resources, and how to minimise the impact of transformational processes on future generations
• What is batch production 


  the production of identical products in groups, these products go through the whole production process together
• advantages of batch production

  Advantages are that it allows economies of scales, It gives variety to workers’ jobs. This is because workers work on different batches that may require different

  skills. This removes boredom from work

   It allows more variety to be produced. This will increase consumer choice

   Materials can be bought in bulk. This will give bulk discounts to the business

   Unit cost is lower than Jobbing. Producing more goods reduces average cost of production

   Production can be easily changed from one product to another
• Disadvantages of batch production 


   No product will be completed before another, lead time

   Increase in costs since there is need for a very efficient control system in planning production

   Warehouse space will be needed for stock of raw materials and components.

   Machines have to be reset between production batches. This will result in delayed production and output is

  lost
• what is flow production 


  When individua products move from stage to stage of the production without waiting for any other product
• What are features of flow production 


  its capable of producing large quantities of output in short time, suitable for industries where the demand for the product is high and consistent, it must be carefully planned
• Advantages of flow production

  production

  Automation allows goods to be produced quickly

   Mass production enables the business to enjoy the economies of scale which leads to lower prices

   Automated production lines can operate 24 hours a day and 7 days a week

   Time is saved since goods move on conveyor belts

   Promotes specialisation. Repetition of the same task makes the employee more skilled

   Materials can be bought in bulk. This will give bulk discounts to
• Disadvantages of flow production


  If one machine breaks down, the whole production line will have to be halted

   It is very costly. This is because machines and automation are very expensive to buy

   Repetition of the same task can be boring to the worker

   It is not flexible. Once production lines are set it is difficult to switch to other methods

   High warehousing costs since the mass produced goods must be stored before delivery to consumers

   Use of machines puts people out of their jobs

   Only suitable for products with a large market and high demand
• What is mass customisation


  It’s a flexible mass production system enabling customers to specify what features of a product/ service they

  want. This process combines the latest technology with multi-skilled labour force to use production lines to

  make a range of varied products.
• Advantages of mass customisation


  advanced and flexible capital equipment

  skilled and well trained workers to operate machinery

  product designs that may have many standardised parts but some interchange ones

  suppliers able to supply variations on parts and components
• Disadvantages of mass customisation 


  It is very expensive to set up. Computers, robots and machine are very expensive

   Technology will become out-dated. Technology keeps on changing

   Employees may need to be retrained to use the new technology. This adds to business costs

   Increased unemployment as workers will be replaced with machines
• The problems of changing from one method to another

  Setting up an operation method takes time, planning and capital. To change from one method to another would

  mean taking apart the machinery and equipment and redesigning the whole production system. It would also mean

  that it might be necessary to redesign the product. It would be extremely difficult and very expensive to produce

  some batch produced products by flow production