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Chapter 9
Long-term decisions
Deciding on a production system
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Emma Lotter
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Cards (6)
Input
->
Processed
-> Output
Continuous production
->
Mass production
&
Interrupted production
->
Batch production
Production System
Mass
production
Jobbing
production
Batch
production
Combination
production
Mass Production
Standardised
productions are produced in
large
quantities
Large
quantities can be produced in a
short
period
Stable
demand for product before hand
Machine
capacities must be kept in
sync
Highly
reliant
on
high
quality single purpose machines
Relies heavily on
auto-mation
Lowers
cost per unit
Problematic if
good
quality control is lacking
Mass
production systems can sometimes be
inflexible
Jobbing
One job is finished before a new one is started
Produced according to customer specifications
System is flexible, can be adapted to customer needs
Jobbing requires employees to have multiple skills
Multipurpose machines can be used
Stockpiling cost can be higher
Batch
Batch production
falls in between
mass
and jobbing
Large quantities of similar products are made in batches - one
batch
is
completed
before the next is started
This system allows flexibility (
colour
,
size
, pattern)
Easy
to
over come delays
in
machine breaks
other functions can
continue
Production cost
per
unity
is higher than mass production
Combination Production
There is a shift towards this system
Mass, jobbing and/or
batch
are used in
combination
Technology allows for this = value to
supply chain
=
competitive
advantage