Production methods.docx

4 Pages

Management Information Systems
Course Code
MGIS 317
Ronald Schlenker

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Production methods Job Batch Flow Mass customization Main feature Single one off Group of identical products Mass production of Flow production of products items pass through each stage standardized with many standardised together products components but customized differences too Essential Highly skilled Labour and machines must Specialized often Many common components requirements workforce be flexible to switch to expensive, capital making batches of other equipment- but can designs be very efficient Flexible and multi-skilled workers Highly steady demand for stander Flexible equipment products Main Able to Some economies of scale Low unit costs due to Combines low unit costs with advantages undertake constant working of flexibility to meet customers specialist machines, high individual requirements projects or labour productivity Faster production with jobs often lower unit costs than job and economies of with high production scale added value Some flexibility in design of product in each batch Main High unit High levels of stocks at Inflexible- often Expensive product redesign disadvantages costs each stage of production difficult and time may be needed to allow key consuming components Time consuming Wide range of tools needed Choose each depending on: Size of the market - If the market is very small, then job production is likely to be used. - Flow production is most efficiently adopted when the market for similar or identical products - Mass production is used in this way, then mass marketing methods will also have to be adopted to sell the high output levels that can be manufactured The amount of capital available - A purpose built flow production line is difficult and expensive to construct. Small firms are unlikely to be able to afford this type of investment and are more likely to use job or batch production Availability of other resources -large scale flow production often requires a supply of relatively unskilled workers and a large, flat land area. Market demand exist for products adapted to specific customer requirements - If firms want the cost advantages of high volume combines with the ability to make slightly different products. Problems of changing production methods Job to batch: - cost equipment needed to handle large numbers in each batch - additional working capital needed to finance stocks and work in progress - staff demotivation- less emphasi
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