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Title: Production Methods
Description: A well laid-out explanation of the different production methods available and practiced by businesses. This topic is usually categorized in the 'operations management' section of a business course.
Description: A well laid-out explanation of the different production methods available and practiced by businesses. This topic is usually categorized in the 'operations management' section of a business course.
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Eloi Simon
Production Methods
Operations Management
Notes taken during a class guided by the Business Management Course Companion for the IB, by Loykie Lominé, Martin Muchena, and Robert A Pierce
Main methods of production
Type
Definition
Example
Job (customized) production
One-off production
Production made to a specific
order
-
Personalized wedding cake
Handmade crafts
Buildings / bridges / ships
Batch production
Production of a group of identical
products (“batch” → items in each
group go together through the
stages of production)
-
Car models with differing
features for each model
...
Identical, undifferentiated
cookies produced for a mass
market
...
This term stresses the fact that a business uses a continuous
flow of materials along an assembly line
Advantages
Disadvantages
→ Once set up, little maintenance needed
→ Business can cater l arge orders, thereby
achieving economies of scale
→ Labor costs may be low as the jobs
required are relatively unskilled and with a
fully automated process they are even
replaceable
→ Business can respond to an increase in
orders very quickly, as the process is already
set up
→ Set-up costs will be high
→ Breakdowns are costly as the whole
assembly line may have to stop
→ Business is very dependent on a steady
demand from a large segment of the market
→ System is i nflexible: if there is a sudden
change in demand, the business may be left
holding large stocks of unwanted products
→ The production process can be
demotivating for workers doing robotic
activities
Cellular Manufacturing (Cell production)
→ A form of mass production
→ Difference is that the flow of the production line is broken up into sections where different
workers are responsible for different parts of the production
→ A more recent attempt to improve mass-productions
→ Motivating for workers are they attain a higher degree of responsibility and autonomy
...
B
usiness Management: Course Companion
...
Title: Production Methods
Description: A well laid-out explanation of the different production methods available and practiced by businesses. This topic is usually categorized in the 'operations management' section of a business course.
Description: A well laid-out explanation of the different production methods available and practiced by businesses. This topic is usually categorized in the 'operations management' section of a business course.