5.2 Operations Methods Features of Production Methods
IB Business Management ? Operations Management 5.2 Operations Methods ? Features of Production Methods
IB Business Management:
MAIN FEATURES OF THE DIFFERENT PRODUCTION METHODS
Job
Batch
Flow/Mass
Mass customisation
Main feature
Single one-off items
Group
of
identical
products pass
Mass production of standardised
The use of flexible computer-aided production
through each
products
systems to
stage
produce items
together
that meet
individual
customer
requirements at
mass production
cost levels.
Essential requirements
Highly skilled workforce
Labour and
machines
must
be
Specialised, often expensive,
Well-trained and multi-skilled workforce using
flexible
to
capital
specialised
switch
to
equipment - but
manufacturing
making
can be very
equipment
batches of
efficient
controlled by IT
other designs High steady
systems,
demand for
especially IA and
standardised
big data
products
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IB Business Management ? Operations Management 5.2 Operations Methods ? Features of Production Methods
Main advantages
High steady demand for customised products
Able undertake
to
specialist
Some economies of
Low unit costs due to the
Higher profits as companies can
projects or jobs, often
with
high
value added
High levels of
worker motivation
scale Faster production with lower unit costs than job production Some flexibility in design of product in each batch
constant
working
of
machines, high
labour
productivity
and economies
of scale
JIT
stock
management
easier to apply
than with other
methods
charge a premium for their products. Improved customer satisfaction. Reduced customer churn. Streamlined production. Improved inventory management.
Main limitations
High
unit
production
costs
Time
consuming
Wide range of
tools
and
equipment
needed
High levels of stocks at each production stage Unit costs likely to be higher than with flow production
Inflexible - often
very difficult
and
time
consuming to
switch from one
type of product
to another
Expensive to set
up flow-line
machinery and
Impossible
to
build up stock
ahead of time.
Forecasting
trends/spikes in
sales more
difficult due to
wide range of
options.
Difficult to plan
each section
for surge in
needs to be
product
carefully
demand.
synchronised Affects the flow
of supply chains
with 3rd party
business partners.
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