Operations Planning: Production Methods

Operations Planning: Production Methods

• Intro: There are several ways in which goods and • Benefits of Job Production:
services are produced. These are classified as: • Motivating for worker as they produce
whole product and take pride in it
• Job Production
• Batch Production
• Can create a USP
• Flow Production
• Mass Customisation
• Usually highly specialized products so
• TASK 15 MIN’S: Research the following high value is added = high price
methods of production:
• Limitations of Job Production:
• RED Operations
Planning: •
Production Methods
Can be expensive
• Job production definition:
• ’Producing one off items specially designed for • Time consuming
the customer’
• Wide range of tools and
• One item at a time is produced
equipment will be needed as
• Popular with small businesses and tends to be each job is different
labour intensive

• Examples of where job production occurs:

• Jewelry
• Made to measure suits
• High end cars
 Operations Planning: Production Methods

• RED • Benefits of Batch Production:

• Some economies of scale
• Batch production definition:
• ‘Producing a limited number of identical
• Faster production
products.’

• Products within the batch go through the whole • Flexibility with design of each batch
production process together.
• Good for seasonal orders
• The whole batch will not pass through to the
next stage of production. until each
individual product in the batch has
Operations • Limitations of Batch Production:
passed through the current stage of Planning:
production. Production Methods
• Have to re-configure the
production system with each
• Examples of where batch production occurs: new design of a batch
• Baking • High level of stocks at each
• Clothing
stage of the production process
• Computer chips
• Computer software
• Electrical goods
• Flat pack furniture
• Newspapers
• Magazines
 Operations Planning: Production Methods

• ORANGE • Benefits of Flow Production:

• Flow production definition: • Low unit costs

• ’Producing items in a continuingly moving • Low labour costs

process’
• Easier resource planning
• Individual products move from one stage of
production process to the next as soon as it is
ready. • Economies of scale

• You don’t have to wait for any of the

Operations
• Consistency in quality and design,
other products to be ready before you Planning: reducing waste
move on. Production Methods
• Limitations of Flow Production:

• Examples of where Flow production occurs: • Repetitive and demotivating for

workers
• Coca Cola production plant
• Car plants • Inflexible as production process is
• Any high volume/high demand product set up for consistency not allowing
for any special custom design
orders

• Expensive to set up
 Operations Planning: Production Methods

• ORANGE • Benefits of Mass Customisation :

• Mass Customisation definition: • Reduced alienating effects of mass

customization and opens up to a wider
• The use of flexible computer aided production market.
systems to produce items to meet individual
customers requirements at mass production
• Reduces repetitiveness of mass production
cost levels
for workers
• Combines latest technology with multiskilled
labour to make a range of varied products • Combines low unit costs with flexibility
Operations
Planning: • Limitations of Mass Customisation
Production Methods :
• Examples of where Mass Customisation occurs:

• Computers
• Expensive product re-design
• Car models. For example, added extras. maybe needed to allow for
• Clothing. For example, Nike, Levi variety

• All of the above use the same basic model parts that • Expensive flexible capital
can be mass produced but with some customised equipment required
tweeks.
 Operations Planning: Production Methods
GREEN
 Operations Planning: Production Methods

• TASK 10 MIN’S: Working within your table • Problems with switching from Job to Batch
groups discuss the following: production:

• Factors that will influence which method of • Cost of equipment to handle large batches
production you will choose:
• Finance required to finance stock
• Size of the market
• Small market – job production • Staff demotivation as the emphasis on their
• Large market – flow production skill and craftmanship has been diluted.
• Large market with niche areas – mass
customization
• Niche market – batch production Operations
Planning: • Problems with switching from Job
Production Methods
or Batch production to flow
• Amount of capital available
• Costly to set up some methods or pay skilled production:
workers
• Cost of capital equipment
• Availability of resources
• Some resources might not be available like • Staff training to become more
skilled workers. This may mean you have to flexible and skilled – also help
adapt to the resources available
with motivation

• Having to accurately estimate

future demand so that supply
matches it.