Revision Notes

Production

  1. Different types: job; batch; mass; lean; cell; JIT.
  2. Job production: producing a particular output to meet specific demands of one customer. Thus it is a 'one-off'. Example: painting a car with stripes for Elton John and all other cars are plain Likely to be high priced.
  3. Batch production: producing a group of units. Example: painting 20 cars and only when that is finished, moving on to the next 20.
  4. Mass production: standardised products. High volume. Average costs will be low (economies of scale). Division of labour. Probably automated assembly lines.
  5. Mass production may lead to waste, surplus and a demotivated staff owing to the routine nature of the task. Job production will be more customer oriented but productivity will be lower.
  6. Lean production aims to reduce wastage and improve productivity. Emphasises high quality and by involving employees (see Mayo) improves morale.
  7. Cell production: the whole production line of, say, 1000 units may be divided into 100 cells each producing 10 units, or at least a particular section of the product. This encourages teamwork and staff can see the end product of their work.
  8. Kaizen: continuous improvement. Workers take responsibility for quality. Quality circles are set up where representatives from departments meet regularly to discuss quality problems. This builds teamwork. This motivates workers through teamwork and the delegation of authority.
  9. Just-in-time. Low stock. Supplier delivers 'just in time' with high penalties if he/she is late. Stockholding costs are cut. Easier to change product design. If the supplier is late there may be a stock-out situation and market share/profits may be lost. The same if there is a sudden increase in demand.
  10. Trade-off between flexibility and market orientation versus long production runs, economies of scale and falling average costs. Being able to respond to market changes means mobility of labour, multi skills and adaptability of machinery BUT market share should increase. Long production runs means less flexibility but if the market is not changing, the low cost approach should increase market share.
©2005 Oxford School of Learning Ltd. 66 Sunderland Ave, Oxford OX2 8DU. Tel: 01865 512428
Company Registered in England No. 02031252
email us | Our Privacy Policy | Accessibility Policy |
Approved by the ATW
Web Design by Bat Design