8/19/2019 10. Methods of Production http://slidepdf.com/reader/full/10-methods-of-production 1/11 13-10-20 Production What are we going to discuss • Types of production methods • Production techniques • Control • Stock • Quality Production Department • Effective and efficient creation of goods and services • Maintaining Quality Things to consider when producing goods • The cost of production • The quality required • The quantity needed • What customers want
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• It is also called one-off production , jobbing ,custom made and ,made to measure.
• Involves producing a one-off product for aspecific customer. Job production is mostoften associated with small firms (makingrailings for a specific house, building/repairinga computer for a specific customer, makingflower arrangements for a specific weddingetc.)
• Each item might have particular specification
• Normally concerned with making a high priced
product to an order which not likely to be
repeated
• Highly skilled workers are required for the job
• More of a labor intensive than capital
intensive
• Lack of economies scale• E.g. wedding dresses, hair dressers, painting
• Suitable for a wide range of nearly similar goodswhich can use the same machinery on differentsettings.
• More variety for workers resulting in more jobsatisfaction.
• Batch Production is flexible and can be used to produce batches of similar products with only asmall change to the tooling. Batches can berepeated as many times as needed with products being cheaper due to lower production costs. Italso enables a variety of styles to be made.
• It can reduce initial capital outlay because a single production line can be used to produce several products. Batch production can be useful forsmall businesses who cannot afford to runcontinuous production lines. If a retailer buys a batch of a product that does not sell, then the producer can cease production without having tosustain huge losses. Batch production is also
useful for a factory that makes seasonal items, products for which it is difficult to forecastdemand, a trial run for production, or productsthat have a high profit margin.
• Just-in-time (JIT) is a production strategy thatstrives to improve a business' return oninvestment by reducing in-process inventoryand associated carrying costs.
• Also known as Toyota Production System
• production system in which raw materials,working- progress and finished products aredelivered at the precise time they are needed.
• Producing for sale rather than stock
Advantages of JIT
• Reduced inventory
• Less finance tied up in stock – improve cash flow
• Less risk of waste
• Less space required
• “produce to order” there reduce the risk of unsolditems
• Less need for stock controller and stock personnel• increased scope for use of computerized
information system to improve integration ofdepartments and the smooth operation of theproduction system.
): Japanese term meaning‘continuous improvement’. It is a means of
improving performance by involving allemployees in the suggestion andimplementation of small changes. Thecumulative effect of these changes, often theidea of shop floor workers, is a steady rise inproductivity, a fall in the reject rate and theraising of quality. Products will be made ‘right
first time’ and to the correct specification thus
assuring the customer of the quality of theproduct.
5 main elements of Kaizen
• Teamwork
• Personal discipline
• Improved morale
• Quality circles
• Suggestions for improvement
• Benchmarking: Benchmarking is the practicewhereby a firm studies the ‘best’ production
and marketing process used by immediatecompetitors and firms from similar industries.Benchmarking involves identifying processesthat need improvement; studying how otherfirms perform these processes particularlywell; adapting and implementing thoseprocesses and monitoring the impact of thechange. This ensures that a firm constantlyand consistently ‘drives’ up quality in line with
the best in the industry.
Total Quality Management (TQM)
• System which places the responsibility for quality
in the hands of all employees.
• Developing a culture which cares about quality
through out organization in every activity
• Prevention is better than cure
• Raw material inputs are of the correct standard,that the manufacturing process is fault free and
• Production system is divided into independentteams which is called “cells”
• Each of which is responsible for a group ofgoods or major part of the manufacturingprocess.
• Each cell will produce the significant part ofthe finished product.
• Each cell passes on their “product” to next cell
thus creating an internal chain of customers
• Teams are given developed responsibilities
and control over their area.
• This helps to improve motivation, productivity
and also improve the quality of the products.
• Cell production can lead to efficiency
improvements due to increased motivation
(team spirit and added responsibility given tocells) and workers sharing their skills and
expertise
Techniques of production
• Automation: Automation is the use of controlsystems and information technologies toreduce the need for human work in theproduction of goods and services
• Cybernetics: The basis of automation in that itis concerned with the ways in whichcomputers can replace the functions of thehuman brain. Mechanization plus cyberneticsequals automation, which has advanced torobotics.