AO2 : most appropriate production methods given a situation
production: refers to the manufacture or output of a physical good or intangible service.
4 main production methods:
job production : special or customised good or service suited to the specific requirement of an individual customer
advantages:
due to its uniqueness, the output is likely to be of outstanding quality hence a high mark-up price can be charge because of its high quality and exclusivity
skilled workers tend to be motivated by the variety and challenge of the job and its flexibility
disadvantages :
time consuming because specific requirements need to be catered for
high cost : labour cost due to the need for highly skilled and experience worker , production cost due tot he large absence of economies of scale
2. batch production: involves identical goods being made in groups ( batches ) rather than in a continuous flow
advantages :
there is some flexibility to meet a variety of demands, thereby providing some choice to customers
some economies of scale present which leads to a lower average unit cost of production compare to job production in which can be useful for small business who cannot afford to operate continuous line of productions/ demand for mass produce
disadvantages :
there is "down time" between batches as machinery might need cleaning or change prior to the manufacture of the next batch
greater needs for stocks ( inventories ), especially raw materials
3. mass production : the continuous and automated production process that uses capital intensive production methods to maximise output by minimising production time, It is associated with large production runs of standardised products.
advantages :
high returned profit: benefits from economies of scale which leads to a lower average cost per unit of production, low labour cost since it is mostly automated, hire labour for mass production is relatively cheap and easy
meet the high demand: capital intensive production means there is lily to be effect use of machinery and equipment and it is comparatively easy to expand productions to meet the increase in level of demand for the product
disadvantages :
expensive: there are likely to be very high start-up cost due to the investment in equipment, requires an efficient stock control
workers can quickly become demotivated due to the boring and repetitive nature of the tasks
4. cellular production : involves team working on certain parts of the production line. the production processes are broken down into units based around these teams working on a complete unit of output.
advantages:
as cells are responsible for quality assurance, it should lead to less wastage and a lower rejection rate which can save money
workers are involved in the production process from the beginning to the ned, so this creates a sense of ownership and achievement which also enable workers to operate in teams with greater autonomy thus boosting morale, motivation and productivity.
disadvantages :
high set-up cost for machinery and stock ordering but not used as intensively and productively as mass production
costs of recruiting and training suitable staffs to work in cells
コメント