Methods of production and efficiency

What is job production?

↳ Creating unique products (eg-tailored clothes)

What are advantages of job production?

↳ Can charge higher prices (higher quality)

↳ Motivated workers

↳ Better customer satisfaction

What are disadvantages of job production?

↳ High skilled labour needed

↳ Expensive

↳ Take a long time

What is flow production?

↳ Products are all identical as they are made in large quantitys

What are advantages of flow production?

↳ Economies of scale

↳ Reduced labour costs

↳ Standardised quality

What are disadvantages of flow production?

↳ Lack of flexibility in product design

↳ High initial costs and lots of space needed for machinery

↳ Workers demotivated

What is lean production?

↳ An approach that aims to minimize waste while maximizing productivity.

What are advantages of lean production?

↳ Reduced waste

↳ Lower production costs

↳ Improved product quality

↳ Encourages kaizan (continous improvements)

What are disadvantages of lean production?

↳ High training costs

↳ Lots of changes might have to be made

↳ Cannot benefir from economies of scale

What is just in time (JIT) production?

↳ Form of lean production that aims to reduce inventory by receiving goods only as they are needed in the production process

What are advantages of JIT production?

↳ Reduces inventory costs

↳ Increases efficiency

↳ Improved quality

What are disadvantages of JIT production?

↳ Suppliers need to be trusted

↳ Requires accurate demand forecasting

↳ Lose out of benefits of encomies of scake

What is just in case (JIC) production?

↳ Production strategy that maintains large inventories to meet demand

What are advantages of JIC production?

↳ Economies of scale

↳ Better customer satisfaction

↳ Reduced risk of stockouts

What are disadvantages of JIC production?

↳ Higher inventory costs and risk of obsolescence

↳ Potential waste

↳ Increase likelyhood of damage/spoilage