3.1 - production processes

Production

production refers to the process of creating goods or services using labor, materials, and capital. It involves transforming raw materials or components into finished products that can be sold to consumers or other businesses.

Job production

• method of production in which a product is supplied to meet the exact requirements of a customer

Job Production - adv

not wasting resources, stand out as a business, sell for higher

Job Production - disadv

skilled employees, high cost

Flow Production

Occurs when an item moves continuously from one stage of the production process to another

Flow production adv

meet demand, time efficient, lower cost (save on labour), reduced per unit cost

Flow production disadv

tech dependent, high initial cost, lacks flexibility, low worker satisfaction

Lean production

aim to reduce the amount of wasted resources, based on assumption that a reduction in waste will equate to a reduction in cost

Just-in-Time (JIT) Production

A system where materials and products are produced only when needed, reducing storage costs and waste.

Kaizen

A Japanese business philosophy meaning "continuous improvement." It encourages employees at all levels to suggest small, regular improvements to boost efficiency and quality.

Lean production adv + disadv

(Minimizing waste & maximizing efficiency)

✅ Advantages:

• Reduces costs by cutting waste and unnecessary processes

• Improves product quality and efficiency

  Encourages continuous improvement and innovation

❌ Disadvantages:

• Requires significant training and culture change

• Can be difficult to implement in complex supply chains

• Over-reliance on efficiency may lead to worker stress

JIT adv + disadv

(Producing only when needed)

✅ Advantages:

• Reduces storage costs (less inventory sitting around)

• Minimizes waste (no overproduction)

• Improves cash flow (less money tied up in inventory)

❌ Disadvantages:

• High risk if suppliers delay shipments (can halt production)

• Difficult to handle sudden demand spikes

• Requires very efficient logistics and supplier coordination

Kaizen adv + disadv

(Continuous improvement approach)

✅ Advantages:

• Encourages employee involvement and teamwork

• Leads to small, consistent improvements over time

• Helps improve quality and efficiency

❌ Disadvantages:

• Slow process – changes happen gradually

• Requires commitment from management and employees

• May face resistance from employees who prefer traditional methods