Concise Notes on Production Methods

Production Methods

Overview
  • Four main types of production methods:
    1. Job (customized) production
    2. Batch production
    3. Mass/flow/process production
    4. Cell production
Job Production
  • Definition: Tailored production to meet individual needs.
  • Advantages: High customization, employee satisfaction due to variety in tasks.
  • Disadvantages: High costs per unit, longer production times, less efficiency.
Batch Production
  • Definition: Producing a set of identical products; work on each batch is completed before moving to the next.
  • Advantages: Reduced costs per unit compared to job production, flexibility to change products.
  • Disadvantages: Downtime between batches, potential for excess inventory.
Mass/Flow/Process Production
  • Definition: Production of large quantities of standardized products.
  • Advantages: Lower costs per unit, high efficiency, constant production.
  • Disadvantages: Less flexibility, higher set-up costs, potential job losses due to automation.
Cell Production
  • Definition: Production using specialized teams (cells) that carry out complete units of work.
  • Advantages: Enhanced motivation, teamwork, and efficiency. Often integrated with lean production methods like just-in-time.
  • Disadvantages: Requires careful planning and can lead to complexities in operations.
Comparison of Production Methods
  • Labor-Intensive vs. Capital-Intensive:
    • Job and batch methods are more labor-intensive, while mass production is capital-intensive.
  • Costs per Unit: Job production has the highest costs per unit; mass production has the lowest.
  • Setup Time: Job production takes the longest time to set up; mass production has short setup times.
Factors Influencing Production Method Choice
  • New management approaches, mergers, growth, and technological advancements can impact production method decisions.
  • Changes in production can directly affect various business functions, including marketing and finance.
Learning Checkpoints
  1. Difference between Batch and Cell Production:
    • Batch Production: Uses capital-intensive technologies to produce set batches; efficiency can suffer during transitions.
    • Cell Production: Teams focus on complete tasks leading to greater motivation and responsibility; combines with lean methods for greater efficiency.