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5.2 Operation Management (Job / customised production (producing a one-off…
5.2 Operation Management
Job / customised production
producing a one-off item specially designed for each customer.
requires highly skilled workforce
main limitations
time consuming as customers need to wait until the product is completed
wide range of tools and equipment needed
high unit production costs - much production will be labour-intensive
main applications
works of art, special fashion dresses, one-off furniture designs
main advantages
able to undertake specialists projects or jobs (often with high value added
workers have high level of motivation as skills are being fully employed
Cell (cellular) manufacturing
team-based production of components or complete products
team members and equipment needed are placed close to each other and requires multi-skilled workers
main limitations
different 'cells' may work at different speeds
business may need to highly invest in new machinery and equipment
output may not as high as traditional 'flow' production system
employee training costs could be high
main applications
components or sub-assemblies that are used in a variety different applications which might require slightly different specifications
main advantages
high motivation among workers
very low handling costs and can save more time as workers and equipment are placed close to each other
production system is more flexible with multi-skilled workers
Process production
continuous input of raw materials and other resources to produce continuous output
design of capital equipment must allow for continuous working (often large capital injections needed to finance operations
main limitations
difficult and disruptive if production process has to be stopped
little opportunity to make different versions of product
heavy investment for process design and production equipment
main applications
standardised products in high demand - often produced in large bulks such as chemicals, and oil-based products
main advantages
processes can normally be automated which reduces unit costs
large quantities can be produced
ideal for products which have to be of a consistent quality
Flow/mass production
mass production of standardised products
requires specialised, often expensive capital equipment and highly steady demand for standardised products
main limitations
expensive to set up flow-line machinery
inflexible - often very difficult and time consuming
main applications
mass-market cars, computers, TVs
main advantages
low unit costs due to constant working of machines, high labour productivity and economies of scale
Batch production
group of identical products pass through each stage together
requires labour and machines and must be flexible to switch to making batches of other designs
main limitations
high levels of stocks at each production stage
unit costs likely to be higher than with flow production
main applications
products with high seasonal demand (ice creams) or obtainable seasonally ( freezing of vegetables
main advantages
faster production with lower unit costs tan job production
some flexibility in design of product in each batch
some economies of scale
Mass customisation
flow production of products with many standardised components but customised differences too
requires many common components, flexible and multi-skilled workers and flexible equipment (computer)
main limitations
expensive product redesign may be needed to allow key components to be switched to allow variety
expensive flexible capital equipment needed
main applications
products aimed at niche market segments - often at higher prices than standardised products such as special sport shoes and unique paint finishes for cars
main advantages
combines low unit costs with flexibility to meet customers' individual requirement