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Operation Planning - Coggle Diagram
Operation Planning
Production Method
Batch production
producing a limited number of identical products – each item in the batch passes through one stage of production before passing on to the next stage.
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Mass customisation
the use of flexible computeraided production systems to produce items to meet individual customers’ requirements at mass-production cost levels.
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Operational flexibility
the ability of a business to vary both the level of production and the range of products following changes in customer demand.
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have a flexible and adaptable labour force – using temporary, part-time contracts reduces fixed salary costs but may reduce worker motivation
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Scale of operation
: the maximum output that can be achieved using the available inputs (resources) – this scale can only be increased in the long term by employing more of all inputs.
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capital available – if this is limited, growth will be less likely
size of the market the firm operates in – a very small market will not require large-scale production
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scope for scale economies – if these are substantial, as in water supply, each business is likely to operate on a large scale.
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