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Lec 4: Managing production - Coggle Diagram
Lec 4: Managing production
mass production= scientific management and assembly line
Features
Moving assembly lines: Linear, repetitive tasks.
Division of labor: Vertical and horizontal.
Emphasis on speed and efficiency.
2 conditions to mass production:
time- motion studies
conveyer and assembly line
Benefits
Economies of scale: unit costs decline as volume
increases.
Ease of repair – car repaired and maintained by user;
Limited training needed, interchangeable workers
Growth in demand fed by falling prices
Criticism
Offered a good wage, but only to ensure a steady stream of new workers for his growing assembly line system.
Turnover was extremely high.
Considered workers in the same light as production machines or the components that made up his cars.
Lean production
Feature
Kaizen: continuos improvement
Kanban: Just in time
Reduction of waste
Minimizing inventory
Maximizing production flow and designing for rapid production changeover
Respect for workers or empowering workers (Humans, most reliable and valuable resource to any company)
Benefits
avoid risk of demand
flexible production techniques
saving finace, reduce cost
low or zero inventories
total quality mangement
team of multi- skilled worker
View of employess as a capital investment rather than a variable labor cost