Methods Of Production


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Methods Of Production

  1. 1. Methods of Production By Greg Osprey and Daniel Gormley
  2. 2. Different methods of production <ul><li>There are 4 methods of production, they are: </li></ul><ul><li>Just in time Production or JIT </li></ul><ul><li>Job Production </li></ul><ul><li>Batch Production </li></ul><ul><li>Flow Production </li></ul>
  3. 3. Just in time production <ul><li>Just-in-time (JIT) production is sometimes called lean production. </li></ul><ul><li>It is a Japanese philosophy; producing exactly the amount you require at exactly the time your customers require it. </li></ul><ul><li>Stock arrives just as it is needed for an order meaning there is essentially no stock held. </li></ul>
  4. 4. Advantages of JIT <ul><li>The key benefit offered by JIT is the increase it can generate in production efficiency. </li></ul><ul><li>This is because waste of time, raw materials and other resources are eliminated. </li></ul><ul><li>Businesses also save great expense as traditional expansive buildings are not needed to hold stock. </li></ul>
  5. 5. Disadvantages of JIT <ul><li>Introducing this type of production to a business can be difficult and expensive to introduce as it requires a complete overhaul. </li></ul><ul><li>JIT opens businesses to a number of risks, especially those associated with supply. Having no stock to fall back on means only a minor disruption in supplies can cease all production at short notice. </li></ul>
  6. 6. Examples of JIT <ul><li>A prime example of this type of production is Toyota Motor Corporation </li></ul><ul><li>The factory could implement JIT which would make it more flexible and reduce the overhead costs. </li></ul>
  7. 7. Job Production <ul><li>With Job Production, the complete task is handled by a single worker or group of workers. </li></ul><ul><li>Although this is most commonly used for small scale products, more complex technological products are also made this way. </li></ul>
  8. 8. Advantages of Job production <ul><li>Work is usually of a high quality </li></ul><ul><li>A high level of customisation is possible; meeting the exact requirements of customers. </li></ul><ul><li>Workers can be easily motivated due to the skilled nature of the work they are doing. </li></ul>
  9. 9. Disadvantages of Job Production <ul><li>This method of production is of much higher cost to producers. </li></ul><ul><li>Specialist labour is required (difficult to find and expensive). </li></ul><ul><li>Slower method compared to mass and batch. </li></ul>
  10. 10. Examples of Job Production <ul><li>Linn systems a Glasgow based company who produce very high quality hi-fi and other audio systems using job production. </li></ul><ul><li>Chefs in restaurants use job productions to make meals for customers. </li></ul>
  11. 11. Batch Production <ul><li>Batch methods require that a group of items move through the production process together, a stage at a time. </li></ul><ul><li>This is often used as a business grows and production volume increases. </li></ul>
  12. 12. Advantages of Batch Production <ul><li>It is cheaper to produce a number of each item in one go. </li></ul><ul><li>Workers become more expert at their skills, in turn increasing productivity. </li></ul><ul><li>It is much faster to produce a lot of goods with this method </li></ul>
  13. 13. Disadvantages of Batch Production <ul><li>It requires very careful planning to decide what batch will be produced when. </li></ul><ul><li>Over production is common causing a loss of money. </li></ul><ul><li>This method often requires a lot of mechanisation resulting in redundancies of workers. </li></ul>
  14. 14. Examples of Batch Production <ul><li>The most common example of this method is in a bakery e.g. dough is prepared split into a batch on a baking tray and baked to make a batch of loaves. </li></ul><ul><li>Chemical companies also produce pills in batches. </li></ul>
  15. 15. Flow Production <ul><li>This is where production takes place as a continuous process. </li></ul><ul><li>The product flows from one process to the next </li></ul><ul><li>This is usually used when the product is standardised. </li></ul>
  16. 16. Advantages of Flow Production <ul><li>This method is capital intensive therefore a high number of products roll off the assembly line at a very low cost. </li></ul><ul><li>Production can continue at night and over weekends </li></ul><ul><li>Firms can benefit from economies of scale, lowering the cost of per unit of production. </li></ul>
  17. 17. Disadvantages of Flow Production <ul><li>The main disadvantage is that it is very difficult to alter the process. </li></ul><ul><li>If trends change or customers want specific properties it takes great cost and time to achieve. </li></ul>
  18. 18. Examples of Flow Production <ul><li>BP use flow production in its oil refinery plants. </li></ul><ul><li>The production line of BMW uses a more flexible version of flow production. </li></ul>
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