3.1 Production process

Methods of production
1. Flow production
  1. When a product moves continuesly from one stage of production to another like Coca-Cola
  2. Benefits
    1. -Don't need employees as it is mostly automated -Can work all night and day
  3. Disadvantages
    1. -May not be high quality -Expensive to set up
2. Just-in-time production
  1. Reduces costs and spending and improves competitiveness.
  2. Business holds no stock and relies on deliveries of raw materials and components when needed so they do not pay for warehouses
  3. Benefits
    1. -Reduces cost and spending. -Reduced warehouse costs balanced against the cost more frequent deliveries. -Can move between products easily.
  4. Disadvantages
    1. -Production can be put back if there is an issue with delivery. -Lost purchasing economies of scale from bulk buying discounts. -Large orders can delay delivery. -Staff must still be paid even if not producing
  5. Cars
3. Job production
  1. Personalized products like hairdressers for specific customers. Custom work like a one-off product
  2. Benefits
    1. -High quality work -Flexibility to meet customer needs (like making a kitchen) -Motivated workers with skill
  3. Disadvantages
    1. -Expensive -Slow -Specialist labour
4. Lean production
  1. An approach to production to minimize waste. Efficiency can be measured by cost per unit. Lower unit cost, more efficiant
  2. Advantages
    1. Helps reduce costs
  3. Disadvantages
    1. -Faulty products must be remade -Any stock held costs money to the warehouse
5. Just-in-case production
Kaizen
1. -Means 'continuous improvement' -All employees are involved in improving how things are done -Employees in teams to review work from previous day to improve production -Small improvements adds up significant savings in time and money over time

Nächster

3.1 Production process

Beschreibung

Zusammenfassung der Ressource

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