When a product moves continuesly from one stage of
production to another like Coca-Cola
Benefits
-Don't need employees as it is mostly automated
-Can work all night and day
Disadvantages
-May not be high quality -Expensive to set up
Just-in-time production
Reduces costs and
spending and improves
competitiveness.
Business holds no stock and relies on deliveries of raw
materials and components when needed so they do not
pay for warehouses
Benefits
-Reduces cost and spending.
-Reduced warehouse costs
balanced against the cost
more frequent deliveries.
-Can move between products
easily.
Disadvantages
-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
Cars
Job production
Personalized products like hairdressers for
specific customers. Custom work like a one-off
product
Benefits
-High quality work
-Flexibility to meet
customer needs (like
making a kitchen)
-Motivated workers with
skill
Disadvantages
-Expensive
-Slow
-Specialist
labour
Lean production
An approach to production to minimize waste. Efficiency can be
measured by cost per unit. Lower unit cost, more efficiant
Advantages
Helps reduce costs
Disadvantages
-Faulty products must be remade
-Any stock held costs money to
the warehouse
Just-in-case production
Kaizen
-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