Operations Methods

Operations Methods Overview

  • Operations methods are the procedures and techniques used by businesses to carry out their operational activities.
  • These procedures help an organisation to perform tasks such as production, delivery, and customer service effectively and efficiently.
  • The choice of operations methods has a significant impact on a firm’s ability to achieve its operational objectives.

Job Production

  • Involves producing a single, unique product from start to finish.
  • This method is characterised by high levels of customisation, which can lead to high customer satisfaction.
  • However, due to its labour-intensive nature, job production can be costly and time-consuming.

Batch Production

  • This involves producing a limited number of identical products at the same time.
  • Offers a balance between customisation and mass production.
  • Batch production allows for economy of scale to some extent but requires careful management of resources and inventory.

Flow Production

  • Also known as mass production, this method involves continuous production of a high volume of identical products.
  • It’s characterised by high levels of automation, leading to significant economies of scale, lower unit costs and quick production times.
  • However, the lack of flexibility and high setup costs can make flow production less suitable for small businesses.

Just-in-Time Production

  • Involves producing goods only when they are needed, reducing the need for stockholding.
  • The main advantage is the significant reduction in storage and holding costs.
  • However, it requires excellent coordination with suppliers and efficient production processes to avoid disruption due to stockouts.

Automation

  • Refers to the use of machines or technology to perform tasks that were previously performed by humans.
  • Automation can result in significant efficiency gains, reduction in errors and lower labour costs.
  • However, high setup costs, along with potential job losses, are major considerations when deciding on automation.

Lean Production

  • Aims to eliminate waste while ensuring high quality.
  • It seeks to optimise operations by refining processes and continuous improvement.
  • Lean production can lead to cost inefficiency and increased productivity, but it requires a strong organizational culture and staff commitment.

Understanding these operations methods, their advantages and their limitations can help businesses decide on the most suitable approach to achieve their operational goals. It’s all about finding the balance between cost-effectiveness, quality, flexibility and speed of delivery.