Management of Operations: Methods of Production

Management of Operations: Methods of Production

Overview of Methods of Production

  • Methods of Production refer to the different ways businesses manufacture or deliver a product or service.
  • The choice of production method can impact the efficiency, quality, and cost of the production process.

Essential Methods of Production

  • Job Production: This method involves creating bespoke, one-off items tailored to the customer’s needs.
  • Batch Production: This method involves manufacturing multiple identical products at once before moving on to a different batch.
  • Flow Production (also known as Mass Production): This method involves creating vast quantities of identical products in a continuous process.
  • Cell Production: This method involves splitting the production process into separate self-contained units or ‘cells’. Each ‘cell’ is responsible for a significant part of the finished product.

Key Factors Influencing the Choice of Production Method

  • The type and volume of output: smaller quantities usually use Job or Batch production while higher volumes utilise Flow or Cell production.
  • The complexity and variety of products: more complex, varied products often require Job production.
  • The level of customisation required: high customisation demands Job production, while standardised products can utilise Flow or Cell production.
  • Cost considerations: Job production can be more expensive, while Flow production often reduces unit costs due to economies of scale.

Pros and Cons of Different Methods of Production

  • Job Production: High customer satisfaction due to personalisation, but it has high costs and slow production time.
  • Batch Production: Greater volume than job production and allows for variety, but it has downtime between batches and may lead to stockpiling.
  • Flow Production: High volume and low costs, but little to no product variety and risk of large-scale errors.
  • Cell Production: Increases employee satisfaction with varied tasks and can accommodate some product variety, but it may compromise efficiency compared to mass production.

Challenges in Production Management

  • Balancing cost and quality: It’s crucial to maintain product quality while trying to reduce production costs.
  • Managing production volume: Production needs to align with demand to avoid overproduction or underproduction.
  • Adapting to changes in demand: Production methods may need to be adjusted in response to changes in customer demand or market trends.
  • Implementing new production methods can require significant investment and employee training.