5.2 Operations methods

Question 1

Job production

Answer 1

Production of a special “one off” product made to a specific order (for one individual customer

Question 2

Advantages of job production

Answer 2

1. mark-up is likely to be high
2. clients get exactly what they want
3. motivates skilled workers focusing on individual projects
4. flexible

Question 3

Disadvantages of job production

Answer 3

1. expensive to make
2. requires skilled workers and non-standarized materials
3. product might fail because of the lack of knowledge of the client, which may reflect badly on the business
4. very labour-intensive

Question 4

Batch production

Answer 4

Production of a group of identical products (batch refers to the fact that the items in each group go together from one stage of production to the next)

Question 5

Advantages of batch production

Answer 5

1. achieve economies of scale
2. allows more choice than mass production and captures more market share
3. useful for trailling products
4. helps deal with unexpected orders

Question 6

Disadvantages of batch production

Answer 6

1. may lose production time as machines are recalibrated and retooled
2. businesses may need to hold large stocks in case of unexpected orders
3. the sizes of batches depend on the capacity of the machinery (or of labour) allocated to them

Question 7

Mass / flow standardized production

Answer 7

Production of high volume of identical, standarized products

Question 8

Advantages of mass production

Answer 8

1. once set up, the system wil need little maintenance
2. allows to cater for larger orders, achieving economies of scale
3. labour costs are low as requires unskilled workers with a fully automated process
4. can respond to an increase in orders very quickly as the process has already been set up

Question 9

Disadvantages of mass production

Answer 9

1. set up costs are high
2. breakdowns are costly, as the whole assembly line may have to stop
3. dependent on steady demand from a large segment of the market
4. inflexible system
5. production process demotivating for workers who are doing repetitive actions

Question 10

Mass customization

Answer 10

Combines mass production with the personalization of custom-made products for marketing purposes

Question 11

Changing production method - Implications for HR

Answer 11

1. workers may have to be redeployed, retrained or even let go
2. refining roles and responsibilities of workers and middle managers

Question 12

Changing production method - Implications for marketing

Answer 12

1. Production runs can reflect the orientation of a business, as well as the choice of product available to the consumer, so the image or perception of the business is altered
2. distribution channels are affected
3. changes in cost of production could be passed on to the customer through changes in prices

Question 13

Changing production method - Implications for finance

Answer 13

1. impact on stock control, affecting costs
2. changes may take time and could interrupt current production, causing delays in the working capital cycle
3. any change will need financce

Question 14

Factors affecting which method of production is most appropiate for a given situation

Answer 14

1. the target market
2. state of existing technology
3. availability of resources
4. government regulations