3.1 Production process

3.1 Production process

1. Methods of production

   • Flow production
     • 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

2. 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