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A Quick guide
INTRODUCTION
Production is the function by which goods and services are produced. A typical production system comprises of three main components: Inputs, Transformation process and Output. Push method - stock is pushed up the system to ensures customer satisfaction and large storage. Pull method stock is pulled down the inventory to ensure Quality and reduced storage costs
Is some times referred to as lean production It is a Japanese philosophy creating the amount of product needed when the customer requires it Product arrives Just In Time, reducing stock storage
ADVANTAGES
Increases production efficiency Reduces, working time waste, raw materials, stock storage costs and other resources
DISADVANTAGES
Requires a complete overhaul and this can be difficult and costly Supply of raw materials disruption risk
BATCH PRODUCTION
Require a group to move through the production process at the same time. Often used after business growth, stability and volume of production increases. This method is usually used by bakeries.
BATCH: ADVANTAGES
It is cheaper to produce a number of each item in one
go Employees increase their knowledge and skills, resulting in increased productivity Faster to produce large quantities
BATCH: DISADVANTAGES
Requires detailed planning of what will be produced and when Overproduction is common and costly Often requires higher mechanical usage, reducing employee population and creation of jobs
Production is a continuous process. This method is usually used where product is standardised.
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ADVANTAGES
Capital intensive, therefore gives a high number of product is produced at very low cost. Lowers the cost per unit
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DISADVANTAGES
The process is difficult to alter, for example new product design If design changes, then it takes great cost and time to achieve
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