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  • Production Methods & Kaizen

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    Kunal Thakre
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    Production decisions involve deciding methods for new production runs and analysis of existing methods. The choice of production method and the factor inputs depends on such things as: the nature of the product Factor Costs the scale of production. As technology and analysis of production methodology has improved, methods have changed dramatically.

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    Methods

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    Production decisions involve deciding methods for new production runs and analysis of existing methods. The choice of production method and the factor inputs depends on such things as: the nature of the product Factor Costs the scale of production. As technology and analysis of production methodology has improved, methods have changed dramatically.

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    8 views18 pages

    Production Methods & Kaizen

    Uploaded by

    Kunal Thakre
    Production decisions involve deciding methods for new production runs and analysis of existing methods. The choice of production method and the factor inputs depends on such things as: the nature of the product Factor Costs the scale of production. As technology and analysis of production methodology has improved, methods have changed dramatically.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 18

    http://www.bized.co.

    uk

    Production Methods & Kaizen

    Copyright 2007 Biz/ed

    http://www.bized.co.uk

    Production Methods & Kaizen

    Copyright 2007 Biz/ed

    http://www.bized.co.uk

    Production Methods

    Copyright 2007 Biz/ed

    http://www.bized.co.uk

    Efficiency
    Any production method relies on efficiency this can be viewed in different ways: Productivity a measurement of output per unit of the factor used (labour, capital or land)
    Total Output
    Productivity = ------------------Units of Factor

    Technical Efficiency output produced using the fewest possible inputs Productive Efficiency output produced at the lowest possible cost
    Copyright 2007 Biz/ed

    http://www.bized.co.uk

    Efficiency
    Production decisions involve deciding methods for new production runs and analysis of existing methods. Decisions may include:
    Substitute machinery for labour? Use of new technology? Organisation of the production layout? Change of production method?

    Copyright 2007 Biz/ed

    http://www.bized.co.uk

    Production Methods
    Agriculture tends Whilst all output can be classed as production, to be very land different production intensive methods may be more efficiency could appropriate for different be measured in products or services. terms of output per acre/hectare

    Copyright: Photolibrary Group

    Copyright 2007 Biz/ed

    http://www.bized.co.uk

    Production Methods
    As technology and analysis of production methodology has improved, methods have changed dramatically what used to be labour intensive production methods are now capital intensive

    Copyright: iStock.com

    Copyright 2007 Biz/ed

    http://www.bized.co.uk

    Production Methods
    The choice of production method and the factor inputs depends on such things as: the nature of the product
    factor costs the scale of production
    TextileproductionSource of Wealth and Fear Bottle factory is line California Oil Copyright: Stock.Xchng Group Copyright: Photolibrary Copyright: iStock.com

    Copyright 2007 Biz/ed

    http://www.bized.co.uk

    Production Decisions
    Market size and One-Off Order? Segment

    Which method?

    Type of Product

    Mass Market product? Complexity of design

    Factor Costs Batch? Land, Labour and Capital

    Copyright 2007 Biz/ed

    http://www.bized.co.uk

    Production Methods
    Job Production One-off production each item might have particular specifications Flow Production suitable for mass market products that are identical Batch Production each stage of the production process has an operation completed on it before moving on to the next stage allows modifications to be made to products that otherwise are the same
    Copyright 2007 Biz/ed

    http://www.bized.co.uk

    Production Methods
    Which is more efficient? This?
    Operation 1

    6
    7 Finished Product 11 10 9 8

    Copyright 2007 Biz/ed

    http://www.bized.co.uk

    Production Methods
    Or this?
    1a
    Operation 1

    1b 2a

    1c 2b 3c

    1d 2c 3d 4
    Finished product

    3a

    3b

    Copyright 2007 Biz/ed

    http://www.bized.co.uk

    Production Methods
    Or this?

    Cell 1

    Cell 2

    Cell 3

    Finished Product

    Finished Product

    Finished Product

    Copyright 2007 Biz/ed

    http://www.bized.co.uk

    Production Methods
    Answer it could be any of them! The design of the production space can influence:
    Output levels Factor use Efficiency Cost levels Quality assurance procedures
    Copyright 2007 Biz/ed

    http://www.bized.co.uk

    Kaizen (Continuous Improvement)

    Copyright 2007 Biz/ed

    http://www.bized.co.uk

    Kaizen (Continuous Improvement)


    Japanese concept not made redundant by the decline of the Japanese economy which may be due to other institutional factors! Focus on gradual and continuous improvement A whole business philosophy Importance of EVERYONE buying into the concept and the vision
    Copyright 2007 Biz/ed

    Kaizenattention paid to customer Great


    Flexible working practices and
    requirements and needs

    http://www.bized.co.uk

    empowerment help increase efficiency, reduce costs and improve motivation Efficient stock control methods help reduce costs and improve cashflow Leadership seen as vital. Ability to communicate a clear vision, take people along with the vision and to think about where the company needs to be in 5, 10, 15 and 20 years time Fundamental principles often characterised as lean production reducing waste, zero defects, high quality control measures at all stages
    Punctuality in all aspects delivery, supply, manufacture, etc.
    Copyright 2007 Biz/ed

    http://www.bized.co.uk

    Quality Assurance
    Six Sigma Methodology Coined by Motorola Engineer Bill Smith Now a major influence on production methods and quality assurance Data and statistical driven approach to eliminate defects in production Aims to improve processes and reduce variations in quality Necessitates organisational change, training and planning
    Copyright 2007 Biz/ed

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