B4.1 / Production s

How is the ideal production system determined for a product?

B4.1 focuses on the practical application of production systems. Students must understand how to identify, categorize, and justify the systems used to manufacture products, ranging from individual craft items to globally distributed goods

Internal economy of scale: Falling average cost of production as a producer becomes more efficient due to larger number of units of output. E.g. through mechanization, automation, buying raw materials or parts in bulk etc.

External economy of scale: Falling average cost of production as a producer to becomes more efficient due to growth of industry in a region. E.g. through better infrastructure (roads, ports, housing etc.), through having easier access to more suppliers of part and raw materials, through innovation forced by competition, through lobbying in larger industry collaborations, etc.

4.1.1 - Production systems

4.1.1.1 | Craft production

This type of production generally makes a single, unique product from start to finish. Craft production tends to be labour-intensive, and often highly skilled or specialised.

Prior to the Industrial Revolution, most products were manufactured by craft techniques. The processes, techniques and materials that were used were restricted by the technology and energy sources that were available at the time. The development of skills was slow; sources of materials and energy were few and would depend on what was available locally. Sales and distribution happened on local markets. The craftsman was the designer, and the client was the user.

Advantages

Flexible production system enabling a large variety of products to be made.
Quality tends to be seen as considerably higher than mass-produced products.
Products can be customised to fit personal needs.
Value of the product will be high due to people willing to pay the higher costs of a one-off product. High status is linked to craft products.

Disadvantages

Production costs are high, particularly labour costs due to the need for skilled craftsmen.
Unit cost is usually high.
Can take a long time to produce individual items due to the fact this is the first time it is being made.
Craft production cannot be used for large-scale production.
Materials costs can be high, due to the craftsman not being able to buy in bulk.

4.1.1.2 | Mechanized production

Mechanised production is a volume production process in which human-operated machinery is used to carry out some or all of the repetitive tasks.

Mechanisation might include the following elements:

Using machines optimized to perform specific tasks fast, safely and accurately.
Using jigs and templates to ensure quality control.
Using conveyor belts to control the rate of production and keep components flowing from one process to another.

Advantages

The creation of economies of scale - A product is cheaper due to the decreased cost per unit.
Less time is taken to complete individual steps in a production process.
Often repetitive or hazardous tasks can be carried out by machines.
Material costs are low due to high volume, bulk buying options.
Quality control - little variance in products (consistency), so quality controls or checks are easy to enforce.
The standardisation of products and components is possible due to the reduction of human error.

Disadvantages:

Cost of energy, training, initial set up costs.
Redundancy - machines replacing humans.
Low job satisfaction of workers due to repetitive nature of the job.
Health and safety - factories can be dangerous places with large, noisy machines.
Repetitive strain - from performing the same task continually over long periods of time.
Increased wages due to highly skilled operators of specialist machinery or processes.
Consumer choice is minimal as products are identical. Lack of customisation.

4.1.1.3 | Automated production

The term ‘automation’ refers to a wide variety of systems or processes that operate with little or no human intervention. In most modern automated systems, control is exercised by the system itself, through control devices that sense changes in conditions.

The development of computer and information technology led to the introduction of automation via computer-controlled, electrically powered assembly lines. Automation has made a major contribution towards an increase in both free time and real wages enjoyed by most workers in industrialised nations.

The difference between automated and mechanised production is that automation is more focused on technology and electronic data processing that replaces human labour with machines, while mechanization is based on machinery and equipment that ensures accuracy and speed of operation.

Advantages

Eliminates human error.
Built-in quality control.
Minimises waste.
Consistency of output.
Reduced labour costs.
Improved health and safety - less humans, less accidents.
Machines can run 24/7.
Adaptable.
Consumer choice; a wider variety of products can be produced cost-effectively, giving them more options to choose from.

Disadvantages

High start-up costs. Capital investment.
Training costs of staff.
Social implications - reduced workforce.
Maintenance costs - expensive. Can stop production.
Re-tooling - expensive and time-consuming.

4.1.1.4 | Assembly line production

Assembly line production is the mass-production of a product via a flow line based on the interchangeability of parts, pre-processing of materials and work division.

Put more simply, it means:

Each manufacturing task is divided up into basic stages.
Each stage is carried out using specialist labour and equipment - work division.
A flow line (conveyor belt) moves each part from one stage to the next. This controls the rate of production - how fast it is made. This can, and often is, sped up or slowed down depending on demand.

This makes each individual task repetitive and therefore gives the manufacturer a great deal of quality control. However, these repetitive tasks are increasingly being carried out using control technology - robots.

The benefits of assembly line manufacture to both the consumer and producer are cheaper products - cheaper to make, cheaper to buy.

4.1.1.5 | Comouter integrated manufacturing

Computer Numeric Control (CNC) refers specifically to the computer control of machines for the purpose of manufacturing complex parts in a variety of materials. The machines are commonly controlled by a standardized programming language called ‘G code’ (Geometry code). Each code is assigned to a particular operation or process. The codes also control X, Y, and Z axis movements as well as feed rate (speed).

When CAD systems are linked to manufacturing equipment which is also controlled by computers, they form an integrated CAD/CAM system. Computer Aided Manufacture (CAM) equipment relies on a series of numeric codes, stored as computer files, to control manufacturing processes. This is then passed onto the CNC where the codes are translated into component shape geometry. The CNC then uses these to cut the required parts.

CAM offers significant advantages over traditional manufacturing approaches. CAM is usually associated with the elimination of human error, reduction in costs, and precision manufacturing. Although the initial set-up costs of a CAD/CAM system can be significant, these can be offset by increased production time, and manageable and predictable tool wear, replacement and maintenance.

4.1.2 - Scales of Production

4.1.1.1 | Economies of Scale

Economies of scale are cost advantages that arise from increasing production volume. The more units a manufacturer produces, the cheaper it becomes to produce each unit. Economies of scale work by:

Spreading Fixed Costs: Certain costs remain constant regardless of production volume, like rent, salaries for administration, or equipment depreciation. By producing more units, these fixed costs are spread out over a larger number of items, reducing the cost per unit.
Bulk Discounts: Suppliers often offer lower prices per unit when buying in bulk. A company producing a large volume can leverage this to reduce material costs.
Specialization and Efficiency: Larger production allows for the specialization of labour and processes. Workers become more efficient at specific tasks, and dedicated production lines can streamline operations.
Research and Development: Large companies can invest more in R&D to improve efficiency, develop new technologies, or create innovative products, ultimately lowering production costs.

Diseconomy of Scale can occur when a manufacturer for instance runs into stricter government regulation due to its size of operation. Also raw materials can become more expensive if demand outgrows local supply. Finally, in large, impersonal organizations, workers may feel disconnected and unmotivated. This can lead to decreased productivity and increased absenteeism.

4.3.2 | One-off, Batch production and Continuous Flow

One-off production refers to creating a single, unique or specialist item. In one-off production, a single product is usually designed to a client’s specifications. The product is custom-made or bespoke. An example could be a tailor designing and sewing a one-of-a-kind suit. When one-off products for local communities are created using local materials and traditional crafts this is known as vernacular design.

Batch production involves producing a set quantity of identical items at a time. Another term for this is lot production. In batch production materials are carefully selected for their cost and manufacturing costs are lower than one-off production. An example of this would be garment manufacturing. The quantity can range from a set of 4 cushions made for a specific design to 20,000 jumpers made for a department store. The size of a batch is determined by expected sales and by what a producer is prepared to lose in case a batch needs to be recalled. Food with specific sell-by dates is batch-produced, like cakes or bread.

Small-scale production (one-off or small batch) using manual skills is known as craft production. Often only rudimentary or basic tools, machinery and equipment are used. Products such as wedding dresses, jewellery, ceramics and physical models for industrial design use this scale of production.

Continuous Flow Production or Continuous-flow Manufacturing (CFM) is the uninterrupted production of a high volume of identical units. In CFM a production line is kept running 24 hours a day, seven days a week to maximise production and eliminate the extra costs of starting and stopping the production process. The process is highly automated and few operators are required. An example of CFM could be a bottling plant continuously filling and capping beverage bottles on a conveyor belt.

The terms mass production and continuous flow production are often used interchangeably. Mass production is a specific type of continuous flow production. Mass production also focuses on high-volume, standardized goods, but typically involves:

Assembly lines with specialized tasks for specific trained operators.
Producing large quantities of identical units before potentially switching to a different product.

Producers and manufacturers need to carefully select the most appropriate scale of production based on the following product, cost and market factors:

Product:
- Demand: High or consistent demand often favours continuous flow/mass production, while low or unpredictable demand might be better suited for batch or even one-off production.
- Complexity: Simple products with few components are ideal for mass production, while intricate products might require more flexibility of batch or one-off production.
- Customization: Highly customizable products are often made through one-off or batch production, while standardized products are better suited for mass production.
Production Costs:
- Setup Costs: High setup costs for machinery or tooling might favour larger batch sizes or continuous flow to spread the cost over more units.
- Inventory Costs: Holding large inventories can be expensive, so batch production helps manage inventory levels for products with fluctuating demand.
- Technology Costs: Advanced automation might favor continuous flow/mass production, while less complex products might be produced effectively with simpler tools in batch or one-off settings.
- Labour Costs: Specialized skills for operating complex machinery might be needed for mass production, while batch or one-off production might utilize more general crafting skills.
- Environmental Impact: Continuous flow can be energy-intensive, while batch or one-off production might offer more flexibility for using sustainable materials or processes.
Market Factors:
- Lead Time: Fast turnaround times for products might favour batch or one-off production, while continuous flow can be efficient for readily available products.
- Competition: High competition in a saturated market might favour low-cost mass production for standardized goods, while differentiation through customization could suggest batch or one-off production in a niche market.

Depending on the specific context in which a manufacturer operates, these factors will have a different value in the trade-off between different scales of production. There are also emotional factors: A small family business might not want to scale up as it would no longer be a family business ...

4.3.2 | Mass customisation

Mass customisation is a production process that combines elements of mass production with those of bespoke tailoring. Product features are adapted to meet individual customers' needs.

Mass customisation uses some of the techniques of mass production; for example, its output is based on a small number of platforms, the core elements of the design or components that make the basis of the product. In the case of a watch, the internal mechanism is the platform to which can be added a wide variety of personalised options at later stages of the production process.

Therefore the purchaser of the Swatch watch has thousands of different options in terms of colour, straps, watch faces etc, yet all of them are based on just a few timekeeping mechanisms. Mass customisation is being introduced by many companies. Even a traditional mass production manufacturer like BMW is introducing personalisation of their cars. Nike By You (formally NIke ID) allows customers to customise their clothing and footwear before buying - Have a go: Nike By You.

Mass customization is a manufacturing strategy that combines the low unit costs of mass production with the ability to personalize products to a certain degree to meet individual customer needs. It allows companies to offer a wider variety of options without sacrificing efficiency. Mass customisation aims to deliver products that best meet the customers' needs with near-mass production efficiency.

Benefits of mass customization could be:

Increased Customer Satisfaction: Customers get a product closer to their preferences.
Reduced Inventory Costs: Companies don't need to hold a vast stock of pre-made variations.
Differentiation in Competitive Market: Stands out from competitors offering generic products.