The learning outcomes (or assessment objectives) for this section of the IB Business Management syllabus are:
The following operations methods (AO3)
Job production
Batch production
Mass (flow) production
Mass customization
Jigsaw:
Operations methods to share with each other in class (write answers down in a table)
(1) Job Production
(2) Batch Production
(3) Mass/Flow Production
(4) Mass Customisation
Questions:
What is your assigned operations method?
Can you define it and explain how it works?
What are the advantages and disadvantages?
Please find a real life example
Why is this operations method best for this company?
In what ways is this operations method limiting for them?
Can answer here: https://docs.google.com/document/d/1NVKTD0uG3fSFxpjroTNNR_R2IAf_S94660k291y0gpI/edit?usp=sharing
Questions: A, B, C, D, E
Optional: F
What you should know
By the end of this subtopic, you should be able to:
define the following terms: (AO1)
job production
batch production
mass/flow production
mass customisation
examine the features of the main methods of production, including: (AO3)
job production
batch production
mass/flow production
mass customisation
https://quizlet.com/pa/826558197/52-operations-methods-flash-cards/?i=4jrhob&x=1jqt
https://www.gimkit.com/view/6503ad4974d79d002d2612e1
Batch production involves producing a set of identical products, with work on each batch being fully completed before production switches to another batch, which may have slightly different specifications.
Job production is the output of a customized good or service that meets the specific needs of a specific customer. This operations method involves the output of unique or one-off orders.
Mass customization combines the benefits of mass production with the personalization of job production in order to meet the individual needs and preferences of customers.
Mass production (or flow production) involves different operations continuously and progressively carried out in sequence, with a high volume of output of standardized products.
Job production refers to the production of unique items that are tailor-made to meet the needs of individual customers. The products are highly specialised and often unique. Highly skilled workers produce a single good or provide a service to one customer at a time. Producing these goods and services is usually a very labour-intensive process.
Job Production Example:
Royal Wedding: How to dress a Royal groom - BBC News
Hair Cuts
Advantages and Disadvantages of Job Production
Batch production involves producing items in groups of identical products. Small changes are made in each batch so that a range of customers’ needs can be fulfilled.
Businesses that make a range of different products use batch production.
Batch Production Examples:
Bakery that makes batches of cup-cakes and batches of cookies separately.
Clothing manufacturers Zara and H&M use batch production, by producing skirts and other clothing items in batches of sizes, colours and styles.
Advantages and Disadvantages of Batch Production
Mass production (also known as flow production) involves the production of large amounts of standardised products on an assembly line. Mass/flow production is a continuous process whereby a product moves on an assembly line from stage to stage. At each stage, a worker or robot performs some operation on the semi-completed product, which then flows to the next stage. Products are continuously being started and completed.
Capital intensive refers to the manufacturing of a good or provision of a service that relies mainly on the use of machinery and capital equipment, e.g., conveyer belts and automated production systems. This helps to maximise output and cut unit costs of production due to economies of scale. Mass production uses relatively unskilled workers as the production process is largely automated.
It is used for products that require large-scale production of standardized products for mass market products, such as bottled water sold to supermarkets and other retailers or windscreen wipers sold to different car manufacturers. Standardization means that products are mass manufactured to an identical standard, with all output being homogeneous.
Mass/Flow Production Examples:
Advantages and disadvantages of Mass/Flow Production
Mass customisation involves producing large quantities of goods that can be adjusted to customer specifications. This combines the flexibility and personalisation of custom-made products with the low unit costs of mass/flow production resulting from economies of scale.
Mass Customisation Production Examples:
Hasbro Selfie Series: Mass Customized Action Figures With 3D Printing
Customization Types:
Collaborative customisation. This is where there is close interaction between the business and customer to adapt a mass-produced product according to the customer’s specifications.
Adaptive customisation. Customers can choose from pre-set customisations provided by the business. For example, there are a variety of mattresses on the market that can be adjusted from very hard to soft according to the customer’s requirements.
Cosmetic customisation. This is where the face of the product, often the packaging, is changed to suit the needs of the customer.
Transparent customisation. Personalised items are recommended to the customer, based on their online shopping cart. This involves analysing online customer data to make recommendations.
Advantages and disadvantages of Mass Customisation
What determines which operations/production methods you will use?
What type of good?
How much do I need to make?
What quality do I need to make it?
Individuality and Uniqueness of product?
Cost of alternatives?
Is it cheaper to use human labour or capital equipment?
Storage/Inventory?
Time to produce?
Affect on employees?