Learning Objectives TOPIC: Topic 5: Operations Management LESSON TITLE: Methods of Production COMPETENCY FOCUS: Technological Impact (C4): students will develop their understanding of how technology has made an impact in the production process of products for a business. [IB Learner Profile Development: Balance] Learning Objectives By the end of the lesson, you should be able to… LO1) To identify 5 different methods of production LO2) To describe the features of each production method, using examples LO3) To compare and contrast the features of each production method. SMSC: You will assess the organisational culture of businesses in terms of fundamental structure, purpose and strategy development. CRITICAL THINKING KEY: Knowledge Application Analysis Evaluation

Methods of Production Sketch how you think the following products are made: Jaguar car Loaf of bread Chocolate bar Handcrafted Doll’s House [10mins]

Methods of Production Watch the following video clip and see how many production methods you can identify: http://www.youtube.com/watch?v=DTWnQDAhp9k

Methods of Production Production can take place in different ways depending on the type and quantity required of the product. A business must decide on the most suitable method to manufacture its goods. It is likely that products will be produced differently. For example a plastic bottle might be produced using automated machinery but a watch might be made by hand. So, you have decide what to produce, now to decide how you are going to produce it so you get maximum productive efficiency. Job production Batch Production Flow Production Cell Production Mass Production

Methods of Production Job production Batch Production Flow/Mass Production Mass Customisation Cell Production

Job Production Making one thing at a time Used for individual, unique products, ‘one-offs’ When work on one product is finished, production of another can begin, only one ‘job’ is completed a any one time. Workforce made up of skilled craftsmen EXAMPLES: Ships, bridges, made-to measure clothes, wedding cake ADVANTAGES: Easier to customise an item More motivated workforce Organisation is simple DISADVANTAGES: Expensive (high labour cost), takes a long time and requires highly skilled labour. Long lead times.

BATCH PRODUCTION Combination of job and flow production Demand for products is more regular rather than one-off Make a limited number of one identical product then stop, reorganise and make a batch of something else EXAMPLES: Houses, Bread, Different Sized Clothing; Milk DISADVANTAGES Requires equipment and good management skills. High unit costs. Money tied up in work-in-progress. ADVANTAGES Less waste than job production; Can produce things in limited quantities. Some standardization as each batch will be the same.

Henry Ford Early 1900’s; Took inspiration from a butcher and the way that they produced meat. As a result of these developments in method, Ford's cars came off the line in three minute intervals. This was much faster than previous methods, increasing production by eight to one (requiring 12.5 man-hours before, 1 hour 33 minutes after), while using less manpower.[2] It was so successful, paint became a bottleneck. Only japan black would dry fast enough, forcing the company to drop the variety of colors available before 1914, until fast-drying Duco lacquer was developed in 1926.[2] In 1914, an assembly line worker could buy a Model T with four months' pay. “You can have the Model T in whatever colour you like…as long as it’s black!”

FLOW/MASS PRODUCTION Producing as many as possible of an identical product Production line Used for mass market products Usually highly automated Production is continuous with no stoppages (shift work) EXAMPLES: Cadburys, Coca-cola, BMW, Jaguar ADVANTAGES: Economies of scale; Can sell at competitive prices Use of automation, therefore less time-consuming and costly DISADVANTAGES: Need to invest lots of money; Machinery can break down, lack of employee motivation

Production in Action A business may use a combination of all three types of production at different times depending on product or customer needs. MASS: Most BMW cars BATCH: Most expensive top-of-the range JOB: Custom make cars full of unusual gadgets (James Bond).

MASS CUSTOMISATION Only possible due to advances in technological innovation such as CAD/CAM Production lines now are used to make a range of varied products using highly-skilled workers and the latest technology For example: Dell Computers can make a customised computer to suit customer needs in a matter of hours.

MASS CUSTOMISATION

CELL PRODUCTION Cell production involves splitting production into self-contained groups that are responsible for contributing to the whole production process. A form of flow production Instead of each individual worker performing a single task, the production line is split in to several mini-production lines, known as cells. Each individual cell completes a unit of work e.g. a complete washing machine motor not just a small part of it. Each cell has a team leader

Box Workshop Your task: You will each be given a customer brief. You will need to produce your product to exact customer requirements.

Instructions for making your boxes: Box Workshop Instructions for making your boxes: Cut along solid lines Fold along dotted lines

Customer Briefs BRIEF LABOUR REQUIRED CUSTOMER BRIEF 1 A customer has come in to your workshop. They want a black box of even colour with a domino effect on each face. 2 3 Your customer wants as many boxes made, as quickly as possible with a blue background colour on each face and 1 red spot in the centre of each face. A customer would like a box produced to make it look like a computer.

Evaluation What were the good and bad points of each production method? What was the quality like? Why is this important? How much waste did you have?

TASK 2 Complete case study ‘Sunburst Bakeries’ on pg. 319 [30mins]

H/L Extension Cell production, teamwork & productivity implications. Implications of changing the method of production on other functional areas.

Name and Explain the Definition… The production method that combines elements of job production and flow production… Why the cost of producing each unit decreases because you are producing more… BATCH PRODUCTION ECONOMIES OF SCALE JOB PRODUCTION FLOW PRODUCTION Producing one good at a time A continuous production of goods When products are of good standard… A worker concentrates on one specific task QUALITY SPECIALISATION