1. Production Methods

2. One-Off Usually produced to a specific client specification
Small level of demand
Requires very high skill levels and high labour costs, resulting in high unit costs
Generally low capital costs
Worker satisfaction generally very high; often involved in every production stage from start to completion.
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3. Batch Flexible system, a wide range of products can be produced
Can react to demand, stop or increase production run
Workforce usually less skilled than one-off, will operate one or two processes
Medium investment needed for a range of machinery that can be set up for different operations.
Workers sometimes have opportunities to work on more than one process
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4. High Volume Minimal, if any variation in product
Regular, high demand for product needed
Usually very high capital investment, low unit cost
Relatively low skilled workforce – repetitive task, mostly fully automatic production systems
Control maintenance team required, stoppage costly
Often low job satisfaction, workforce usually only involved in a small part of the production cycle
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5. Modular/Cellular Production systems
Functional layout of module/cells
Flexible system offering rapid change in production reacting to consumer demand
High level of job satisfaction, operators work in flexible teams carrying out different tasks, opportunities for training.
All workforce responsible for quality control
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6. Just-In-Time Manufacture
The partnership between the manufacturer , suppliers and distributors is critical – if deliveries are late production stops
Workforce relationships are also important – staff absenses or strike action can halt or delay production
Workforce must be multiskilled, flexible, have job satisfaction and be consulted in decision making
A spirit of co-operation is vital; proposals for improvement are welcomed by management.
JIT is a very flexible manufacturing system and can react very quickly to changes in consumer demands
The product is electronically tracked through the system to carefully monitor progress and ensure that the manufacturing schedule is efficient
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7. Bought in parts No Need for production space of components
Speed up overall production
Quality assured by the component manufacturer, specified tolerances
Specialist companies provide components, cost benefits through economy of scale
Choice of suppliers if there are service/quality difficulties, cost benefits through price negotiations and loyalty contracts
Reduces storage costs, components available when required

8. Standardised components
The key points relating to bought in components are relevant to standardised components
Minimal interface and tolerance problems; standards usually generated by independent body e.g. BSI
Ease of maintenance, replacement parts for consumers.

9. Implications of industrial production
VW transparent factory