Types of Production: Job Order and Batch Production

Study Notes

Operators become more skilled and competent with each job, providing learning opportunities.
Full potential of operators can be utilized.
Opportunity exists for creative methods and innovative ideas.

Defined by the American Production and Inventory Control Society (APICS) as a form of manufacturing.
Characterized by: • Shorter production runs • Plant and machinery are flexible • Plant and machinery set up is used for the production of an item in a batch and changed for processing the next batch • Manufacturing lead time and cost are lower compared to job order production
Advantages: • Better utilization of plant and machinery • Promotes functional specialization • Cost per unit is lower compared to job order production • Lower investment in plant and machinery • Flexibility to accommodate and process a number of products • Job satisfaction exists for operators

Defined as the manufacture of discrete parts or assemblies using a continuous process.
Characterized by: • Very large volume of production • Machines are arranged in a line or product layout • Product and process standardization
Production management deals with decision-making related to production processes to produce goods and services according to specifications, in the right quantity, at the right time, and at minimum cost.

To produce goods and services of Right Quality and Right Quantity at the Right Time and Right Manufacturing Cost.
Objectives include: • Right Quality: The quality of the product is established based on customer needs and technical characteristics. • Right Quantity: Produce the products in the right number to avoid excess or shortage. • Right Time: Timeliness of delivery is a key parameter to judge the effectiveness of the production department. • Right Manufacturing Cost: Manufacturing costs are established before product manufacturing to reduce variation between actual and standard cost.

Defined as a conversion process that includes manufacturing, which yields a tangible output: a product.
Operations can be categorized into Manufacturing Operations and Service Operations.

Concerned with activities that affect human behavior through models.
Interested in decision-making behavior.
Models represent a schematic representation of a situation used as a tool for decision-making.

Operations strategies must be consistent with the overall corporate strategies.
A forced choice model can be used in strategic planning, considering environmental considerations and the organization's position, current production/operations, and management options.