Job Production
What is job production?
Producing unique items that are tailor made to meet the needs of individual customers.
What is batch production, and how does it differ from job production and mass production?
- Batch Production: a production method that involves producing similar items in groups
- Job Production: a production method where each item is customized individually (more time-consuming and high-cost)
- Mass Production: a production method where continuous, large volume, identical products are produced (maximizes economies of scale)
- Difference: Batch production offers flexibility between full customization (like job production) and high efficiency (mass production)
What is mass production and how is it different from mass customization?
- Mass Production: production of large amounts of standardized products on an assembly line
- Mass Customization: the production of large quantities of goods that can be adjusted to customer specifications
- Difference: using mass production makes all products standardized, while mass customized allows for products to be adjusted
What is mass customization, and how does it combine flexibility with the benefits of mass production?
- Mass Customization: producing large quantities of goods that can be tailored to customer specifications
- Combines flexibility (personalization) and low unit costs (economies of scale from mass production)
- Example: Car manufacturers using the same production line for various models with different custom features.
Why might a business choose to use batch production?
- When customers have very specific requirements that cannot be met using other operations methods
- If the number of customers is small, and demand is low
How might a bakery benefit from using batch production instead of mass production?
- Allows the bakery to produce diverse products (e.g., cupcakes, cookies) to meet various tastes.
- Flexibility to change batches (e.g., flavors, dietary options like gluten-free).
- Seasonal adjustments possible (e.g., holiday-themed treats).
- Avoids overproduction typical of mass production, minimizing waste and storage.
How does mass production help companies achieve economies of scale?
- Large volumes reduce average costs as fixed costs are spread over many units.
- Capital-intensive machinery increases productivity, lowering labor costs.
- Standardization allows consistency in materials, reducing waste and defect rates.
- Efficient, continuous production minimizes downtime, enhancing output.
How might a company like Nike benefit from offering mass customisation in its footwear range, and what challenges might it face?
Benefits:
- Increased customer satisfaction by offering personalized products.
- Builds customer loyalty and brand differentiation.
- Potentially higher prices for custom shoes, leading to greater profits.
Challenges:
- Increased production costs due to customization processes and inventory variety.
- Possible supply chain delays from handling customized orders.
- Potential return issues as customized products are harder to resell.
What are the key advantages and disadvantages of job production for a hairstylist?
Advantages:
- Flexibility to meet individual customer requirements (precise cut, colour, style, etc.)
- Higher worker motivation for employees who can use their skills and expertise
Disadvantages:
- Time consuming as specific customized services for hairstyles can take longer, which also limits number of clients taken in a day
- High costs for unique services which require specific products or tools, and also specialized workers
Consider a clothing manufacturer like Zara. What are some advantages and disadvantages for Zara when using batch production in response to seasonal fashion trends?
Advantages:
- Flexibility to respond to fashion trends quickly.
- Smaller, adjustable batches mean lower risk if styles change.
- Allows variety across seasons and styles, maintaining brand relevance.
Disadvantages:
- Increased production costs due to frequent machinery adjustments.
- Higher storage needs for diverse batches.
- Risk of unsold inventory if a batch does not perform well.
What are some potential disadvantages for workers in a mass production environment?
- Repetitive tasks can lead to boredom and lower motivation.
- Lack of variety in tasks may reduce job satisfaction and engagement.
- Lower motivation may contribute to higher turnover and absenteeism.
- Quality issues may arise if workers become disengaged or careless.
Out of the 4 different types of mass customisation, pick one and in what situation would a company use this?
1. Collaborative Customisation:
- Close interaction between the company and customer.
- Suitable for high-end, personalised products (e.g., luxury cars).
2. Adaptive Customisation:
- Customers choose from pre-set options.
- Best for products with variable needs (e.g., mattresses, clothing).
3. Cosmetic Customisation:
- Changes the product's appearance (e.g., packaging).
- Ideal for brands focusing on aesthetics (e.g., cosmetics, food).
4. Transparent Customisation:
- Personalized items suggested based on customer data.
- Useful in e-commerce where customer data is readily available for recommendations (e.g., Amazon).
Is job production a more capital or labour intensive process? Why?
- Labour intensive process
- Job production involves creating customized products that are tailored to meet the needs of specific customers
- Specialized labour (high levels of skills, time, and attention) is required for each product
How could the trade-offs in batch production impact a company’s long-term profitability?
Positive impacts:
- Flexibility to adapt products for customer needs supports long-term market fit.
- Risk diversification with various product lines; not dependent on one product.
Negative impacts:
- Limited economies of scale compared to mass production; higher per-unit costs.
- Storage costs are higher due to varied inventory needs.
- Repetitive tasks in batch production may lower worker motivation, affecting productivity.
Why is mass production typically less flexible than other production methods like batch production?
- Focus on standardization limits design changes once production starts.
- Assembly lines are optimized for specific products; altering them is costly and time-consuming.
- Adjusting machinery settings or retooling is complex, making rapid changes impractical.
- Well-suited for high-demand items, but not for customized or variable products.
Given the advantages and disadvantages of mass customisation, do you think it is more beneficial for high-end or low-end products? Justify your answer with examples.
High-End Products:
- More beneficial as they can justify higher prices and cater to consumer desire for exclusivity (e.g., luxury cars, custom jewelry).
- Customers are willing to pay a premium for individualized features.
Low-End Products:
- Can still benefit, but requires careful cost management (e.g., Nike By You shoes).
- Higher customisation costs may make low-end customisation less viable unless demand is high enough to offset costs.
A custom jewelry designer creates one-of-a-kind pieces for clients, with personal specifications. What challenges might the designer face when using job production, and how could they address these challenges to ensure both quality and profitability?
- Time management could be a challenge, in response the business can use mass customization instead
- The challenge of high costs can also be addressed by implementing mass customization to reduce labour costs
Imagine a tech company that produces both high-end and budget-friendly smartphones. How might they balance the flexibility and variety of batch production with the need to maintain quality and keep production costs manageable?
- Standardize shared components (e.g., screens, batteries) across product lines for cost efficiency.
- Use modular design: produce core components in batches, then customize features per market.
- Rely on data analysis for demand forecasting to avoid overproduction or shortages.
- Rotate workers to minimize repetitive strain, boosting morale and maintaining quality.
- Schedule production to align with anticipated demand, adjusting batches as needed.
If a consumer electronics company faces fluctuating demand, how might they address the inflexibility of mass production? Propose a strategy.
- Use flexible automation: robotic systems that can be reprogrammed for different products.
- Incorporate demand forecasting to adjust production volumes and reduce inventory risks.
- Introduce periodic quality checks and gradual product line shifts based on market trends.
How could advances in technology, such as AI or 3D printing, potentially reduce the disadvantages of mass customisation, such as increased costs and longer production times? What new challenges might arise as a result of these technologies?
Advantages:
- AI could streamline the design process, reducing lead time for custom orders.
3D printing can enable faster production of customised items at lower cost.
- Automation could reduce labour costs and errors in customisation.
New Challenges:
- Technology investments could increase upfront costs for businesses.
- Maintenance and updates to tech could become costly.
- Over-reliance on tech might reduce human creativity and result in generic customisation options.