Concept
How does production timing affect the choice of process?
IntroductionToBusiness OP 8D04gAa / 10.2. The Production Process: How Do We Make It?*
"A second consideration in choosing a production process is timing. A continuous process uses long production runs that may last days, weeks, or months without equipment shutdowns. This is best for high-volume, low-variety products with standardized parts, such as nails, glass, and paper. Some services also use a continuous process. Your local electric company is an example. Per-unit costs are low, and production is easy to schedule.\n\nIn an intermittent process, short production runs are used to make batches of different products. Machines are shut down to change them to make different products at different times. This process is best for low-volume, high-variety products such as those produced by mass customization or customization. Job shops are examples of firms using an intermittent process. Although some service companies use continuous processes, most service firms rely on intermittent processes. For instance, a restaurant preparing gourmet meals, a physician performing surgical procedures, and an advertising agency developing ad campaigns for business clients all customize their services to suit each customer. They use the intermittent process. Note that their “production runs” may be very short—one grilled salmon or one physical exam at a time."
Related Ideas
- How are different production processes and facility layouts organized?IntroductionToBusiness OP 8D04gAa · Glossary
- What types of production processes do firms use?IntroductionToBusiness OP 8D04gAa · 10.2. The Production Process: How Do We Make It?*
- What types of production processes do manufacturers and service firms use?IntroductionToBusiness OP 8D04gAa · Summary of Learning Outcomes
- Which facility layout best fits a firm’s production process?IntroductionToBusiness OP 8D04gAa · 10.4. Pulling It Together: Resource Planning*
- What decisions must firms make when planning production?IntroductionToBusiness OP 8D04gAa · 10.1. Production and Operations Management—An Overview*
- What are the three main types of operations management decisions?IntroductionToBusiness OP 8D04gAa · 10.1. Production and Operations Management—An Overview*
- How does scheduling coordinate production and service operations?IntroductionToBusiness OP 8D04gAa · 10.5. Production and Operations Control*
- What is production control, and how does routing improve operations?IntroductionToBusiness OP 8D04gAa · 10.5. Production and Operations Control*