MGIS 317 Lecture Notes - Mass Production, Batch Production, Job Production

• School: University of Calgary
• Department: Management Information Systems
• Course: MGIS 317
• Professor: Ronald Schlenker

Document Summary

Group of identical products pass through each stage together. Labour and machines must be flexible to switch to making batches of other designs. Specialized often expensive, capital equipment- but can be very efficient. Flow production of products with many standardised components but customized differences too. Low unit costs due to constant working of machines, high labour productivity and economies of scale. Combines low unit costs with flexibility to meet customers individual requirements. Expensive product redesign may be needed to allow key components. Able to undertake specialist projects or jobs often with high added value. Faster production with lower unit costs than job production. Some flexibility in design of product in each batch. High levels of stocks at each stage of production. If the market is very small, then job production is likely to be used. Flow production is most efficiently adopted when the market for similar or identical products.