Project Management and Planning

Every day, business executives make decisions, many of which are procedural in nature, such as what measures are required to resolve customer relations concerns or coaching an employee on actions to be taken. Certain decisions have far-reaching consequences for the business. These types of decisions, like as expansion plans, product development, marketing, and long-term business funding, can be intimidating and cause anxiety in managers. When it comes to production, critical and creative decision making is critical, and managers must make smart decisions when it comes to structuring production processes (Davis, Fargher & Trace, 1984). Here are several method productions that have an impact on company decision making: Batch production is mostly used in manufacturing where you group similar items in order to improve proficiency and reduce time wastage. This method facilitates the completion of tasks all together (in batches) rather than completing a full process individually. Some of the reasons why companies employ this method are because batch production is cost saving since goods are bought in bulk amounts. There are some flexibilities with this method since it is possible for companies to offer their customers some choices and make them all together rather than just one. Another key benefit about the batch production is that you can start to use specialist equipment, specialist staff to work on each stage of production. It is also flexible if you suddenly get a request for a large quantity because it you don’t have to stop the production line, you just simply increase the size of the batch (Davis, Fargher & Trace, 1984).

This method is not consistent in all industries. It is mostly used by companies like bakeries, for example, the batch of buns being prepared in the oven. They come out altogether just the way they went in together enabling you to concentrate the skills on each stage of production process.

Mass Production

This is also known as flow production. It refers to the process of manufacturing large number of similar products effective and efficiently. It is mostly characterized by mechanization, for example, assembly line technology. Mass production is aimed at minimizing labor cost due to increased automation and efficiency. Some of the factors that impact a company to employ this method include;

1. Time taken in production is greatly reduced which gives the company more time to market the products which results to increased profits. McDonald’s for example uses this production method which gives it an advantage over the competitors due to the speed at which it can produce a meal for the customers who are time conscious.

2. Labor cost is minimized for the mass produced goods with assembly line replacing operations previously performed by the employees thus leading to lower head count which means more profits for the company.

Continuous Production

This is another method of production which involves the production of many similar products. It is close to mass production, the only difference is that with this, production here is kept running 24 hours a day, seven days a week in order to increase production and eliminate the added costs of starting and then stopping the production.

Many companies are also attracted to this method since it is highly automated therefore requiring fewer workers. This factor makes it unique in certain industries for example steel plants. Crawfordsville is a steel company which produces 1 million tons of steel annually. The product is produced continuously and in fact, this plant was designed for the specific purpose of producing a large volume of standardized goods in the most cost effective manner possible. Since the end product is very standardized, each piece of equipment performs a specific function and is rarely if ever modified for a special need.

Conclusion

The factors make each production method unique to specific companies. That is why MacDonald’s is better with mass production method and steel producing companies are better managed with a continuous production method. Batch production method works well with bakeries and that is why it is very crucial for managers when making decisions to know the exactly well-suited methods of production based on their products.

References

Davis, M., Fargher, J., & Trace, M. (1984). Production methods. Iowa Falls, Iowa: Rehabilitation Associate Training for Employed Staff, Ellsworth Community College.