Operations management

Table of Contents

1. Topic pack - Operations management - introduction
2. Operations Management (OM) - Introduction
3. 5.1 Production methods notes
   1. Production methods
   2. Job production
   3. Batch production
   4. Flow/mass production
   5. Halo Custom Guitars
   6. Summary of production methods
   7. Advantages and disadvantages of production methods
   8. Continuous production
   9. Cost structure of firms
   10. Cell production and teamwork
   11. Cell production - examples and illustrations
   12. Changing the production system
   13. Selecting the most appropriate method of production
   14. Combining methods of production
4. 5.1 Production methods - questions
5. 5.2 Costs and revenues - notes
6. 5.2 Costs and revenues - questions
7. 5.3 Break-even analysis - notes
8. 5.3 Break-even analysis - questions
9. 5.3 Break-even analysis - simulations and activities
10. 5.4 Quality assurance - notes
11. 5.4 Quality assurance - questions and activities
12. 5.5 Location - notes
13. Innovation - notes (HL only)
14. 5.6 Innovation - questions
15. 5.7 Production planning - notes
16. 5.7 Production planning - questions
17. 5.8 Project management - notes (HL only)
18. 5.8 Project management - questions (HL only)
19. Print View

Job production

Job production is associated with bespoke production, where each product is made individually and to order; customised to the buyer's specification, such as buildings, paintings, designer clothes, meals and haircuts. Production is a highly skilled process and goods may be handmade and labour intensive. Production costs are usually high, particularly the labour element and, as a consequence, premium prices can be charged.

Job production covers both small-scale, low technology projects as well as large, complex projects involving high technology. Products are one-off and often unique, such as portraits or tailor made suits, but may be produced singly to a repeated design, such as aircraft, luxury sports cars and yachts.

Job production is well suited to smaller firms as there are few opportunities for economies of scale and the market is less price-sensitive. However, large-scale projects may satisfy the objectives of larger firms in terms of revenues and profit levels; examples of which include major one-off construction projects. At both ends of the scale, job production is appropriate for a business which focuses on meeting customer needs.

The management of job production may be difficult, as the processes differ from job to job. Management of larger products need to place emphasis on cost control and cash flow because payments for products made to order, such as yachts and buildings, may not be made until completion and/or delivery. There may also be penalties for late delivery of large products, so management need to monitor progress (we cover this in more detail in section 5.8 on project management).