The advantage of batch production over job production is that more items at a time can be produced. This reduces the cost per unit because the business is able to spread the fixed costs over more units.
The disadvantage of this form of production is that it is less flexible than job production and time is lost when changing from one batch to the next.
FLOW PRODUCTION
When using Flow (Mass) Production each item moves from one stage of the production process straight to the next. For a continuous process to be the most suitable production method, items must be produced in high volumes and be identical. The flow from each stage of production to the next is usually by conveyor belt such as with the production of chocolate or the bottling of soft drinks.
Flow production is highly capital intensive due to the amount of machinery and computer controlled equipment used. The advantage of using flow production is that the high initial costs can be spread over a much higher number of units therefore achieving economies of scale. The downside of this type of production is that although it is efficient, it is not very flexible. This means that demand for the product must remain high in order for SSD to remain profitable or the company must change the production line for the production of a different product.
PRODUCTION PROCESS MOST SUITABLE FOR SSD
Due to the exact type of product that SSD will be producing for the French contract and also taking into account the market in which SSD operates, I feel the most suitable production process to adopt is Flow.
By introducing Flow production, the company will bring itself inline with competitors and in the long run increase its profitability. This type of production will allow SSD to operate much more efficiently whilst maintaining competitiveness and keeping labour costs to a minimum.
Introducing Flow production will mean that the production process will need to become automated. This will have effects on the way the product is designed, manufactured and quality tested.
RESEARCH & DEVELOPMENT (R&D)
The R&D department at SSD will be required to undertake the task of designing the new automated production process. They will need to plan exactly how the switches for the French contract will be made and will need to liaise with the suppliers of the new machinery to ensure that design targets are met.
Not only does the design of the product and machinery need to be considered but also the manufacturing process needs to be thought through clearly so that every machine and activity has a logical place in the production system. Failure to correctly design the production line itself will lose time and money for SSD.
The R&D department need to bring together a team of experienced designers and also a specialist in automated production lines so that ideas can be put forward to create the best possible design solution. Careful planning of the project will ensure that design requirements are met on time and are cost effective. The management of the whole project will need to consider all the different factors such as factory floor space, staff training, quality control, time management and design and bring them all together into a strategic plan.
The strategic plan will show how the project must be conducted in order to be completed in the shortest possible time. It will be necessary for the design team to plan the order in which activities must be undertaken during the production process. In order for the production process to become automated, computer-aided-design and computer-aided-manufacturing will need to be introduced.
INTRODUCTION OF MODERN TECHNOLOGY
Through the introduction of computers as discussed above, the construction and assembly of parts will become automated, giving accuracy and consistency. The design and manufacture will also be carried out using computers.
COMPUTER-AIDED-DESIGN (CAD)
The introduction of computers to the design department would mean that designs would no longer need to be drawn by hand. Using CAD, designer engineers work at computer screens where they can draft and visualise the item they are designing.
Using CAD, two and three dimensional designs can be quickly and easily modified if needed. CAD’s ability to simulate a products end performance also decreases the amount of time taken to complete the design and testing process which can take up a large proportion of the overall manufacturing time. By using CAD SSD will also be able to make design changes quickly and cheaply.
COMPUTER-AIDED-MANUFACTURE (CAM)
An extension of CAD, CAM is capable of looking at a computer design and determining the quantities of material required and the instructions to produce it. CAM does not mean that the whole manufacturing process is computerised, there is still a need for production workers who would be trained in the use of the machinery.
By using both CAD and CAM, SSD would substantially cut the amount of time taken to design and manufacture the product.
AUTOMATED PRODUCTION LINE
The automation of the production line will increase the amount of factory floor space required in order to accommodate the new machinery. Within a fully automated production line, the machine tools, robots and conveyor belts are linked to a main computer which controls the process as well as reporting the progress of each item through the system. Because machine tools and robots produce work of a consistent standard, quality checks would only need to be carried out randomly.
QUALITY CONTROL & MANAGEMENT
Quality control is of great importance to the overall success of a business. In the case of the French contract, SSD’s performance will be measured against their ability to meet the requirements of the contract. Therefore, it is imperative to future business that the company builds itself a reputation for good quality. The are also a number of other benefits to the business such as:
- Increased competitiveness
- Increased customer satisfaction
- Less waste
- Cost savings
- Fewer mistakes
- Increased efficiency
- Better motivation
- Increased profits
The best way to manage quality is by detecting problems that may arise and by preventing them. There are a number of ways this can be done and also a number of techniques that can be incorporated into the manufacturing process to improve on the overall quality.
TOTAL QUALITY MANAGEMENT (TQM)
TQM considers quality in every part of the business. The quality of a product is improved by the careful analysis of the processes and materials being used and is a way of looking at the issues behind quality. TQM involves commitment from staff within all departments of the business as opposed to just the quality department.
The aim of TQM is to achieve quality the first time round therefore, this is the number one priority. An important part of TQM is feedback from staff that are perhaps able to see more clearly than quality checkers what is required within their role to improve the quality of the product or the production process.
CONTINUOUS IMPROVEMENT (KAIZEN)
By adopting a system of continuous improvement, the business is making positive changes on a continual basis. The Japanese call this method Kaizen.
The Kaizen approach to quality management sees each production worker as an expert and each staff member is responsible for doing his job and finding ways to improve it. Production staff at SSD are the most likely to know the causes of production problems and Kaizan recognises that it is the staff that hold the solutions to these problems
Team working is vital to the process of continuous improvement and employees meet in groups with staff working in similar roles to put forward their ideas. These groups are called ‘quality circles’.
QUALITY CIRCLES
As previously mentioned a ‘quality circle’ is a group of staff who meet together regularly to identify problems and recommend changes that could be implemented to improve the working process.
Quality Circles are highly effective at identifying quality issues as they take advantage of the knowledge of the production staff. This also has a positive effect on staff morale as they become more involved. In order for TQM and the Kaizen approach to be effective it is essential that staff are encouraged to take pride in their work.
Within SSD, quality circles would be made up of staff working within the production department and also within the design department. These groups would then be able to identify problems before they arose and make improvements based on their findings.
QUALITY ACCREDITATION
If SSD wanted to seek confirmation that their procedures where of a high quality and also wanted a sign of assurance to future clients, they could apply for professional accreditation. BS EN ISO 9000 certification is available to companies who have a documented quality assurance system in place. Once a company has received quality accreditation, they are inspected regularly to ensure they are maintaining quality standards as set out in the documentation. The quality system must be effective and also be followed by all staff members in order for the company to retain accreditation.
There are also a number of other professionally recognised quality assurance bodies which are relevant for businesses operating in different markets:
- The British Electrotechnical Approvals Board
- The Consumers Association
- The Association of British Travel Agents
- The Wool Marketing Board
- The British Toy and Hobby Association
______________IMPLICATIONS ON OTHER FACTORS________________
The introduction of different methods of productions such as CAD & CAM and also the revision of the quality control procedures within SSD will have knock-on effects throughout the company. The factors of production; land, labour, capital and enterprise will need to be planned and managed if the project is to succeed.
Once a detailed project management plan has been drawn up for the changes being made to the production function of SSD, it will be necessary for the above factors to be considered separately and in more detail.
LAND
The need to expand the company’s factory floor space in order to accommodate the new equipment required for the French contract is perhaps the first point to consider. The capacity of SSD (the amount it can produce) will depend on the quantity of buildings, machinery and labour it has available. In order to fully utilise its capacity, SSD must make full use of the space it has available.
Once the layout and design of the new automated production has been decided, the available space will need to be acquired ready for its installation. It is important to the safety of employees that the space is used in accordance with Health and Safety recommendations due to the type of machinery that will be in use.
LABOUR
The introduction of the new production process and quality control techniques as discussed earlier in this report will change the jobs specifications of staff working within each department of the company.
Once the new production process has been designed it will be possible to analyse the design and decide what staff will be required to complete the activities required. Production line workers will need to be trained in the use of the new machinery and also in the technique of total quality management. I recommend that SSD has training days for staff at all levels of the company with the aim of motivating staff to identify quality issues for themselves and also introducing the idea of working in ’quality circles’. Once all staff have been trained in these procedures, it will take time before they become used to this style of working and that the ’quality circles’ become effective at addressing quality issues.
It is important to ensure staff are not daunted by the adoption of a new computerised process and that each person knows clearly what his role will be within the new set-up. Staff within the Design department will need to have intensive training to ensure they understand how to use CAD and CAM to enable them to make full use of the design software. As staff become more experienced in their new roles, SSD will start to operate much more efficiently than before and will have greatly increased the amount it is capable of producing in a given period of time.
CAPITAL
The computerisation of the production process at SSD will have a high initial cost. If SSD is to recoup the money invested in computerisation and create a profit for its shareholders in the minimum amount of time, the company must endeavour to maximise its output.
To fully utilise its capacity SSD must make full use of the buildings, machinery and labour available. The new machinery is more cost effective due to its superior efficiency however, it is important for SSD to understand the relationship between fixed costs and capacity utilisation.
The price of land, buildings, labour, training and research are all fixed costs in relation to SSD’s output. This means that by using capital reserves to invest in and expand the business in this way, there will be a pressure on SSD to quickly make back the invested capital. In order to achieve this target, utilisation must be high. When utilisation is high, the level of output increases and fixed costs are spread over more units thus increasing profit margins.
ENTERPRISE
By adopting the technique of total quality management, much more input will be fed to SSD by the staff. This is an excellent way for new ideas to come forward and by rewarding staff for innovative ideas, staff become highly motivated and continuously seek to input new and useful ideas. By encouraging staff to work in this way, putting forward even small and seemingly insignificant recommendations SSD will find that gradually working processes and staff motivation will improve.
As mentioned earlier in relation to ’quality circles’, the staff are each experts in the area that they work. It is sensible therefore to look to these staff when trying to find ways of improving the product and process. When staff have pride in the work they are carrying out and their input is being recognised, motivation will be high.
________________________CONCLUSIONS_________________________
The introduction of a Flow production process using an automated production line and computerised design and manufacture software, SSD will be able to meet the deadlines and quality requirements of the French contract. Following this, SSD will be in a position to compete for other similar contracts in the future and will be able to generate considerable new business.
__________________________RECOMMENDATIONS__________________
I recommend that SSD automate the production line and introduce CAD & CAM to the design departments as discussed in this report.
It would be beneficial to SSD to adopt a TQM system of working as this will greatly improve the product and working process.
___________________________BIBLIOGRAPHY______________________
- Lecture notes and handouts provided within business structure lesson
- Marcouse, Gillespie, Martin, Surridge, Wall - Business Studies for AS - Hodder & Stroughton - May 2001
- Smith & Vigor - People in Organisations - Oxford University Press - 1991
