Definition Definition

Production Methods : Definition, Types, Factors, Quality and Cost Impact

What is Production Methods?

Production methods are the systematic processes, techniques, and procedures used to create goods and services. 

These methods encompass various activities, from design and planning to manufacturing or service delivery. Essentially, they are the blueprints that guide how raw materials and resources are transformed into finished products or services.

Scope of Production Methods

The scope of production methods is vast, covering everything from traditional craftsmanship to cutting-edge technologies. It includes manufacturing processes like casting, forging, and 3D printing, as well as service-oriented techniques such as project management and software development. 

Understanding the diversity of production methods is essential for optimizing efficiency, quality, and sustainability in various industries.

Importance of Understanding Production Methods

Understanding production methods is crucial for several reasons. It primarily enables us to understand the complexity and craftsmanship that went into the creation of the items we depend on. 

Additionally, it gives people and companies the power to decide on their manufacturing methods with knowledge. Whether you're a manufacturer striving for efficiency or a consumer looking for eco-friendly choices, knowledge about production methods is invaluable.

Link to Various Industries and Sectors

Production methods are not confined to a single industry; they transcend boundaries and impact various sectors. 

From heavy machinery manufacturing in the automotive industry to precision techniques in the aerospace sector, production methods are versatile tools that find applications in fields as diverse as healthcare, fashion, and agriculture.

Types of Production Methods

All products cannot be made the same way: the nature of the product determines how it will be produced. Traditionally, these methods have been classified as below:

  1. Analytic Process
  2. Synthetic Process
    • The Fabrication
    • The Assembly
  3. Continuous Process
  4. Intermittent Process

A. Analytic Process

In the analytic process, raw materials are broken down to form new products. An example is petroleum refining: crude oil is processed and converted into various end products.

B. Synthetic Process

The synthetic process is the opposite of the analytic approach because materials are combined instead of separated to form a certain product. 

Aluminum production is an example of the synthetic process because processed bauxite is combined with lime and ash. The synthetic process has two variations: the fabrication and the assembly processes.

1. The Fabrication

The fabrication process is a variation of synthetic production in which new products are created from those already manufactured by changing their form.

Calvin Klein jeans, for example, are made from cloth, buttons, zippers, trim, and thread joined together according to a pattern.

2.  The Assembly

The assembly process is the variation of synthetic production in which materials or parts are combined without substantial changes. Beechcraft airplanes are made almost entirely by the assembly process. 

The firm takes Avco Lycoming or Continental engines and ready-made instruments, landing gear, propellers, and other components from outside companies and puts the entire airplane together.

C. Continuous Process

The continuous process is a production method that uses the same machinery to perform the same operations repeatedly over relatively long periods. 

This process makes synthetic fibres, chemicals, Bic pens, and disposable razors. Machinery runs for months at a time with few, if any changes in methods or equipment. A continuous process is used for making cars.

D. Intermittent Process

A firm that uses an intermittent process is engaged in a production process that shuts down equipment periodically and readjusts it to make a slightly different product; production does not run the same day in and day out. 

The intermittent process is used by job shops that make products according to customers' specifications. Custom gunsmiths and guitar-makers use an intermittent process: no two units are identical. 

Wood, glue, and metal are harmonized into a custom guitar by skilled craftsman using the intermittent production process.

Choosing Production Processes to Product and Market Demands

Management’s choice of a continuous or intermittent process is governed by the nature of the product and the market the product is meant for. Custom-made products must be manufactured by intermittent process because manufacturing must stop with the completion of each unit.

Mass production of identical units lends itself to a continuous process, but even some mass-produced items have elements of an intermittent process, for instance, but must make changes when they print another book.

Factors Influencing Production Process Selection

Now, let's delve into the key factors influencing a company's decision to opt for a continuous or intermittent production process.

- Factors Influencing Analytic Process

These processes are commonly found in industries where precision and accuracy are paramount, such as pharmaceuticals, chemical manufacturing, and laboratory testing.

1. Complexity of the Final Product

Analytic processes are preferred when the end product demands high purity or precision. For instance, in pharmaceuticals, the synthesis of specific drugs requires meticulous control over each component's composition.

2. Quality Control Requirements

Industries with stringent quality control standards, like food processing or electronics manufacturing, often opt for analytic processes to ensure product consistency and safety.

- Factors Influencing Synthetic Process

This approach is prevalent in industries where customization and adaptability are key, such as chemical synthesis, textile production, and some aspects of food manufacturing.

1. Product Variability

When a company produces a range of products with varying specifications, synthetic processes offer the flexibility needed to adapt to changing requirements.

2. Customization Needs

Industries catering to niche markets or offering personalized products, like custom clothing or specialty chemicals, benefit from synthetic processes that accommodate unique customer demands.

- Factors Influencing Continuous Process

This method is characterized by high automation, consistent output, and economies of scale, making it suitable for mass production.

1. Scale of Production

Continuous processes are often the most cost-effective choice when a company aims to produce large quantities of uniform products, such as automotive components or beverages.

2. Stable Market Demand

Industries operating in markets with stable and predictable demand patterns can leverage continuous processes to maintain an efficient production flow and minimize costs.

- Factors Influencing Intermittent Process

This approach provides flexibility and is ideal for custom-made or unique products.

1. Customization Requirements

Products that require individualized attention, like bespoke furniture or artisanal chocolates, are best produced through intermittent processes that allow for tailored craftsmanship.

2. Fluctuating Market Demand

An intermittent production process is often preferred in markets characterized by fluctuating demand. 

This adaptability allows manufacturers to adjust production levels according to market requirements. For instance, this approach benefits seasonal products like winter coats or holiday-themed merchandise.

Balancing Act: The Hybrid Approach

Sometimes, the line between continuous and intermittent production blurs, leading to a hybrid approach. This scenario is common in industries where certain production phases require flexibility while others favour continuity.

For instance, a book printing company primarily follows a continuous process but must momentarily switch to intermittent production when changing the content for each new book. This hybrid model ensures efficient production of identical books while accommodating customization for different titles.

Impact on Product Quality and Cost

The choice of production process is not merely a matter of efficiency; it profoundly affects both the quality of the product and its cost. 

Understanding the intricate relationship between production processes and these crucial factors is essential for businesses seeking to thrive in a competitive market.

Product Quality

- Continuous Production and Quality

Continuous production processes often lead to products of consistent quality. This is because these processes are highly automated and tightly controlled, reducing the potential for human errors.

For example, in industries like automobile manufacturing, where precision is paramount, continuous processes result in cars that meet strict quality standards. Maintaining consistent quality over time can enhance a company's reputation and customer trust.

- Intermittent Production and Quality

Intermittent production processes, while offering flexibility, can be more challenging to control regarding quality. Each unit or batch may vary slightly due to the start-and-stop nature of production. 

However, for custom-made products where individualization is key, intermittent processes are indispensable. In this case, the quality relies on meticulous craftsmanship and quality control measures.

Cost Considerations

- Continuous Production and Cost

Continuous production processes often benefit from economies of scale. When producing large quantities of identical products, unit costs tend to decrease, leading to lower production costs per item. 

This cost-effectiveness is a big plus in marketplaces with lots of competition. However, the initial setup costs for automation and machinery can be substantial.

- Intermittent Production and Cost

Intermittent production processes are typically more labor-intensive, as each unit may require individual attention and customization. 

Higher labor expenses may result from this, but it may also lessen the need for expensive equipment and automation. For companies producing custom or low-volume products, this approach can be cost-effective.

Balancing Act

In practice, businesses often find themselves navigating a delicate balance between product quality and cost. The choice of production process should align with the company's overarching strategy and the demands of its target market.

Hybrid Approach

To balance quality and cost, some businesses choose a hybrid strategy that combines continuous and intermittent processes. For instance, a bakery may use continuous production for its best-selling bread while employing intermittent processes for specialty cakes that require customization.

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