ABE Level 4 DiplomaIntroduction to Business

Chapter 4Techniques of Production

ByNaeem Akram

Noor College of Business & Sciences

Techniques of ProductionThere are a number of established techniques of

production. We consider here some general themes and trends.

Automation and cyberneticsErgonomicsComputer Aided Design and ManufactureSmoothing the flow of production• Production engineering• Just-in-time techniques • Mathematical and statistical techniques • Lean production• Cell production

Techniques of ProductionIntegrating production systems with

customer needs• Car production• Financial products

Automation and cyberneticsAutomation is the use of machines and technology

to make processes run on their own without manpower.

Automation offers firms numerous advantages. Production lines can be run continuously, there is less need for inspection, manpower can be reduced and hence productivity is increased.

However, automation is costly to introduce and there are costs in training workers for the new system.

As automation has progressed there has been some conflict with workers, who see their existing skills being made redundant (surplus).

Automation and cyberneticsCybernetic is the branch of science concerned

with control systems in electronic and mechanical devices and the extent to which useful comparisons can be made between man-made and biological systems.

Cybernetics is sometimes described as the basis of automation in that it is concerned with the ways in which computers can replace the functions of the human brain (just as mechanisation is concerned with the way machines replace the functions of the human body).

So, mechanisation plus cybernetics equals automation, which has advanced into robotics.

ErgonomicsErgonomics is a science that deals with designing

and arranging things so that people can use them easily and safely.

This approach sets out to achieve the best possible relationship between workers and their environment.

As automation develops, this relationship changes with mechanisation taking over the physical energy input and cybernetic systems taking over the control functions.

Ergonomics is also important so that the right conditions of heating, light and work layout are available for the performance of the workers' functions.

Computer Aided Design and ManufactureProduction departments are making ever-growing

use of Computer Aided Design and Computer Assisted Manufacture (CAD/CAM) to develop flexible manufacturing systems.

As the name implies, this technique embraces the design, inspection and quality control of goods being produced.

It goes beyond automation by bringing into use cost-effective computers to link together design, production and quality control functions.

CAD/CAM can be extended to include the final packaging and sending out of goods to customers.

CAD/CAM offers a number of benefitsThe linking of the various production functions and

steps allows for immediate access to evaluate the state of production at a given time, thus assisting effective control.

There is less likelihood of breakdown or errors of communication between the various stages of design, production, inspection and dispatch of goods.

In major projects, integrated sophisticated computer systems have been developed with CAD/CAM as a subsystem of the network. Clients and major suppliers are linked with compatible systems which supply up-to-date information on supplies, stores, design, design changes, progress and costs. The data is monitored to identify changes to the critical path analysis or a budget overrun.

Smoothing the flow of productionA number of techniques can be used to

keep the flow of production running smoothly and avoid hold ups due to shortages of components.

Production engineering Just-in-time techniques Mathematical and statistical techniques Lean production Cell production

Production engineeringIt refers to the design and selection of

machines and the layout of production in the best way so that it progresses smoothly.

Production Engineering is a combination of manufacturing technology with management science.

A production engineer typically has a wide knowledge of engineering practices and is aware of the management challenges related to production.

Just-in-time techniquesJust-in-time (JIT) manufacturing, also known as just-

in-time production s a methodology aimed primarily at reducing flow times within production as well as response times from suppliers and to customers.

It aims to ensure continuous production through harmonization between the supply of components and their use or assembly.

Holding large stocks of components ties up capital and is costly. Just-in-time techniques set out to integrate the use of components by a manufacturer with the production of these items by suppliers, so that neither carries surplus stocks.

Mathematical and statistical techniquesIt aims to achieve a balance between

supply and usage, including exponential smoothing, which identifies long term demand trends by stripping out short-term fluctuations and economic order quantity(EOQ) which sets the reorder level for stock items so that replacements are ordered at the appropriate time.

Lean productionIt is a series of management techniques intended

to make more efficient use of limited resources, thereby limiting waste.

Techniques might include kaizen, just-in-time and benchmarking in order to maximise productivity while at the same time minimising the resources used.

Lean production requires multi-skilled workers who are committed to producing high quality at all times.

Such a production process produces to order, rather than for stock –demand "pulls" products through the system with the minimum of storage or waiting.

This has been used very effectively by car manufacturers and companies such as Dell computers.

Cell productionIt is where the production system is divided

into independent teams or "cells", each of which is responsible for a group of goods or a major part of the manufacturing process.

Teams are given devolved responsibility and control over their area. This helps to improve motivation and productivity.

Cell production is a form of team working and helps ensure worker commitment, as each cell is responsible for a complete unit of work, which Herzberg would view as part of job enrichment.