UNIT 7: PRODUCTION

I - LEAD - IN

1. Production and quality managers have duties:

- Compile and analyze information regarding the company's goods or services.
- Understand regional, provincial, and federal laws that apply to the sector.
- Be able to write clear, informative reports that highlight the main findings.
- Have the ability to discuss quality standards and how to accomplish them with
other employees.
2. Production and operation managers require skills:
- To convey their findings to the production managers and corporate leadership.
- Employees should receive quality assurance training for all aspects of the
production process.
- To examine goods or services to make sure they adhere to quality standards.
- Organize meetings with production or service management to learn more about
the policies and practices followed by the business.
- Should possess superior business management skills and manufacturing
management experience.
- I think that I need to learn more so that I can improve these skills for me
3. I pretty like to work in this field because to me, it is so interesting and I will
have a chance to broaden my knowledge about products and how to produce it
correctly.
4. The objectives of production department are to produce a product, on schedule
and at minimum cost. It also focuses on quality and product reliability,
producing the maximum possible volume of output and so on.

II - READING 1

A - SUMMARY

Manufacturing companies require 3 main functions: finance, production or operations

and marketing. The objectives of production departments are to produce a product on
schedule and at minimum cost. Production and operation management not only
involves production plants or factories, processes, parts of a product but also the
people in the company. All manufacturing companies have to decide how much
research and development to do. Especially, decisions about what products to make or
what services to offer have to take into account a company’s operational capacity,
capital, labour and equipment requirements.

B - COMPREHENSION

EX I - 1 T, 2 F, 3 F, 4 F, 5 T

EX II - 1f, 2g, 3a, 4c, 5d, 6b, 7e, 8h

EX III - 1e, 2d, 3 f, 4g, 5h, 6a, 7b, 8c

III - READING 2

A - SUMMARY

Lean production covers a variety of techniques used by businesses to cut down on

waste of resources, including time and therefore increase efficiency. There are 7 types
of waste in production including: overproduction, waiting, transportation, unnecessary
inventory, motion, over-processing and defects. Lean production can be achieved by
using following methods. Firstly, it is Kaizen which means “continuous improvement”
in Japanese and its focus is to eliminate the production waste. The second method is
JIT (just in time) which focuses on reducing inventories of raw materials, work-in-
progress and inventories of finished products. The third one is cell production in
which the production line is divided into separate and self-contained units.

B - COMPREHENSION

I-

1. improvement 2. culture 3. process

4. marketplace 5. competitors 6. metrics
7. cycle 8. resistance

1. storage 2. production run 3. obsolescence

4. inventory 5. theft 6. delivery
7. opportunity cost 8. discounts 9. shortages

II -

1. storage 2. delivery 3. shortages

4. discounts 5. production run 6. inventory
7. opportunity cost 8. obsolescence 9. theft

1f, 2b, 3g, 4e, 5d, 6c, 7a

 PROS CONS
Job ● High quality product ● Production costs likely to be high
production ● Can customise orders ● Production time may be longer
● Workers involved in entire ● Investment in machinery may be
production process from start to higher as specialist equipment may be
finish needed
Batch ● Making many small batches can be
● Allows flexible production
production expensive
● Inventories of part-finished
● If production runs are different there
goods can be stored and
may be additional costs and delays in
completed later
preparing equipment
Flow ● Economies of scale can be
production achieved as cost per unit will be
● Standardised product produced
low
● High initial set-up costs of automated
● Automated assembly lines save
assembly lines
time and money
● Workers find work repetitive and
● Quality systems can be built
boring
into the production at each
stage

IV - CASE STUDY

a. The production manager wants to introduce new production to:

- reduce production time
- reduce the number of workers
b. - Batch production enables clothes to be created stage by stage in bulk (‘a
batch’).Generalist equipment is used to produce quantities of a clothes to meet
a specific demand. The production process is stopped on the completion of
each batch. A new batch is then produced using the same generalist equipment
and workforce.The workforce is usually divided into a group designated to
work on a particular stage of the process.

- Sita Ltd uses batch production instead of flow production because this method
Allows flexible production of many types of babies clothes. Also, inventories
of part-finished goods can be stored and completed later. Meanwhile, flow
production limits the styles of clothes, and it requires high initial set-up costs of
automated assembly lines and workers find work repetitive and boring.

V - VOCABULARY

Exercise 1: 1. lead time (also called cycle time) 2. purchasing power 3. optimum
capacity 4. assembly line (also called a production line) 5. finished goods 6. product
recall 7. offshore production 8. planned obsolescence 9. supply chain 10. zero defects
11. resource allocation 12. raw materials 13. manufacturing costs 14. random
sampling 15. capacity planning

Exercise 2: 1 steel making 2 an automobile plant 3 clothing manufacture 4 aircraft

manufacture 5. construction of a building

Exercise 3: 1D 2I 3H 4A 5E 6D 7C 8B 9G

VI - UNIT REVIEW

1. What is production and operation management?(KN)

Operation management: produce a specific product or service, on schedule, at

minimum cost (criteria: concentrating on quality and product reliability, producing the
maximum possible volume of output, fully utilizing the plant or the workforce,
reducing lead time, generating the maximum return on assets, ensuring flexibility for
product or volume changes)

Involves production plants and factories or service branches, and the equipment in
them, parts (raw materials or supplies), processes ( the steps by which production or
services are carried out), planning and controlling system( the procedures used by
management to operate and monitor the system)

Involves people - the personnel or human resources

2, What is lean production? How can lean production be achieved

Lean production can be achieved by using the following methods

- Kaizen (continuous improvement): focusing on the elimination of

waste, The improvement does not come from the investing in new
technology or equipment but through the ideas of the workers
themselves → Small Groups of workers meet regularly to discuss the
problems and possible solutions because no one knows the problems that
exist better than workers. Kaizen eliminates waste, inventory, reduces
the amount of time taken for workers to walk between jobs so that they
eliminate unnecessary movements.

- JIT: production method focusing on reducing and eliminating the need to

hold inventories of raw materials or components and on reducing work in
progress and inventories off the finished product. The raw materials and
components are delivered just in time to be used in the production process,
the making of any parts is taken just in time to be used in the next stage of
production and the finished product is made just in time to be delivered to
the customers
 → reduce the costs of holding inventory, as no raw materials and
components are ordered to keep in the warehouse just in case they are
needed

→ Warehouse space is not needed

→ the finished product is sold quickly → money come back to the business
quickly

→ need very reliable suppliers and an efficient system of ordering raw

materials or components

- Cell production: the production line is divided into separate, self-

contained units(cells), each making an identifiable parts of product →
improve the morale of the employees and makes them work harder→
the employees feel valued and are less likely to strike orr cause disruption

3, What is job production, batch production and flow production

- Job production: This is where products are made specially to order

- Batch production: This is where similar products are made in blocks or

batches.

- Flow production: This is when large quantities of a product are produced

in a continuous process.

4, What are the benefits and limitations of different production methods (I had done in
the section of COMPREHENSION above)

GAP FILLING
1. The objectives of production department are to produce a product, on schedule
and ………. . It also focuses on quality and product reliability, producing the
maximum possible volume of output and so on.
2. Lean production covers a variety of techniques used by businesses to ……….
waste of resources, including time and therefore increase efficiency.
3. The second method is JIT (just in time) which focuses on reducing inventories
of raw materials, work-in-progress and inventories of …….. .
4. Kaizen eliminates waste, inventory, reduces the amount of ….. taken for
workers to walk between jobs so that they eliminate unnecessary movements.
5. Cell production: the production line is divided into separate, ……. units(cells),
each making an identifiable parts of product.