Operations Management

Producing Goods and

Services
O Learning objectives
• Students will be able to identify the meaning of
production and the different departments of an
operation/production department.
• Students will be able to interpret and solve
productivity using formulae
•
 Definitions
• Production – Process of adding value to a product
(using four factors of production – land, labour,
capital and enterprise) to satisfy customer needs
and wants.

• Productivity – How a business measures it’s

efficiency
 Assessment for learning
• 1……………………………… in a business is to take inputs and
change into output.
• Assessment for learning (moderate)
• What are the different managers in a manufacturing business?
• Assessment for learning (High)
• Challenging question
• Why R&D is important?
•
 Second objective
• Students will be able to interpret and solve
productivity using formulae
•
Calculating Productivity
Productivity means the output
Measured against the inputs used
to create it
Assessment for learning
1. The shareholders are paid a share of the profit,
assuming a profit is made. This is called
……………………
2. Differentiate production and productivity
12.09.23
Tuesday
 starter
IAM THE QUESTION--------- GUESS THE TOPIC FOR
TODAY FROM THE FOLLOWING WAYS TO
INCREASE………………….
• Training workers so they can be more
productive
• Using automation
• Introduce new technology
• Motivate employee more efficiently
 Learning objectives
• Students will be able to discuss ways to
increase productivity and benefits of
efficiency /productivity
• Students will be able to determine why
business hold inventories
 Increasing Productivity
Ways to improve productivity What is the
• Improving layout of factory so production becomes faster main problem
and more efficient
related with
• Training workers so they can be more productive
replacing
• Using automation employee
• Introduce new technology with machine-
• Motivate employee more efficiently automation?
 Benefits of increasing Productivity/ Eff

• Reduce inputs are needed to produce the same level of output.

• Less employees needed (reduce labour cost)
• Fewer workers may be needed, possible leading to lower wage cost
• Higher wage might now be paid for workers, which increase
motivation
 Assessment for learning
• 1.The cost per unit of output
• a. fixed cost
• b. variable cost
• c. marginal cost
• d. average cost
• What are the benefits of increased productivity
• Challenging question
• Explain the effects of increased productivity on employers. How are
the effects different in both employer and employees?
 Second objective
• Students will be able to determine why
business hold inventories
 Holding Stocks

Why do businesses hold stock?

• Businesses keep stocks for a variety of reasons, for
example, factories keep raw material inventory to make
sure there are enough materials for production while a shop
might hold stock to ensure that products are available to
customers.
• What are the different types of stocks in the businesses?
Too much stock
• Money wasted on storage cost
• Depreciation cost
• Shelf life (items may reach best before date before
being sold)
• Money could’ve been used on something else
Not enough stock
• Opportunity lost (profit could be made if product
sold)
Stock Control Chart

Buffer stock is inventory

to deal with sudden
customer demands for
a product or in case
supplies doesn’t get
delivered on time.
 Assessment of learning
• ……………………level is the inventory held to deal
with uncertainty in customer demand and deliveries
of supplies
• What are the different types of inventories
• Assessment for learning
• Explain the problems related with maintaining a
high level of inventory and too low level of
inventory
HOT SEAT…. ARE YOU READY?
-Every student has equal opportunity to be seated in HOT SEAT
-Students will be chosen randomly through ice cream sticks
-Every one will be seated into group of three/ pair pods
-Every student will make one question minimum and the question
will be asked to the person sitting in the hot seat.
-If Hot seat candidate answers correctly , His /Her's group will be
leveled up
-2 minutes will be given to prepare the question and 1 minute will
be given to answer.
• Write the difficult part of today’s lesson
19.09.23-20.09.23
Tuesday & Wednesday
 Lesson objectives
• Students will be able to describe the concept of
lean production and the benefits of lean
production
• Students will be able to compare different
methods of lean production
 Defining Lean Production
Lean Production is a term for techniques used by businesses to cut down
waste and increase efficiency.
Common wastes in businesses
• Overproduction – Producing too many products which then costs the
business money to keep the product in storage. (and may get
damaged/expires etc..)
• Waiting – Goods not being processed
• Transporting – Materials being moved around the factory inefficiently
• Over-processing – e.g. using advanced machine to do simple tasks
• Defects- production of faulty products which can’t be sold.
 How Lean Production reduces cost
Costs can be reduced by lean production
Benefits of lean production
• Less storage of raw materials (e..g no need for refrigeration costs,
warehouse etc…)
• Less defects in production (broken products don’t get produced)
• Better use of equipment
• Speeding up production by cutting out unnecessary tasks
• Less money tied up in stock
 Assessment for learning
• 1. A term used by business to cut down on wate and
therefore increase efficiency.
• a. cell production
• b. batch production
• c. lean production
• d. flow production
• Classify different types of waste can occur in
production?
• Explain the benefits of lean production
 Second objective
• Students will be able to compare different
methods of lean production
 Lean Production via Kaizen
Kaizen means continuous improvement by
eliminating waste:
• Workers meet regularly to discuss problems and possible
solutions
• In this way, wastage is reduced and efficiency is improved
• Factory floors are usually rearranged so that the flow of
production from one activity to the next is improved.
 Lean Production via JIT
Just-in-time (JIT) production focuses on:
• Focus on reducing the need to hold stocks of raw material or parts
that are needed (This reduces storage costs)
• Raw materials are delivered just in time by suppliers for
production
• Reliable suppliers are needed for this to work
As example, fruit might get delivered to for processing 30 minutes before
production starts, this means that the factory won’t have to spend money
on expensive refrigerators to store fruit before it gets produced and
produced into cans.
 Lean Production via cell production

Cell production is where:

• The production line is divided into separate teams of workers, each
makes a part of the finished production
• Motivation is improved due to the variety of tasks and the worker
belonging to a team
 Assessment for learning
• ……………………is a Japanese term meaning
Continuous improvement
• What do you mean by JIT?
• Which type of service providers are using JIT?
Justify your answer.
Draw a mind map on today’s topic’s sub topic
Write the difficult part of today’s topic
21.09.23- Thursday
Video Presentation Starter
https://youtu.be/CLPFG5QCx0g?si=DSLZn7BHoc0HXJW7
 Learning objectives
• Students will be able to explain three
main methods of production
• Students will be able to review the
advantages and dis advantages of job
production.
 Job production
• Job Production is where each product is
different and made to specific
instructions by the consumer. e.g. tailor
made suits, customizable
birthday/wedding cakes
 Batch production
• Batch production is similar products
are made in batches (e.g. batch of
white shirts then another batch of
green shirts are made)
 Flow production
• Flow production (Mass production)
is where large quantities of identical
products are produced on a
continuous basis
 Assessment for Learning
• 1……………………………… is where a quantity of one
product is made and then the quantity of another item
will be produced. (FIB)
• Assessment for learning
• Differentiate batch and flow production
• Assessment for learning -Challenging question
• 1. Flow production can be referred as mass production.
Why?
•
 Second objective
• Students will be able to review
the advantages and dis
advantages of job production.
 Advantages of job production
• Workers have more varied job (They
won’t become bored)
• Higher price can be charged for
product
• Product meets requirements of the
customer
 Dis advantages of job production
• Costs of production are high because
skilled labour is used
• Product takes a long time to produce
• Products are made to order so any
errors may be expensive for the
company to fix
 Assessment for Learning
• 1. ……………………where a
single product is made at a time.
• 2. List out any two advantages of
job production.
The ice cream company is using flow production for their
production process. We can tell this because this is a
company that is selling millions of units of product each
year throughout the world. This means they need a
massive production operation in order to meet that
demand.
-Alexander is utilizing job production for his work as a
hair dresser. Alexander knows that each haircut is going to
be unique and he certainly cannot mass produce haircuts
so job production makes the most sense in this instance .
• Write three things which you
have learned today
 HOMEWORK
READ AND UNDERSTAND TODAY’S
TOPICS, IN ORDER TO REINFORCE
KNOWLEDGE. QUESTIONS WILL BE
ASKED TOMORROW TO TEST YOUR
UNDERSTANDING
24.09.23
Sunday
 LEARNING OBJECTIVES
•

• 1. Students will be able to describe the

concept of flow and batch production
• 2. Students will be able to assess the
advantages and disadvantages of batch
and flow production
 Methods of Production
BATCH PRODUCTION
Batch production s similar products are made in
batches (e.g. batch of white shirts then another batch
of green shirts are made)
 Methods of Production
FLOW PRODUCTION

Flow production (Mass production) is where large

quantities of identical products are produced on a
continuous basis
 A Assessment for learning
• 1. Is where a quantity of one product is made then
a quantity of another product is made.
• a. Lean production
• b. batch production
• c. job production
• d. flow production
•
• 2. Differentiate batch and flow production?
• 3. Where is world’s largest car factory
situated in?
• Hyundai aims to produce 1 new car in every
……………… Seconds.
 SECOND OBJECTIVE
• Students will be able to assess the
advantages and disadvantages of batch
and flow production
Advantages of Batch production
• Gives more variety of jobs to workers
• Production can be easily changed from one
product to another
• Gives consumers a variety of products (e.g.
many colour shirts)
Disadvantages of Batch production
• Expensive to produce goods
• Machines have to be reset when changing
from one batch to another which slows down
production (e.g. change colour of shirts from
white to green dye)
• Warehouse space is needed to store products
Advantages of Flow production
• Goods are produced quickly and cheaply (economies of scale)
• Increased efficiency through use of machinery
• Less labour is needed (machines do the work)
• Automated production line means production can operate
overnight
Disadvantages of Flow production
• Very boring for workers (same product over and over)
• Starting costs are high (expensive machines, big factory etc…)
• If a machine breaks down the whole production line may stop
• Expensive storage costs as they are lots of products
 ASSESSMENT FOR LEARNING
1. ---------------------- is also known as mass
production.
2. List out two advantages of batch production.
Draw a mind map of today’s topic-
5mins-CLOSURE

Write the difficult part of today’s topic

Read and understand the chapter- HW

26.09.23
Tuesday
 LEARNING OBJCETIVES
• Students will be able to express the factors
which determine which method of production
to use in different situations.
• Students will be able to determine and
implement which appropriate production
method for the case study given.
Factors affecting which method of production to use
The nature of the product.
If a fairly unique product or an individual service is required
(in fact many services are individual to the customer and will
be specifically tailored to their requirements), job production
will be used. If the product can be mass produced using an
automated production line theproduction will be used.
The size of the market.
If demand is higher and more products can be sold but
not in very large quantities, batch production will be used. The
product will be produced in a certain quantity to meet the
particular order. Small local markets or niche markets will be
served by businesses using job or batch production.
International markets are served by businesses using flow
production.
Factors affecting which method of production to use
» The nature of demand.
If there is a large and fairly steady demand for the product, such as
soap powder, it becomes economical to set up a production line
and continuously produce the product (flow production). If demand
is less frequent, such as for furniture, then production may be more
likely to be job or batch production.
» The size of the business.
If the business is small and does not have the access
to large amounts of capital then it will not produce on a large scale
using automated production lines. Only large businesses can
operate on this scale. Small businesses are more likely to use job
or batch production methods
ASSESSMENT FOR LEARNING
1.Replacing machineries instead of human is
known as……………………….
2.List out the factors which determine which
method of production to use in different
situations.
3.If there is a large and fairly steady demand for
the product such as Soap powder, what kind
of production method would be suitable?
SECOND OBJECTIVE
• Students will be able to determine
and implement which appropriate
production method for the case study
given.
Discussion of answers
5mins-CLOSURE

Write the difficult part of today’s topic

Read and understand the chapter- HW

28.09.23
Thursday
STARTER
 LEARNING OBJECTIVES
• Students will be able to explain how
technology has changed production
methods
• Students will be able to assess the
positive and negative impacts of
technology
 How technology has changed production
methods

Automation Mechanisation CAD CAM CIM

 How technology has changed production
Methods

 Automation is where the equipment used in the

factory is controlled by a computer to carry out
mechanical processes, such as paint-spraying
on a car assembly line. The production line will
consist mainly of machines and only a few
people will be needed to ensure that everything
proceeds smoothly.
» Mechanisation is where the production is done by
machines but operated by people, for example, a printing
press. Robots are machines that are programmed to do
tasks, and are particularly useful for unpleasant,
dangerous and difficult jobs. They are quick, very
accurate and work non-stop, 24 hours a day.

» CAD (computer-aided design) is computer software that

draws items being designed more quickly and allows them
to be rotated to see the item from
all sides instead of having to draw it several times. It is
used to design new products or to re-style existing
products. It is particularly useful for detailed
technical drawings
» CAM (computer-aided manufacture) is where
computers monitor the production
process and control machines or robots on the factory
floor. For example, on the production line of a car plant
computers will control the robots that spotweld the car
body together or the robots that spray paint the car.

» CIM (computer-integrated manufacturing) is the total

integration of computeraided design (CAD) and
computer-aided manufacturing (CAM). The computers
that design the products are linked directly to the
computers that aid the
manufacturing process.
Technology has also improved productivity in shops with
electronic payment methods and scanners at the tills.

» EPOS (electronic point of sale). This is used at checkouts

where the operator scans the barcode of each item individually.
The price and description of the item is displayed on the checkout
monitor and printed on the till receipt. The inventory record is
automatically changed to show one item has been sold and if
inventory is low (at the reorder point) then more inventory can be
automatically ordered
Technology has also improved productivity in shops with
electronic payment methods and scanners at the tills.

» EFTPOS (electronic funds transfer at point of sale). This is

where the electronic cash register is connected to the retailer’s
main computer and also to banks over a wide area computer
network. The shopper’s card will be swiped at the till and the bank
information will automatically be read from the card. The money
will be directly debited from the customer’s account after they
have signed for the debit to be made or have entered their PIN
(personal identification number). A receipt will be printed as
confirmation that the payment has gone out of the customer’s
account.
» Contactless payment is increasingly being used in many countries. It is a
fast, easy and secure way to pay for purchases that are less than a small
amount, for example, in the UK this is £30 or less. Sometimes larger
transactions can be made but then a passcode, fingerprint or some other way
is used to ensure this is a correct transaction. Pre-paid, debit, charge and
credit cards, key fobs, wearable devices such as watches and wristbands, and
mobile devices, such as smartphones and tablets, can be used to make
contactless payments. It works by the contactless device having an antenna.
When it is touched against a contactless terminal, it securely transmits
information about the purchase
 SECOND OBJECTIVE
• Students will be able to assess the
positive and negative impacts of
technology
 LEARNING FOR ASSESSMENT
• 1. Replacing machineries instead of human is known
as……………………….
• Assessment for learning (moderate)
• List out the technological innovations in production
methods
• 1.Is automation always good for businesses?
•
•
Group summary time - 5mins-
CLOSURE

Write three things you have learnt

today

Read and understand the chapter- HW