Activities

Date: 2015-10-07; view: 622.

a) As a group select a simple craft product with which you are unfamiliar. Origami (the art of folding paper) might provide suitable examples. It should be possible to make the product using job, batch and flow techniques.

b) Make a realistic assessment of direct labour and material costs.

c) Divided into three groups, each using a different production method, learn how to make the product. The learning process can be judged complete when products of an acceptable saleable standard are being produced. Calculate the cost of the learning process in terms of direct material and labour for each group.

d) Continue to make the item for at least an hour.

e) Comment on the following aspects of the exercise:

1. Assuming that you want to cover all costs, including development costs, and make a profit of 10 per cent on costs, what is the break-even point?

2. Analyze the difficulties experienced by each group. This should include problems of materials and equipment, quality control and wastage rates, learning times, group attitudes to the exercise (Did some members of the group think the exercise a waste of time? How did this affect their productivity and performance?), bottlenecks experienced and reasons for them.

There is no guarantee that your experience will reflect the conventional wisdom relating to different types of production. If there is a difference can you explain it? You should remember that each individual has a unique set of skills and aptitudes and the problems you have encountered reflect those of a production manager. Why might these problems be intensified in a period of relatively full employment?

2. Visit several business organizations analyzing the production function in each according to the outline given in this chapter. Your selection of businesses should include examples of job, batch and flow production organization and, if possible, businesses operating in a variety of markets. Interview the production manager. What does she/he see as the main problems? Is it the market, people, finance or equipment that provide the biggest constraints on decision making?