🏭 Production & Operations
🔹 What is Production?
Production is the process of converting inputs into outputs (goods
or services) that satisfy customer needs.
🔹 Factors of Production
Land/Raw Materials – Natural resources (e.g. minerals,
wood).
Labour – Human effort, skills, experience, and knowledge.
Capital – Financial and physical resources (e.g. tools,
machinery).
Entrepreneurship – Innovation, vision, risk-taking.
Information Technology – Systems that improve production
(e.g. online banking, machinery).
🔹 Tasks of Production
Input – Collecting raw materials, capital, information, and
ensuring quality control.
Transformation – Organizing systems and resources to
convert input into output.
Output – Goods/services are produced to meet quality
standards.
Acceptance – Final products are sold to customers and
accepted through marketing efforts.
🔹 Factory Location Considerations
Proximity to resources and markets
Labour availability and skills
Transport access
Room for expansion
Services like water, electricity, internet
Site costs, regional regulations, grants
🔹 Factory Layout
🏭 Factory Layout – Key Concepts
🔹 Definition:
Factory layout refers to the arrangement of machines, work
areas, equipment, and staff within a production facility to
ensure efficient workflow and production.
🔹 Importance of Factory Layout:
Improves efficiency by minimizing unnecessary movement.
Reduces production time and costs.
Enhances safety and worker satisfaction.
Makes supervision and quality control easier.
Optimizes space usage.
🔹 COIDA (Compensation for Occupational Injuries and Diseases
Act)
Protects employees injured at work or who develop work-related
diseases.
Covers medical expenses, income loss, rehabilitation.
Employers must report injuries, keep records, and ensure
compensation claims are submitted.
⚙️Production Systems
🔹 Definition
A production system describes the full process of turning inputs
into outputs. It must be suitable for the type of product and
consider labour intensity.
🔹 Types of Production Systems
1. Mass Production (Continuous Production)
Produces standardized items in large quantities.
Stable demand is essential.
Uses highly specialized machines (expensive, high capital).
Automation via conveyor belts and assembly lines.
Low variety, high speed.
Must avoid bottlenecks (when one step is slower than the
rest).
2. Jobbing Production
Produces one item at a time before starting the next.
Highly customized or unique orders.
Requires skilled labour and versatile tools.
High cost, long lead times, low volume.
Examples: custom furniture, artisan crafts, prototypes.
3. Batch Production
Items are made in batches – each batch completes one
stage before moving on.
Balances efficiency and flexibility.
Ideal for seasonal items or changing demand.
Helps with quality control.
Examples: baked goods, medicines, clothing, paints.
