5.2 Production
- Syllabus
- 2026
- Topic
- 5.2
- Level
- —
Learning objectives
5.2.1Production processesProduction processes:• different types:- job- batch- flow• labour and capital intensive production• the impact of different types of production• calculation of productivity and the impact of productivity improvements.5.2.2Principles of lean productionPrinciples of lean production:• just-in-time (JIT)• Kaizen• the importance of using resources effectively.5.2.3Impact of technology in productionImpact of technology in production:• use of robotics• balancing cost, productivity, quality and flexibility.
Match the production process to volume and variety
A production process converts inputs into goods or services. Choose a process by required volume, variety/customisation, demand certainty, skills, capital, cost, speed and quality—not by assuming the fastest method is always best.
| Process | Pattern | Advantages | Limitations |
|---|---|---|---|
| job | one unique/customised output at a time | exact customer fit, flexibility, skilled work | slow, high unit cost, difficult to standardise |
| batch | a quantity of one design, then changeover to another | variety with some scale; limits exposure to uncertain demand | setup/changeover time, work-in-progress and uneven flow |
| flow | continuous sequence of standardised output | high volume, speed, consistent quality and low unit cost when capacity is used | high setup cost, low flexibility, breakdown disruption and unsold-output risk |
| Emphasis | Meaning | Best supported by | Trade-off |
|---|---|---|---|
| labour intensive | a larger role for human effort/skill | customised service, judgement, craft or flexible tasks | wage/training cost and variable consistency, but adaptability |
| capital intensive | a larger role for machinery/technology | high-volume, repetitive or precision work | high finance/setup/maintenance cost, but speed and consistency |
productivity=output/inputused
If 8 workers make 480 units per day, labour productivity is 480 ÷ 8 = 60 units per worker per day. If the same 8 workers make 560 units, productivity rises to 70 units per worker—a 10-unit or 16.7% improvement.
Higher productivity can reduce labour cost per unit, raise capacity and improve competitiveness. It may come from training, layout, motivation, technology or fewer errors, but judge quality, safety, employee effects, investment cost and whether extra output can be sold.
Productivity is a rate of output per stated input and period; it is not total output, profit or productive capacity. A business can be capital intensive and still use labour, and job/batch/flow can coexist in different operations.
Remove waste without weakening the production system
Lean production seeks greater customer value from fewer wasted resources—such as excess inventory, waiting, defects, unnecessary movement, overproduction, energy or materials—while protecting the quality and continuity customers require.
| Principle | Mechanism | Benefit | Dependency/risk |
|---|---|---|---|
| just-in-time (JIT) | inputs arrive and output is produced close to when needed, with little buffer stock | less storage, tied-up cash, damage, obsolescence and excess inventory | reliable suppliers, accurate demand/data, consistent quality and transport; disruption can halt production |
| Kaizen | employees make continuous small improvements to methods and waste | uses first-hand knowledge; can raise quality, productivity and involvement | needs time, trust, training, measurement and adoption; ideas do not guarantee gains |
Using resources effectively means matching material, labour, time, energy, space and capital to useful output. Example: redesigning packaging to use less material while preventing damage can lower material and replacement cost and reduce waste; cutting protection too far would be false economy.
Map the process, locate the waste, change one controllable cause, compare quality/time/cost before and after, standardise a proven improvement and keep monitoring. JIT and Kaizen can complement each other, but neither replaces supplier, quality or contingency management.
Lean does not mean eliminating every spare resource. Some buffer inventory, capacity or time may be valuable insurance where disruption cost is high. JIT is a timing and inventory system; Kaizen is a continuous-improvement approach.
Evaluate robotics across four production outcomes
Robotics uses programmable machines to perform physical production tasks. Its value depends on the task and the whole system: a faster robot is worthwhile only when its cost, quality, productivity and flexibility effects fit the business.
| Outcome | Possible gain | Possible cost/limit |
|---|---|---|
| cost | lower recurring labour/error/waste cost per unit at sufficient volume | purchase, finance, integration, energy, maintenance, programming and training |
| productivity | continuous, fast, repeatable operation increases output per hour/input | downtime or a bottleneck elsewhere can erase the gain |
| quality | precision and consistency reduce human error and rejects | programming/sensor faults can repeat defects at scale |
| flexibility | reprogrammable systems can switch tasks or variants | specialist fixtures and changeovers may be costly; humans may adapt better to unusual/custom work |
Robotics can remove repetitive or hazardous tasks and create technical roles, but can displace some jobs and require reskilling. The employee effect and implementation disruption belong in the decision, not only the machine's output rate.
Compare lifetime cost and expected usable output, not purchase price alone. Consider demand volume/variety, defect cost, reliability, maintenance support, safety, capacity utilisation and whether a labour, mixed or automated system best preserves responsiveness.
Automation does not guarantee lower total cost, perfect quality or 24/7 useful production. Robots follow programmed capabilities; human judgement, maintenance, inspection and contingency plans remain necessary.