Accounting technicians scheme west africa

230 bi The size of the organisation: Big organisations often have the resources to purchase expensive and advanced mass production facilities. c)
The extent of demand or frequency of orders – where the product is amass product (e.g. detergents with mass demand) it maybe necessary to go in for mass production. d)
Degree of automation and technology: The level of automation needed for the production process will determine the process to be adopted. e)
Degree of customer contact: A production process with high degree of customer contact will be service oriented adopting the batch production system.
Summary

Production has to do with the transformation of inputs into products and services to satisfy human wants and needs. These inputs are transformed into outputs within production systems. The functions of production management in an organisation include deciding on type of Production System to use planning the location of the organisation’s facilities planning the plant layout and design of organisation’s facilities planning and Controlling the Production Process research and development of new products maintenance of facilities of the organisation deciding on the appropriate replacement strategy to employ and ensuring compliance with health and safety procedures. To ensure that production activities goon successfully, the company should locate its plant at the right place. Factors which influence plant location are raw materials, government policy, market, commercial and social infrastructure and characteristics of the site. Plant layout and design is also considered important as it influences the free movement of people, raw materials, inventory, machine and equipment during the production process. Principles plant layout include the principles of overall integration, minimum distance, flow, cubic space, satisfaction and safety, and flexibility. There are four types of plant layout which shows the arrangement to facilitate the production process efficiently, namely product/line, process, fixed position and combination type layouts. There are four main kinds of productions systems – job, mass, continuous flow and repetitive/batch. The decision of the type of production systems to be used is based on type of goods or services to be produced size of the organisation extent of demand or frequency of orders degree of automation and technology or degree of customer contact.

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