u c t i o n o f

Pr o d
E R V I C E S
D S A N D S
G O O ch a p t e r 1 8 !
Let’s meet..

b a n U m b r a !
U r A clothing company that once led the market with
fashionable designs and excellent service quality.
However, lately their production processes have become
inefficient. The company is struggling and falling behind
competitors due to outdated methods of production and
poor resource management. Stella, the business owner, is
deeply concerned about the future of her business. She
calls upon a dynamic team of experts, including Narayani,
Huda, Tushya, Kabir, Pratyakshaa, Ayesha, Azeema,
Aadeen, and Jack to help Urban Umbra LTD. regain its
former glory.
 INTRODUCTION
In the journey to retransform Effective resource management is vital for producing
Urban Umbra, one of the first goods and services. Businesses combine factors like land,
crucial steps is redefining
how the company manages its labor, capital, and enterprise to produce more valuable
resources. output that satisfies the customer demand.

Efficiency in resource utilization is critical for

competitiveness, enabling businesses to minimize costs
and maximize profits.
LAND

GOODS
Input
PRODUCTION
(Economic LABOR
PROCESS
OUTPUT
resources)
SERVICES
CAPITAL

ENTERPRISE
 The Operations Department
The Operations Department Factory Manager:
within a business has the Responsible for the Purchasing Manager:
objective to consider the quantity/quality of the Responsible for gathering
inputs, as in the and products produced, alongside the required
transform them into consumer maintenance of the materials/equipment for
output. This department is production line and other the production.
also responsible for repairs.
overseeing the day-to-day
activities that are essential
for the company to function Research & For retail businesses, the
efficiently; and plays an Development Manager: Factory Manager is
important role in ensuring Responsible for the newer replaced by shop
that the organisation's design & testing of managers; this applies to
resources are utilised better/unique production most service businesses,
processes and goods. like restaurants too.
optimally to achieve its aims
and objectives.
 Benefits of

1 INCREASING PRODUCTIVITY?
Increased productivity leads to a decrease in the
cost per unit, through better resource utilization.
Less input is required to achieve the same output
level.
Productive labor forces reduces the need for
Productivity is the outcome produced additional workforce, resulting in lower labor costs
in a particular amount and reduces wages.
Higher wages, can be paid to workers, which will
of time. Output (over a specific time period)
serve as a motivational factor, potentially increasing
Amount of Input
Output (over a overall productivity.
specific time
period) ! > Businesses often seek to
Number of evaluate the productivity of
employees
their employees or labor force.

What is
PRODUCTIVITY? 2
 why do businesses hold

S T O C K ?
In business, maintaining inventories is a strategic
practice serving multiple purposes. It facilitates meeting
customer demands promptly, avoiding stock-outs, and
capitalizing on bulk purchase discounts. Inventories act
as a buffer against supply chain uncertainties, ensuring
uninterrupted operations. This proactive approach not
only enhances production flexibility but also supports
broader strategic goals. Efficient inventory
management is a cornerstone in achieving
organizational success, fostering customer satisfaction,
and staying competitive in the marketplace.
 Production Methods?
Methods of production refer to the various ways in which goods and
services are produced.
The three main methods of production are:

Job production Batch production Flow production

~Each product is unique and ~Goods are manufactured in ~Goods are produced in large
is made according to the groups, going through each stage quantities using
specific requirements of the of production in batches before standardized designs and
customer. moving on to the next one. machinery.
 Job production
d u c t is m a n u factured
Each pro
e c if ic customer ADVANTAGES
based o n s p
. H ig h q u a li t y p r o DISADVANT
r e q u ir e m e n t s duct AGES
o lu m e o f o u t p u t is High labour
The v Enhances custo costs due to
g e n e r a ll y s m
a ll . mer skilled work
s a t is f a c t io n ers.
h ly f le x ib le , and the
H ig
t io n p r o c e s s is Slower prod
p r o d u c
r d ers. E m p lo y e e s c a n b uction speed
in d iv id u a l o e better
a d a p t a b le t o m o t iv a t e d , d u e
t o v a r ie d
is u n iq u e a n d is tasks. Dependency
Each prod u c t on skilled
u a ll y n o t r e p li c a t e d labor
us
f r e q u e n t ly . M in im is e s t h e r
is k o f e x c e s s
p , s e l ling in v e n t o r y a n d w Higher produ
Eg: A Pain t s h o aste. ction cost
i s e d p a i n t ings. and price
custom
 Batch production
G oo ds ar e m an uf ac tu re d
in ADVANTAGES
on
ba tc he s an d th e pr od uc ti O f f e r s a f le x ib le DISADVANTAG
pr oc es s oc cu rs in st ag es
.
p r o d u c t io n .
approach to ES
P ro ce ss an d pr od uc t B a t c h p r o d u c t io
It g iv e s v a r ie t y n can
pl an ni ng is do ne fo r ea ch to workers’ in c u r h ig h c o s t s
ba tc h. jo b s .

M a in t a in in g c o n
A ll ow s fo r th e di vi si on of B e n e f it s f r o m e s is t e n t
c o n o m ie s o f q u a li t y a c r o s s b
la bo r am on g di ff er en t s c a le c o m p a r e d atches
t o jo b
st ag es of pr od uc ti on . p r o d u c t io n .
c a n b e c h a ll e n g in
g.
y
R es ou rc es ar e ef fi ci en tl L o n g e r p r o d u c t io
h. P r o d u c t io n m a y n t im e
ut il is ed w it hi n ea ch ba tc not be
s ig n if ic a n t ly im
pacted by
.
B a k e r y it e m s , s o a p s m a c h in e r y b r e a k
down.
Flow production
P ro d u c ti o n o c c u rs
c o n ti n u o u s ly w it h o u
t ADVANTAGES D IS A D V A N T A G E S
in te rr u p ti o n .
Bo rin g sy st em fo r th e
Hi gh ou tp ut of th e pr od uc t.
ts a re
S ta n d a rd is e d p ro d u c wo rk er s.
p ro d u c e d u n d e r th is
Lo we r pe r- un it co st s du e to
m e th o d . Th e ca pi ta l co st s of
ef fic ien t pr od uc tio n
pe of se tt in g up th e
T h e re w il l b e o n e ty
cess. pr od uc tio n lin e ca n be
m a c h in e f o r e a c h p ro It ma y be ne fit fr om ec on om ies
of sc al e in pu rc ha sin g. ve ry hi gh .
n ti c a l
L a rg e n u m b e r o f id e
g o o d s a re p ro d u c e d . If on e m ac hi ne br ea ks
St an da rd isa tio n lea ds to
g, co ns ist en t qu al ity ac ro ss do wn th e wh ol e
C a r m a n u f a c t u r in
pr od uc ts pr od uc tio n lin e wi ll ha ve
C o c a -C o la
to be ha lte d.
Lean Production
Lean production is a business technique that reduces
resource waste and time, aiming to increase
efficiency by reducing the time for product
development and service offerings.

There are seven types of waste that can occur

in production:

Overproduction - The production of goods before

customer orders, le ads to high storage costs and
potential damage to goods during storage.
 Motion - Including employee
Waiting - Occurs when bending or stretching, wastes
goods are not moving or time and poses health and
being processed in any way. safety risks, especially for
machines that may not be
Transportation - necessary.
Unnecessary transportation
of goods can lead to waste Over-processing - is
and damage, as it does not wasteful when complex
add value to the product. machinery is used for simple
tasks, potentially due to poor
Excessive inventory - product design or unnecessary
An excess of inventory activities in production.
consumes space, might
impede productivity, and is Defects - Any flaws need
expensive. fixing the items, and examining
the products might take time.
 KAIZEN
ADVANTAGES:
ADVANATGES:
Kaizen is a Japanese Brings a sense of value
(kai) (zen) Cost reduction through
term meaning continuous and purposefulness to
change good minimized inventory.
improvement. It is a employees, which helps
Lower storage space
method focused on boost morale.
required.
making small changes to Reduces waste during the
Efficient use of resources
improve production production processes.
due to reduced excess
processes. Continuous improvement
inventory.
leads to enhanced quality
enhanced quality
Instead of depending on in products or services.
DISADVANTAGES:
new technology or DISADVANTAGES:
Dependency on reliable
equipment, Kaizen It can be a time
suppliers.
focuses on the ideas and consuming process.
Risk of running out of
solutions contributed by Difficult to implement in
stock
workers themselves. existing systems
Good planning required
 JUST-IN-TIME(JIT)
Just in time is a
ADVANTAGES:
management and
Cost reduction through
production strategy that
minimized inventory.
aims to optimize efficiency
Lower storage space
and minimize waste in the
required.
production process.
Efficient use of
resources due to reduced
In this approach, raw
excess inventory.
materials and components
enhanced quality
are delivered only when
DISADVANTAGES:
they are required for the
Dependency on reliable
production process.
suppliers.
Risk of running out of
By maintaining low
stock
inventory levels, businesses
Good planning required
can reduce storage costs.
 CELL PRODUCTION
ADVANTAGES:
Cell production is a A well-designed cell
provides quick, efficient
production method in
flow and high-quality
which the production
production.
line is separated into
New or modified products
discrete, self-contained
can be added without
units (cells), each of
impacting the existing
which produces a part
process.
of the final product. Flexibility and enhnaced
quality
This approach is DISADVANTAGES:
designed for efficiency, High initial cost
minimizing movement Cell production may not be
and optimizing as effective for small-scale
production flows. productions or for products
with low demand.
 IMPACT OF TECHNOLOGY
in production methods
The introduction of technology has significantly altered production methods by
automating processes, improving efficiency, and optimizing [Link] the
development of technology, the way things are manufactured has changed by
moving from manual labor to automated production.

CAD, computer aided design ,allows businesses to

Computer Integrated Manufacturing (CIM), create detailed and precise digital
ensures seamless coordination among various representations of products before they are
components through computer systems. physically manufactured.
Electronic Funds Transfer at Point of Sale
CAM, short for computer-aided manufacture, (EFTPOS) simplifies transactions by enabling
involves the monitoring of the production electronic payments at the point of sale.
process by computers, which then control Electronic Point of Sale (EPOS) systems,
especially at checkouts, enhance retail efficiency
machines or robots on the factory floor.
by utilizing electronic devices for tasks such as
inventory management and sales transactions.
ADVANTAGES:
Automation and advanced tools minimize
labor costs and operational expenses.
New technology enables the introduction of
innovative products, expanding market
offerings.
Advanced technologies enhance the
efficiency of production processes,
minimizing time and resource wastage

DISADVANTAGES:
Automation may lead to job losses as machines
replace human tasks.
Implementing new technology requires high initial
cost
Workers may need extensive training to adapt and
to operate the machinery.
Over reliance on technology poses risks if systems
fail
 A n y
S T I O N S ?
QU E Ask away!
time for a.....

QUIZ!
Let’s check if
you’ve been p
aying attention!
What are the main types
of production methods,
and how do they differ
from one another?
 ANSWER!
Job, Batch and Flow Production

Job production produces unique, custom items

or goods usually in small quantities. Whereas
Batch production goods are produced in batches
going through each stage of production in
groups.
Flow production produces standardized goods
on a large scale
How do advancements in
technology impact the
evolution of production
methods over time?
 ANSWER!
Technology has led to a shift from
manual labor to automation over time.
Because of technological advancements,
the production methods have become
more efficient, resulting in enhanced
job satisfaction and improved quality
product. This also leads to customer
satisfaction.
 In what way does lean
production encourage
continuous improvement
within a business?
 ANSWER!
Through Kaizen, an
efficiency method under
lean production.
• This method aims for continuous improvement.
It is focused on making small changes to
improve the production process.
What type of
production
method would
generally be
used to
produce this
edible good?
 ANSWER!

Batch Production!
• Using this method, products are produced in
batches and the production process occurs in
stages.
What determines
the productivity
of a business?
 ANSWER!

A business's productivity is detremined by its

ability to produce the same level of output (of
high quality goods or services) using fewer
resources and minimizing waste.
 What is the formula
used to calculate
productivity, and
labour productivity?
 ANSWER!

Output (over a specific time <-- productivity

period)

Amount of Input
Output (over a specific time
period)

labour Number of employees

productivity -->
 State at least 2
advantages and
disadvantages of flow
production method.
 ANSWER!
ADVANTAGES: DISADVANTAGES:
High output of the product. Boring system for the
workers
Lower per-unit costs due to
efficient production The capital costs of setting
up the production line can
It may benefit from be very high.
economies of scale in
purchasing. If one machine breaks down
the whole production line
Standardisation leads to will have to be halted.
consistent quality across
products
`
 What method of production is used
by each of the following
businesses? Explain the reasons for
your choice.
• Urban Umbra LTD, a well-known brand of clothing. The
clothes are sold in multiple outlets, all over the country, and
hundreds are sold each year.

• Alexander is a hairdresser. He styles men’s hair and has a

number of regular customers.
 ANSWER!

Flow production: high sales, wide

distributions, standardized designs.
Job production: personalized service,
customization
that’s all for the quiz! now,

creds!
let’s move onto....

next slide --->

 Time to roll the......

CREDITS.
~Narayani ( leader) We’re (of course) vERY open to
~Huda feedbacks, even the ‘brutally honest’
~Ayesha
~Azeema
~Pratyakshaa
TEAM ones (i’m looking at you, megan).

~Kabir MEMBERS!
~Jack
~Adeen ~~Miss Shipra’s teaching
~Tushya :)
~The holy textbook special

We hope you enjoyed, and understood

~>1% of our non- thanks!
~Dear brother Google

braining but braining

or even processed at least some of the (data/input?)
brains.
content! Though we can’t guarantee ~Teamwork!
that it wasn’t boring but oops! (everyone interacted!)
 H A N K
T
YO U !
Have a good day!