Operations Methods: How Businesses Actually Make Stuff

Imagine you're running a bakery. You need to make delicious cakes, pastries, and bread. But how do you do it? That's where operations methods come in. They're the strategies and processes businesses use to create goods and services.

Think of them like recipes: each one has specific steps and ingredients to get the desired result. Operations methods can range from simple, like baking a single cake, to complex, like building a car or developing a new software program.

2. Common Operations Methods

Here are some of the most common methods businesses use:

Mass Production:

This method focuses on making large quantities of identical products quickly and cheaply. Think about car factories or soda bottling plants. This works well for products with high demand and little customization.

-Example: Ford's Model T was famously built using mass production techniques, leading to affordable cars for the masses.

Job Production:

This method focuses on creating unique, one-off products, often tailored to a specific customer's needs. Think of tailor-made suits, handcrafted furniture, or custom-built houses.

-Example: A local artisan who creates handcrafted jewelry, each piece unique and designed for a specific customer, uses job production.

Batch Production:

This method falls somewhere between mass and job production. It involves creating a set quantity (batch) of products at a time, which can be customized to some extent. Think about bakeries producing dozens of loaves of bread, or clothing companies making limited runs of specific designs.

-Example: A brewery may use batch production, brewing a specific quantity of beer at a time, with slight variations in flavor for different batches.

Lean Production:

This method focuses on eliminating waste and streamlining processes to create products efficiently. This is often used in manufacturing, but can be applied to any industry.

-Example: Toyota's production system is a famous example of lean production, focusing on minimizing waste and maximizing efficiency.

Cellular Manufacturing:

This method organizes workers into small, self-contained teams, each responsible for a specific part of the production process. It aims to encourage teamwork and increase efficiency.

-Example: A factory might use cellular manufacturing to create different components of a product, with each team specializing in a specific area like welding, assembly, or finishing.

Just-in-Time (JIT) Inventory:

This method focuses on receiving materials and producing products only when needed, eliminating the need for large stockpiles.

-Example: A restaurant might use JIT inventory, ordering fresh ingredients only when necessary to ensure quality and minimize waste.

3. Challenges of Transitioning Between Methods

Changing operations methods can be challenging for businesses. Here are some common hurdles:

Investment:

Switching to a new method often requires significant investment in new equipment, technology, or training.

-Example: Switching from mass production to lean production might require investing in new machinery, software, and employee training.

Employee Resistance:

Workers may be resistant to changes, especially if they feel their jobs are threatened or the new method is more complex.

-Example: Replacing manual assembly lines with automated robots might lead to worker resistance, as they could fear job losses.

Disruption to Production:

Introducing a new method can temporarily disrupt production, leading to delays and decreased output.

-Example: Implementing a new inventory management system might lead to initial stock shortages or delays in deliveries.

Loss of Expertise:

Changing methods may require businesses to retrain employees or hire new ones with different skills.

-Example: Moving from batch production to cellular manufacturing might require training employees to work in self-contained teams and learn new skills.

Integration with Existing Systems:

A new method needs to be integrated with existing systems, which can be complex and time-consuming.

-Example: Implementing a new software system to manage production might require linking it to existing databases and communication systems, which can be challenging.

Conclusion

Operations methods are essential for businesses to create goods and services efficiently and effectively. However, switching between methods can be challenging, requiring careful planning and consideration of potential obstacles.

By understanding the different methods and their challenges, businesses can make informed decisions about how to operate and adapt to the ever-changing market.