Question

Explain how the following concepts have shaped the operations management: A. Just-in-time B. Mass customization

Answer 1

A. Just-in-time is an innovative concept in manufacturing industry which helps to reduce wastage and improves the productivity of the organization more efficiently than before. It facilitates a smooth production flow thus decreasing the labor and inventory cost to a great extent. In this approach, the orders are processed only when required by the customers. The benefits of JIT have shaped operations management in the following ways:

- Continuous and smooth production flow- increases productivity efficiently and effectively.

- Pull method is used in the process – the goods are produced only when they are needed.

- Reduction in the inventory of goods

- JIT requires adherence to the maintenance of the equipment to foster smooth production flows.

- There is greater employee satisfaction and stronger relationship with the management.

B. Mass production- Mass production is the process of producing goods in large quantities. It helps the operations management in the following ways:

- Economies of scale- Mass production reduces unit cost of the product

- Cost efficient- It helps to reduce labor cost and the materials cost. There is optimal utilization of resources.

- Accuracy in production- Standardized products are produced thus making accurate products without defects.

- Faster production- Facilitates faster production as the production process is streamlined.