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==Advantages and disadvantages of nested production== | ==Advantages and disadvantages of nested production== | ||
Nested production refers to a type of production process where a product is made up of multiple sub-components or subsystems, each of which is produced by a different supplier or manufacturer. Nested production can have several advantages and disadvantages. | Nested production refers to a type of production [[process]] where a product is made up of multiple sub-components or subsystems, each of which is produced by a different [[supplier]] or manufacturer. Nested production can have several advantages and disadvantages. | ||
Advantages of nested production include: | Advantages of nested production include: | ||
* Cost savings: Nested production allows companies to take advantage of economies of scale and specialized expertise offered by different suppliers, which can lead to cost savings. | * [[Cost]] savings: Nested production allows companies to take advantage of [[economies of scale]] and specialized expertise offered by different suppliers, which can lead to cost savings. | ||
* Flexibility: Nested production allows companies to adapt quickly to changes in demand or product specifications, as they can easily switch suppliers or sub-components. | * Flexibility: Nested production allows companies to adapt quickly to changes in [[demand]] or product specifications, as they can easily switch suppliers or sub-components. | ||
* Innovation: Nested production can lead to increased innovation, as suppliers are incentivized to develop new products and technologies in order to win contracts. | * [[Innovation]]: Nested production can lead to increased innovation, as suppliers are incentivized to develop new products and technologies in order to win contracts. | ||
* Access to specialized knowledge: Nested production allows companies to access specialized knowledge and expertise offered by different suppliers, which can lead to improved product quality and performance. | * Access to specialized [[knowledge]]: Nested production allows companies to access specialized knowledge and expertise offered by different suppliers, which can lead to improved product [[quality]] and performance. | ||
Disadvantages of nested production include: | Disadvantages of nested production include: | ||
* Complexity: Nested production can be complex and difficult to manage, as companies need to coordinate the activities of multiple suppliers and sub-components. | * Complexity: Nested production can be complex and difficult to manage, as companies [[need]] to coordinate the activities of multiple suppliers and sub-components. | ||
* Dependence on suppliers: Nested production can lead to dependence on suppliers, which can make it difficult for companies to switch suppliers or sub-components if necessary. | * Dependence on suppliers: Nested production can lead to dependence on suppliers, which can make it difficult for companies to switch suppliers or sub-components if necessary. | ||
* Quality control: Nested production can make it difficult to maintain consistent quality control across all sub-components, which can lead to product defects or failures. | * [[Quality control]]: Nested production can make it difficult to maintain consistent quality control across all sub-components, which can lead to product defects or failures. | ||
* Risk of disruptions: Nested production can be vulnerable to disruptions in the supply chain, as problems with one supplier or sub-component can impact the entire product. | * [[Risk]] of disruptions: Nested production can be vulnerable to disruptions in the supply chain, as problems with one supplier or sub-component can impact the entire product. | ||
* Communication and coordination difficulties: Nested production can lead to difficulties in communication and coordination between different suppliers, which can impact on-time delivery and product quality. | * [[Communication]] and coordination difficulties: Nested production can lead to difficulties in communication and coordination between different suppliers, which can impact on-time delivery and [[product quality]]. | ||
==References== | ==References== |
Revision as of 21:31, 20 January 2023
Nested production |
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See also |
Nested, non-rhthmic production - (non-pipeline, unique, unstable, short batches of products) - direction of products is variable and each workstation can work with different order of technological operations.
In non-rhythmic production workstations perform different, randomly assigned operations. The course of these operations in time is not regulated by periodically repeating schedules, and is largely accidental. Therefore, in the absence of periodically repeated schedule, workstations are separated with minimal ties and relationships.
Nested production may be performed in:
- in the cells divided according to the technological structure
- in the cells divided by product
- in production lines
Advantages and disadvantages of nested production
Nested production refers to a type of production process where a product is made up of multiple sub-components or subsystems, each of which is produced by a different supplier or manufacturer. Nested production can have several advantages and disadvantages.
Advantages of nested production include:
- Cost savings: Nested production allows companies to take advantage of economies of scale and specialized expertise offered by different suppliers, which can lead to cost savings.
- Flexibility: Nested production allows companies to adapt quickly to changes in demand or product specifications, as they can easily switch suppliers or sub-components.
- Innovation: Nested production can lead to increased innovation, as suppliers are incentivized to develop new products and technologies in order to win contracts.
- Access to specialized knowledge: Nested production allows companies to access specialized knowledge and expertise offered by different suppliers, which can lead to improved product quality and performance.
Disadvantages of nested production include:
- Complexity: Nested production can be complex and difficult to manage, as companies need to coordinate the activities of multiple suppliers and sub-components.
- Dependence on suppliers: Nested production can lead to dependence on suppliers, which can make it difficult for companies to switch suppliers or sub-components if necessary.
- Quality control: Nested production can make it difficult to maintain consistent quality control across all sub-components, which can lead to product defects or failures.
- Risk of disruptions: Nested production can be vulnerable to disruptions in the supply chain, as problems with one supplier or sub-component can impact the entire product.
- Communication and coordination difficulties: Nested production can lead to difficulties in communication and coordination between different suppliers, which can impact on-time delivery and product quality.
References
- Anderson, R. K., & Moroney, J. R. (1993). Morishima elasticities of substitution with nested production functions. Economics Letters, 42(2), 159-166.