Production - forms of organization
| Production - forms of organization |
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The production is a very broad term, which can be understood in several ways. Most important areas of use are fields of: Economics and Management Sciences. For economists it will mean actions of enterprises providing
goods and services on the market, while from the perspective of the management sciences it will mean mainly production process.
The main objective of companies operating on the market is profit maximization. Manufacturing companies decide on the size of the production on the basis of the economic calculation and assessment of demand for the manufactured good. In accordance with Economic Science production is studied from the point of view of production decisions made by all companies on the market.
In the context of Management Science production is described as a process consisting of several consecutive steps, which goal is to make a final good. The manufacturing process uses among others: raw materials, consumables, semi-finished products, parts and assemblies. Production process, however, is much more complex and includes: machines, configurations of equipment, control, transport and storage of finished products.
Classification of production forms
There are several forms of production organization that are used in industry, each with their own advantages and disadvantages. Some of the most common forms of production organization include:
- Job production: This is the traditional form of production organization, where each worker is responsible for a specific task or job. This form of production is often used for the production of unique or customized products, such as custom-made furniture or one-of-a-kind artwork.
- Batch production: This form of production organization is used for the production of a batch of similar products. Batch production is often used for the production of products that are produced in small quantities, such as specialty foods or handmade crafts.
- Mass production: This form of production organization is used for the production of large quantities of standardized products. Mass production is often used for the production of consumer goods, such as automobiles, appliances, and electronics.
- Lean production: This form of production organization is based on the principles of lean manufacturing, which emphasizes the elimination of waste and the reduction of inventory. It aims to produce goods with the highest quality while minimizing waste and improving efficiency.
- Continuous flow production: This form of production organization is used for the production of goods that are continuously produced in a continuous flow, such as chemicals, oil, and gas.
- Project-based production: This form of production organization is used for the production of goods or services that are unique and require a specific set of skills. It is often used for the construction of buildings, ships, and other structures.
Each form of production organization has its own advantages and disadvantages, and the best one depends on the product or service that is being produced, the size of the company, and the company's goals and objectives.
References
- Kleindorfer, P. R., Singhal, K., & Wassenhove, L. N. (2005). Sustainable operations management. Production and operations management, 14(4), 482-492.
