Production structure optimization: Difference between revisions
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'''Production structure optimization''' involves making production decisions based on the developed activity programs. Any decision on the assortment structure and volume of production is reflected in the [[cost]]s incurred and achieved revenues and, consequently realized [[profit]]s. | '''[[Production]] structure optimization''' involves making production decisions based on the developed activity programs. Any decision on the assortment structure and volume of production is reflected in the [[cost]]s incurred and achieved revenues and, consequently realized [[profit]]s. | ||
==Goals== | ==Goals== | ||
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* Improving [[quality]]: Improving the quality of the goods or services produced by identifying and eliminating defects and variations in the production process. | * Improving [[quality]]: Improving the quality of the goods or services produced by identifying and eliminating defects and variations in the production process. | ||
* Enhancing flexibility: Increasing the ability of the production [[system]] to adapt to changing demand, product mix, and other factors. | * Enhancing flexibility: Increasing the ability of the production [[system]] to adapt to changing demand, product mix, and other factors. | ||
* Minimizing waste: Identifying and reducing waste in the production process in order to improve the overall efficiency of the system. | * Minimizing waste: Identifying and reducing waste in the production process in order to improve the overall [[efficiency of the system]]. | ||
* Optimizing the use of resources: Ensuring that the [[production system]] is making the best use of resources, such as equipment, materials, and labor, in order to improve efficiency and reduce costs. | * Optimizing the use of resources: Ensuring that the [[production system]] is making the best use of resources, such as equipment, materials, and labor, in order to improve efficiency and reduce costs. | ||
* Enhancing safety: Improving safety in the production process by identifying and eliminating hazards, and implementing safety procedures and protocols. | * Enhancing safety: Improving safety in the production process by identifying and eliminating hazards, and implementing safety procedures and protocols. | ||
* Improving sustainability: Enhancing the sustainability of the production process by reducing environmental impact and promoting sustainable practices. | * Improving sustainability: Enhancing the sustainability of the production process by reducing [[environmental]] impact and promoting sustainable practices. | ||
Overall, the goal of production structure optimization is to improve the efficiency, effectiveness, and [[competitiveness]] of the production system. This can be achieved by identifying and eliminating inefficiencies, improving quality, and making the best use of resources, all of which can lead to cost savings, increased productivity, and improved [[customer]] satisfaction. | Overall, the goal of production structure optimization is to improve the efficiency, effectiveness, and [[competitiveness]] of the production system. This can be achieved by identifying and eliminating inefficiencies, improving quality, and making the best use of resources, all of which can lead to cost savings, increased productivity, and improved [[customer]] satisfaction. | ||
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Manufacturing companies tend to produce such [[range of products]] that the [[profit]] made from their sale is a maximum. | Manufacturing companies tend to produce such [[range of products]] that the [[profit]] made from their sale is a maximum. | ||
Specifying the assortment structure and volume of manufacturing companies must take into account various considerations of business activity: | Specifying the assortment structure and volume of manufacturing companies must take into account various considerations of [[business activity]]: | ||
* Internal (dependent on activities of [[management]]) - includes: means of production, resources, machinery and equipment, raw materials, personnel, etc. | * Internal (dependent on activities of [[management]]) - includes: means of production, resources, machinery and equipment, raw materials, personnel, etc. | ||
* External (independent) - mainly [[market]] [[demand]] on manufactured goods. | * External (independent) - mainly [[market]] [[demand]] on manufactured goods. | ||
Revision as of 13:37, 20 March 2023
| Production structure optimization |
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| See also |
Production structure optimization involves making production decisions based on the developed activity programs. Any decision on the assortment structure and volume of production is reflected in the costs incurred and achieved revenues and, consequently realized profits.
Goals
The goals of production structure optimization can include:
- Increasing productivity: Improving the efficiency of the production process in order to increase the output of goods or services.
- Reducing costs: Identifying and eliminating inefficiencies in the production process in order to reduce costs.
- Improving quality: Improving the quality of the goods or services produced by identifying and eliminating defects and variations in the production process.
- Enhancing flexibility: Increasing the ability of the production system to adapt to changing demand, product mix, and other factors.
- Minimizing waste: Identifying and reducing waste in the production process in order to improve the overall efficiency of the system.
- Optimizing the use of resources: Ensuring that the production system is making the best use of resources, such as equipment, materials, and labor, in order to improve efficiency and reduce costs.
- Enhancing safety: Improving safety in the production process by identifying and eliminating hazards, and implementing safety procedures and protocols.
- Improving sustainability: Enhancing the sustainability of the production process by reducing environmental impact and promoting sustainable practices.
Overall, the goal of production structure optimization is to improve the efficiency, effectiveness, and competitiveness of the production system. This can be achieved by identifying and eliminating inefficiencies, improving quality, and making the best use of resources, all of which can lead to cost savings, increased productivity, and improved customer satisfaction.
Applications
Manufacturing companies tend to produce such range of products that the profit made from their sale is a maximum.
Specifying the assortment structure and volume of manufacturing companies must take into account various considerations of business activity:
- Internal (dependent on activities of management) - includes: means of production, resources, machinery and equipment, raw materials, personnel, etc.
- External (independent) - mainly market demand on manufactured goods.
Methods
In terms of optimization of product structure, the most frequently used methods are:
- Linear programming
- Analysis of the portfolio of products
- BCG growth-share matrix
- McKinsey matrix
- Production logistics subsystem
- Production capacity curve
- Production reserve
- Production process
- Group technology
- Operational controlling
- Factors affecting demand
References
- Day, G. S. (1977). Diagnosing the product portfolio. The Journal of Marketing, 29-38.
