Page 530 - Business Principles and Management

Chapter 19 • Product Planning and Production Management

product. Many products you use are assembled
through mass production. Automobiles, cameras,
home appliances, and many brands of computers
are mass-produced.
Mass production enables companies to manu-
facture products at a low cost and in large quan-
tities. But many changes have occurred in mass
production since Henry Ford first used assembly
lines to produce cars in the early 1900s. Now
manufacturers often train assembly line workers
to perform several different activities. Workers
can then switch tasks periodically to make the job
more interesting. Teams of workers and supervi- PHOTO: © GETTY IMAGES/PHOTODISC.
sors meet regularly to identify problems and de-
velop solutions. Computers monitor the assembly
process to ensure that needed parts and materials
are available at the right time and the right place.
Robots stationed at many places along assembly
lines complete tasks such as painting, welding, and
quality-control testing.
How has mass production
CONTINUOUS PROCESSING Raw materials usually need to be processed before they can changed since its first use
be consumed. With continuous processing, raw materials constantly move through in the early 1900s?
specially designed equipment that changes their form to make them more usable for
consumption or further manufacturing. Steel mills, for example, convert iron ore
into steel to be used by other manufacturers. Oil refineries change crude oil into a
variety of petroleum products, including gasoline and heating oil. Cereal manufac-
turers process many different kinds of grain into the cereals you eat for breakfast.
Production runs may last days, weeks, or months without equipment shutdowns.

REPETITIVE PRODUCTION In repetitive production, the same thing is done over and
over to produce a product. The activity is usually rather simple and can be com-
pleted in a short time. The repetitive process may use
modules (preassembled parts or units) in the assem-
bly process. For example, the repetitive process is
used to produce washing machines. First, the motor
is assembled as a separate module. Then it is installed
in the frame, which has been assembled separately.
Controls, hoses, and other features may be added in The International Organization for Standard-
yet another process. Mobile homes and recreational ization (ISO) has done a remarkable job of
vehicles are often assembled using repetitive produc- ensuring that companies around the world
tion. Individual sections are constructed and then meet quality standards across a number of
brought together for final assembly on the frame products. Their latest standards are helping
or chassis.
to ensure that companies meet environmental
standards as well. Point your browser to
INTERMITTENT PROCESSING Intermittent processing uses www.thomsonedu.com/school/bpmxtra. Read
short production runs to make predetermined quan- the overview of the ISO system and the ISP
tities of different products. The most common form 9000 and 14000 standard. Explain how these
of intermittent processing is the manufacturing or standards are helping companies, customers,
assembly of a specific product to meet a customer’s and the general public worldwide. Would a
order or specifications. An example of a business company want to compete in the world mar-
using intermittent manufacturing is a printing com- ket without meeting these standards?
pany. Each printing job varies in quantity, type of
printing process, binding, color of ink, and type of www.thomsonedu.com/school/bpmxtra
paper. When the company receives an order, the

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