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Efficiency of the Production Operation

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Week 4: Discussion Assignment
Efficiency of the Production Operation
Research the process of producing an expensive product (assume that it is something that must
cost at least $1,000). After learning the steps that must be accomplished to produce such a
product, address the following:
What would you expect the layout of a producing facility to look like (in other words, what is
the process layout for such an operation)?
What would determine when someone had finished working on one of these products (in other
words, how would someone know that it was time to work on producing the next unit)?
How would the efficiency of the production operation that you have envisioned be calculated
(your answer should be specific to the type of product you selected, not just a general discussion
of efficiency)?
From your research, are there any ways in which the production of the product could be made
more efficient than the way that it is normally produced? If so, what recommendations could you
make? If not, describe another way in which the product could be made, even if it was
inefficient.
Answers
Research the process of producing an expensive product (assume that it is something that
must cost at least $1,000). After learning the steps that must be accomplished to produce
such a product, address the following:
Layout is one of the key decisions that determines the long-run efficiency of a firm’s
operations. Layout has strategic implication because it establishes an organization’s competitive
priorities in regard to capacity, processes, flexibility, and cost, as well as quality of work life,
customer contact, and image. Heizer, Jay, & Barry (2013) stated, “An effective layout can help
an organization achieve a strategy that supports differentiation, low cost, or response” (p. 358,
para. 2). Toyota Motors (e.g. Toyota Yaris L 2015 model is $15,670 and up), for example,
supports a differentiation strategy of Just-in-Time (JIT) that combined introducing a highly
dynamic manufacturing model to boost the performance of its automobiles and offer its
consumers increased value. Toyota (2015) stated,
“Just-in-Time" means making "only what is needed, when it is needed, and in the amount
needed." For example, to efficiently produce a large number of automobiles, which can consist
of around 30,000 parts, it is necessary to create a detailed production plan that includes parts
procurement. Supplying "what is needed, when it is needed, and in the amount needed"

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according to this production plan can eliminate waste, inconsistencies, and unreasonable
requirements, resulting in improved productivity” (p. 1, para. 1).
Process of producing Toyota follows a pattern of:
(1) Product order information being communicated to the production line (Quantity control).
(2) Timely production (Efficiently producing vehicles with different specifications one at a time
in a timely manner while ensuring high quality; body processing, painting, assembly, and
line-off (Quantity and quality control).
(3) Replacement of parts used (Only those parts that have been used up are retrieved in a timely
manner Quantity control).
(4) Production of parts retrieved (Efficiently producing and replenishing only those parts that
have been retrieved Quantity control). (Toyota, 2015, p. 1).
What would you expect the layout of a producing facility to look like (in other words, what
is the process layout for such an operation)?
Based on its production system, I would expect Toyota to have a Repetitive and Product-
Oriented Layout. Heizer, Jay, & Barry (2013) stated, “Product-oriented layouts are organized
around products or families of similar high-volume, low-variety products” (p. 373, para.
3). Therefore, the following conditions applies to Toyota Motors’ repetitive model:
Volume is adequate for high equipment utilization: JIT. Toyota is able to target a large market
because it has something for everyone. Demand for products (mainly from dealers) are high
because consumers will buy low-cost, high quality, and good design product (law of demand).
Product demand is stable enough to justify high investment in specialized
equipment: Expensive specialized equipment is needed to process some components. However,
economies of scale pays for this in a long-run. Along with differentiation Toyota also uses low
cost to try and gain a competitive advantage in the automotive industry.
Product is standardized or approaching a phase of life cycle that justifies investment: Toyota
has reached its maturity stage with ongoing strategy of maintaining market share.
Supplies of raw materials and components are adequate and of uniform quality: Steps 3 and 4
from para. 4 above.
Product Oriented Layout Consists of Two Lines

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Week 4: Discussion Assignment Efficiency of the Production Operation Research the process of producing an expensive product (assume that it is something that must cost at least $1,000). After learning the steps that must be accomplished to produce such a product, address the following: • What would you expect the layout of a producing facility to look like (in other words, what is the process layout for such an operation)? • What would determine when someone had finished working on one of these products (in other words, how would someone know that it was time to work on producing the next unit)? • How would the efficiency of the production operation that you have envisioned be calculated (your answer should be specific to the type of product you selected, not just a general discussion of efficiency)? • From your research, are there any ways in which the production of the product could be made more efficient than the way that it is normally produced? If so, what recommendations could you make? If not, describe another way in which the product could be made, even if it was inefficient. Answers Research the process of producing an expensive product (assume that it is something that must cost at least $1,000). After learning the steps that must be accomplished to produce such a product, address the following: Layout is one of the key decisions that determines the long-run efficiency of a firm’s operations. Layout has strategic implication because it establishes an or ...
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