Mass production involves multiple assembly lines, where various people run routine procedures and do one specific job. The same equipment is used to perform the identical operation on a batch of products being manufactured. For the efficiency of the labor process,panies use differentiation, formalization, and specializationples is to keep manufacturing costsCost of Goods Manufactured (COGM)Cost of Goods Manufactured (COGM) is a term used in managerial accounting that refers to a schedule or statement that shows the totallow by using repetitive and standardized processes to produce uniform products. The evolution and innovation of sophisticated technologies play a great role in making manufacturing lessplicated. The large-scale demand for mass-produced products manufactured at a low cost using a minimal workforce is achieved using precision machining equipment. See full list on Mass customizationinvolves providing end-users with what suits their needs at a lower cost. Thus, products that meaningfully meet customer’s needs are customized on a large scale. The conventional firms that deal with mass customization call for flexibility, responsiveness, and the configuration of units, processes, people, and environments to provide uniquely customized products that meet user requirements at a relatively low cost. Mass customization focuses on markets with fragmented customer segments and with customer’s preferences being harder to hypothesize and prone to changes. More intimate knowledge about end-users and higher profits creates a feedback loop system, which can helppanies provide even better and different products. In contrast, mass productionis the forerunner of mass customization. Mass productionpanies replicate a hierarchical and bureaucratic system where workers perform repetitive roles that are narrowly defined, resulting in standardized, low-cost... See full list on 1. High precision rate Mass production can result in a high-precision rate if production is strictly monitored and validated using present parameters. 2. Low production costs It is also associated with low production costs because the mechanization eliminates redundant job roles, thus requiring fewer workers. 3. Higher efficiency levels Additionally, mass production can lead automation assembles mass-produced items faster. It also gives firms apetitive edgeCompetitive AdvantageApetitive advantage i to outperform to achieve superior marginsand higher profitability because the rapid assembly helps in the faster distribution and marketing of products. See full list on 1. Capital-intensive First, mass production requires automated assembly lines, which is capital-intensive and requires large sums of investments to set up and maintain. Onlypanies with a large capital outlay can implement mass production in their manufacturing process. 2. Requires constant upgrades Second, mass production systems require upgrad new improvements to keep up with the latest innovations in the market. A typical scenario can be seen in a pharmaceutical firm that manufactures popular drug products on aprehensive assembly line. If a different production process is required dr significant investment in time and money to adopt a new assembly lineased employee turnover Lastly, mass production is associated with low employee moraleEmployee MoraleEmployee morale is defined as the overall satisfaction, outlook, and feelings of well-being that an employee holds eased levels of employee turnover due to the repetitive nature of the production process. See full list on An early example of mass production dates back to 1913 when Henry Ford pioneered the first assembly line technique for his famous Ford Model T. Ford’s automobiles became available at a lower price because of the efficiency of the method. Initially, the assembly lines were segmented to allow each worker to work on a single step before accelerating the process using a mechanized belt. It saw the innovative production approach realize the reduced time it took to build the Model T automobile from 12 hours to two and a half hours. Automobilepaniesstill use Ford’s mass production method for rapid manufacturing. See full list on CFI offers the Commercial Banking & Credit Analyst (CBCA)™Program Page - CBCAGet CFI's CBCA™ certification and be a Commercial Banking & Credit Analyst. Enroll and advance your career with our certification programs and courses.certification program for those looking to take their careers to the next level. To keep learning and developing your knowledge base, please explore the additional relevant resources below: 1. Capital ExpendituresCapital ExpendituresCapital expenditures refe for the purchase, improvement, or maintece of long-term assets to improve 2. Mass CustomizationMass CustomizationMass customization refers to a business process of providing customized goods and services that best meet individual customer’s needs. 3. Economies of ScopeEconomies of ScopeEconomies of scope is an economic concept that refers to the decrease in the total cost of production when a range of products are produced together rather than separately. 4. Man... See full list on
Get Price
