DOUGLAS KIPKURUI

BTT/06/13

OPERATIONS
MANAGEMENT
BTT..315
TERM PAPER

1. Describe the differences between batch and flow production.

Flow production.
Flow Production requires specialist machinery. Because of the high capital investment
requirement, it is essential to achieve high level of utilisation. This requires a high level of sales
of a fairly standardized product made for stock.
Flow production links up with a strategy of undifferentiated marketing whereas batch production
suggests that the product is tailored to suit the needs of particular customers or segments.
The manpower required is specialist, but low in skills and performing repetitive task as
compared to batch production where the levels of skills required are comparatively high.
The great advantage of line production is that with long production runs unit costs will be very
low as compared to batch production.

Batch production
This is a technique used in manufacturing, in which the object in question is created stage by
stage over a series of workstations, and different batches of products are made. With job
production (one-off production) and flow production (continuous production) it is one of the
three main production methods.
There is some repetition of production which is for stock (rather than to order). Production is not
continuous. Change-over between batches means that resources are idle at times. Consequently,
production managers have to plan production schedules to minimize changeovers. The
machinery employed will be specialised for production of the firm's products, but yet flexible
enough for different batches.
Batch production is most common in bakeries and in the manufacture of sports shoes,
pharmaceutical ingredients, purifying water, inks, paints and adhesives. In the manufacture of
inks and paints, a technique called a colour-run is used. A colour-run is where one manufactures
the lightest colour first, such as light yellow followed by the next increasingly darker colour such
as orange, then red and so on until reaching black and then starts over again.

2. Critically evaluate the reasons why Cadbury Schweppes uses batch

production when making chocolate bars.

There are several advantages of batch production, and these advantages may be the reason
Cadbury Schweppes has choose batch production in their chocolate bar production; it can reduce
initial capital outlay (the cost of setting up the machines) because a single production line can be
used to produce several products. Like the production of thousands of chocolate bars. If a retailer
buys a batch chocolates then demand go down then Cadbury Schweppes can cease production
without having to sustain huge losses.
The other advantages to batch production, including reduced initial costs and operating costs, a
wide range of associated products, and a flexible production process and scale. Additional
advantages include many of those typically associated with mass industrial and commercial
production. One of the major advantages is the reduction of time required to produce a single
product, because multiple products are pushed through the same process at the same time.
Initial costs are often reduced because related machinery can be less expensive than many
different kinds of production machines. Batch production is common in many settings, because
the time reduction often translates into a smaller financial outlay. Initial and operating costs are
further reduced when such production systems are designed with interchangeable elements.
Rather than needing to replace an entire production line, a single process among many can be
altered based on production needs. Example; instead of entirely stopping the production of white
chocolate bars, Cadbury Schweppes can just add coco to the production process of the white
chocolates and get normal brown chocolate bars.
Operation costs all the way up to the final stages also can be reduced using this type of
production. Many systems are meant to be run intermittently, so the cost of downtime is often
reduced. For instance, Cadbury Schweppes can use batch process to produce all the chocolate
bars required as per the day order and then shut down production. Unlike with continuous
production, batch production often can be designed to account for downtime without significant
financial impact. This characteristic also applies to changes in production methods or product
design. Like instead for chocolate bar they produce chocolate balls or ester bunny shaped
chocolate.
Batch production lines are often more easily altered than other methods. This is especially
advantageous when new products, changes to old products or upgrades are required. Production
of unsuccessful items also can stop without the need to replace all of the associated machinery
and processes.

This flexibility is considered a major advantage in many situations. There is such a wide range of
goods and production scales possible that one system is often sufficient for a range of products
and specific designs.
Aside from the unique benefits of batch production, many of the benefits of industrial and
commercial production also apply. For instance, producing large quantities of a product often is
more cost effective. Reductions in time and cost per product are amplified by the flexibility of
batch system. Labor requirements also are potentially reduced because a smaller number of
workers can produce batches of products. As there

3. Identify and explain any two operations competitive strategies that

Cadbury Schweppes can implement.
Differentiation
A differentiation strategy seeks to develop a competitive advantage through supplying and
marketing a product that is in some way different to what the competition is doing, Cadbury
Schweppes can have for milk n coco in there chocolate to improve the quality taste. If developed
successfully this strategy can potentially reduce price sensitivity and improve brand loyalty from
customers.
Focus strategy
This strategy recognizes that marketing to a homogenous customer group may not be that
effective a strategy for the products Schweppes is selling. Instead the Cadbury Schweppes should
focuses its marketing efforts on a different selected market segments. That is, identify the needs,
wants and interests of the particular market segments and customize marketing techniques to
reflect those characteristics.
Innovativeness
Ability to introduce and incorporate new ideas into products and processes
Quality and dependability
Producing a product which meets (or exceeds) customer expectations
Consistent quality -dependability
Flexibility
The ability to respond to rapid changes in customer demand and requirements for existing
products or services.
Product flexibility - quickly introduce new products or ability to make rapid design changes to
existing products
Process flexibility- Volume flexibility, Schweppes should be highly flexible in increasing or
reducing product units.
Delivery
The ability to meet requested and promised delivery schedules.
Short lead time or fast delivery-speed
On-time delivery-reliability
Speed in developing and introducing new products or services