TEXTBOOK CHAPTER 23 PART I (4.2) OPERATIONS PLANNING WHAT IS OPERATIONS PLANNING? MARKETING FACTORS need to match supply with potential demand Must only market or advertise the quantity which could be produced by operations dept AVAILABILITY OF RAW MATERIALS Land, labour, capital enterprise OPERATIONS DECISONS The business must base production on the best location, nature of the production method and the level of automation TECHNOLOGY Firms now use digital technology and there two main forms i.e CAD and CAM COMPUTER-AIDED DESIGN (CAD) COMPUTER-AIDED MANUFACTURING (CAM) Processes in a CAM process are controlled by computers. Thus a high degree of precision and consistency can be achieved than a machine controlled by men The need for flexibility and innovation The need for flexibility and innovation Production methods Each firm must carry out production designing. Production design refers to the scheduling of production which involves organizing the activities in a manufacturing plant or service industry to ensure that the product or service is completed at the expected time. There are four basic ways of production design namely job, batch, flow production and mass customization JOB PRODUCTION BATCH PRODUCTION MASS CUSTOMISATION FLOW PRODUCTION