Cell production (A level BS)

From WikiTextbook

A method of organising production around teams is called Cell production. Often, a product will be produced on a production line. However, cell production means the process is divided into a series of different stages undertaken by teams or cells. Therefore, each team is given the responsibility for a stage in the production process.

The management may choose to incorporate this production style due to the factory not operating at full capacity utilisation. Also, if the workers suffer from low morale it is unlikely that they would be working to their full potential. Furthermore, cell production makes operations more efficient compared to other types of production, such as batch; which can be time consuming with the workers having to travel far distances just to pass partially finished products along the line.

Cell production can increase the productivity of the company due to its operation being more efficient. This can benefit the workers, as they are able to produce more goods and if their method of payment is piece rates they will receive a greater income. However, with workers being paid more, would mean that labour costs for the company would be far greater, which may limit the profitability of the company. Also, more raw materials would be required to cope with the productivity; adding to costs.

Workers can benefit further from the shop floor change as they would be working in close groups, which means they wouldn’t have to walk far and this can contribute in motivating them as their job is more enjoyable.

Even though often it is a wise move to use cell production within a business, it can cause competition between cells which can create an unhealthy working condition. Although there can be an advantage of this as it can improve the standard of work and in turn the quality and speed at which the product is produced.