5.1 Production Methods

Question 1

Job production

Answer 1

• Production of “one-off” products
• Focus on quality → premium price
• Market oriented
eg) custom-made cars

Question 2

Advantages of job production [5]

Answer 2

• High mark-up
• Clients get exactly what they want
• Motivates skilled workers
• Flexible
• Can establish special relationship with trend setters & role models

Question 3

Disadvantages of job production [4]

Answer 3

• Expensive
• Lack of knowledge of the client
• Time-consuming
• Need more skilled workers

Question 4

Batch production

Answer 4

• Standardised products made in large quantities (assembly lines)
• Market oriented: quality+affordability
• Careful planning needed for products to be interchangeable
eg) Car models with different features for each model, soccer uniforms (different numbers)

Question 5

Advantages of batch production [4]

Answer 5

• Economies of scale through batch production
• More choice for customers → more market share
• More organised than job production
• Able to cope with unexpected orders

Question 6

Disadvantages of batch production [3]

Answer 6

• Machines need to be recalibrated/retooled for different types → lose production
• Need to hold large stocks of work in progress (uniform shirts with no number)
• Need more number of workers

Question 7

Advantages of mass production / flow production [3]

Answer 7

• Only needs unskilled labour (for quality control+greater customisation) → low labour cost
• The system needs little maintenance once set up
• Able to respond to increase in orders quickly

Question 8

Disadvantages of mass production / flow production [4]

Answer 8

• High set-up costs
• The business is dependent on steady demand
• Inflexible system → may result in large stocks of unwanted products
• Demotivating job for workers