chapter 15 production options

Question 1

Job production

Answer 1

This involves making the products one at a time, by hand.
Each product is individual and unique and is produced for a specific customer, not for stock.. It is a once off order. eg hand made wedding dress.
High level labour skills are needed, training and prior experience required.
Expensive due to labour costs and quality materials used

Question 2

Batch production

Answer 2

Goods are produced in batches of identicsl products in one production run. Eg, baking of bread, Irish Times printing newspapers.
Production is not continuous- the batch is produced and production switches to another batch. The goods are produced and held in stock.
People employed are skilled or semi skilled.
A certain level of automation is used which lowers costs. This is due to economies of scale (the more products you make at once, the lower the cost).
Less expensive than job produced products.

Question 3

Mass production

Answer 3

Produces large amounts of similar products. There is non- stop continuous production of the same products eg biscuits in a factory. Only suitable for products that are in high demand. The goods are produced for stock.
A high degree of automation is used which results in low labour costs. The company enjoys huge economies of scale.
Most of the staff are low skilled.
Products are cheap and not of a high quality.