Job or Batch Production

Question 1

Job Production

Answer 1

Items are made individually and each item is finished before the next one is started

Question 2

Batch Production

Answer 2

Groups of items are made together, each batch is finished before starting the next block of goods

Question 3

Advantages of job production

Answer 3

Maximises customer satisfaction as products are made to order
Job variety= motivated workers
Little storage needed
Charge higher prices

Question 4

Disadvantages of job production

Answer 4

Customers have to wait for their item
Skilled workers are expensive
Can’t benefit from production economies of scale

Question 5

Advantages of batch production

Answer 5

It may no longer be necessary to use the Swedish factory, so they benefit from the British Brand
Increases productivity
Economies of scale- can either decrease price and be more competitive, or get higher profit margins

Question 6

Disadvantages of batch production

Answer 6

May reduce sales as it’s not bespoke
Customers will only buy if competitively priced
Reduces job variety, reducing motivation (could introduce job rotation?)

Question 7

Advantages of a large range of products

Answer 7

Target different parts of the market- increasing sales and market share
Spreads risk
Motivates staff as there’s variety

Question 8

Disadvantages of a large range of products

Answer 8

Increases complexity
Makes quality control more difficult
Increases storage costs