Production methods Flashcards
Whats production?
Production is about creating goods and services. Managers have to decide on the most efficient way of organising production for their particular product.
What are the 3 main types of production?
Job production, Batch production & Flow production
What is job production?
Job production, where items are made individually and each item is finished before the next one is started. Designer dresses are made using the job production method.
What is batch production?
Batch production, where groups of items are made together. Each batch is finished before starting the next block of goods. For example, a baker first produces a batch of 50 white loaves. Only after they are completed will he or she start baking 50 loaves of brown bread.
What is flow production?
Flow production, where identical, standardised items are produced on an assembly line. Most cars are mass-produced in large factories using conveyor belts and expensive machinery such as robot arms. Workers have specialised jobs, for instance, fitting wheels.
How do the production methods used depend on the products being made?
The best method of production depends on the type of product being made and the size of the market. Small firms operating in the service sector, such as plumbers, use job production because each customer has individual needs. Niche manufacturers of items such as made-to-measure suits would also use job production because each item they make is different.
What are economies of sale?
The cost advantages of operating on a larger scale, eg buying more cheaply in bulk and reducing unit costs.
There is usually a trade off between unit costs and meeting specific customer needs. Flow production offers economies of scale and low costs for a one-size-fits-all product.
Whats an example of batch production?
Batch production is used to meet group orders. For example, a set of machines could be set up to make 500 size 12 dresses and then adjusted to make 600 size 12 dresses. Two batches have been made.
Whats an example of flow production?
Flow production is used to mass produce everyday standardised (all the same) items such as soap powder and canned drinks.
What do economies of sale lead to?
Economies of scale lead to lower unit costs and prices. Not many small manufacturers can afford the investment needed to mass produce goods. They instead opt for either batch or job production.
