The main methods of production Flashcards
Job Production
Each product is different and made to specific instructions by the consumer. e.g. tailor made suits, customizable birthday/wedding cakes
Advantages of Job production
-Workers have more varied job (They won’t become bored)
-Higher price can be charged for product
-Product meets requirements of the customer
Disadvantages of Job production
-Costs of production are high because skilled labour is used
-Product takes a long time to produce
-Products are made to order so any errors may be expensive for the company to fix
Batch production
Similar products are made in batches (e.g. batch of white shirts then another batch of green shirts are made)
Advantages of Batch production
-Gives more variety of jobs to workers
-Production can be easily changed from one product to another
-Gives consumers a variety of products (e.g. many colour shirts)
Disadvantages of Batch production
-Expensive to produce goods
-Machines have to be reset when changing from one batch to another which slows down production (e.g. change colour of shirts from white to green dye)
-Warehouse space is needed to store products
Flow production (Mass production)
Large quantities of identical products are produced on a continuous basis
Advantages of Flow production
-Goods are produced quickly and cheaply (economies of scale)
-Increased efficiency through use of machinery
-Less labour is needed (machines do the work)
-Automated production line means production can operate overnight
The nature of the product
– Unique products will require job production.
Disadvantages of Flow production
-Very boring for workers (same product over and over)
-Starting costs are high (expensive machines, big factory etc…)
-If a machine breaks down the whole production line may stop
-Expensive storage costs as they are lots of products
Size of the market
– Products with small number of customers mean job or batch production is used. Products with large amount of consumers = flow production should be used.
The nature of demand
– Small and infrequent demand by customers means job or batch production will be used.
The size of the business
– Small businesses tend to operate using job and batch production while large business may use flow production.
