5.2 Production methods Flashcards
Methods of production
- job production
- batch production
- mass production
- cell production
Job production
Producing a one-off item specially designed for each customer.
Advantages of job production
- most flexible method, allowing output to be created to the specific requirements of the costumer
- due to its uniqueness and exclusivity, the production of the goods or services is of an exceptional standard
- premium price can be charged
- workers are likely to be highly motivated
Disadvantages of job production
- high labour costs, due to highly skilled and experienced employees
- limited opportunities for economies of scale
- long production times as the job production cannot rely on technologies used to mass production
Batch production
A method of production that involves producing a set of identical products, with work on each batch being fully completed before production switches to another batch, which may have slightly different specifications.
Advantages of batch production
- average costs of production are lower than if job production is used
- costumers have a greater choice, which is likely to lead to more sales
- reduces the risk associated with concentrating on the output of a single product
- suitable for making products when the level of demand for them is not enough to justify mass production
Disadvantages of batch production
- less flexibility for costumers, as they can only select from a standardized output
- greater need for capital expenditure
Mass/ flow/ process production
Different operations are continually carried out in sequence, with a very large output of standardized product, it relies on using an automated production process.
Advantages of mass production
- a business benefits from economies of scales
- lower labour costs, as fewer people need to be hired
Disadvantages of mass production
- no flexibility with mass production
- low profit margins, due to standardized output of mass produced goods and their relatively low prices
- flow/ continuous production requires effective stock management systems
- start-up costs are likely to be high
- technical breakdowns
- easily demotivated staff, as they perform unchallenging, unexciting and repetitive tasks
Cell production
A form of lean production technique that involves teams of people working on a certain section of the production, each team works on a significant part of complete unit of output within the overall production process.
Advantages of cell production
- there should be improvement of quality, because cells are responsible for and take ownership of quality assurance
- job rotation prevents demotivation
- involves team work - non-financial motivation
Disadvantages of cell production
- requires capital expenditure
- time consuming and costly to recruit and train suitable employees
