1. Methods of Production
• Methods of production
• Production is at the heart of all industry and is the process of using
the resources of a firm to convert ‘inputs’ into ‘outputs’, which are
products or services desired by customers.
• Job production
• Job production is used to create one-off orders or ‘jobs’ especially
made for the purpose. This might be a relatively small job such as
bespoke suit or a sandwich made to order in a café, or it could be a
massive job such as a cruise liner or the Arsenal’s new stadium.
2. • Job production helps ensure that the product or service matches the
customer’s exact needs, as closely as the firm is able, because it is
literally ‘custom-made’. In many cases, skilled or specialised staff
make products of very high quality, or which have individual character
that might have less appeal if they were mass-produced.
• Job production helps ensure that the product or service matches the
customer’s exact needs, as closely as the firm is able, because it is
literally ‘custom-made’. In many cases, skilled or specialised staff
make products of very high quality, or which have individual character
that might have less appeal if they were mass-produced.
3. • Batch production
• As the name suggests, products are produced in small or large
batches. This process is useful to a firm that makes a number of
different variations of basically similar products. Examples would
include; a bakery, a car exhaust pipe factory or a toothpaste
manufacturer.
• If the sandwich shop mentioned above wanted to speed up
production, instead of making sandwiches to order, it might be able to
benefit by making the day’s sandwiches in batches of all the different
types and have them available for sale, pre-packed. In a factory that
uses flow production (see below), it is quite common for component
parts to be made in batches enough for a week’s production.
4. • Flow production
• This is a production line method, where product is continuously
produced, flowing from one stage of production to the next. Workers
and, increasingly robots, carry out individual repetitive tasks aiming to
work as quickly as possible without loss of quality. This is the method
pioneered by Henry Ford for his Model T car, and the efficiencies he
gained enabled him to produce large numbers of cars at low cost.
Any product made in high volumes will almost certainly be made on a
flow production line.
5. • This approach to production has close links with FW Taylor and his
‘Scientific school of management’ – Taylor’s motivational theories were
all about creating the workplace and forms of reward to maximise
efficiency. This in turn led to very boring work and contributed to
industrial unrest over the years where workers’ interests were
overlooked.
• More modern, lean production techniques have at least partly
recognised the fact that this type of work can be extremely boring,
and ideas such as cell production and quality circles can help improve
the workplace as workers become multi-skilled, take more
responsibility for quality and can contribute their ideas for
improvements.
6. • Flow production systems are typically capital intensive and it is
important to keep them running smoothly with high levels of capacity
utilisation, so that these high overhead costs are spread over as
many units as possible.
• Once set up properly, flow production lines can in some cases
produce millions of consistently high quality products.
7. • Cell production
• This is a form of flow production in which the line is separated into a
number of sections, each looked after by a group of workers called a
‘cell’. Cells take responsibility for work in their area, such as quality,
job rotation, training and so on. See notes on Lean Production for
more detailed discussion of Cell Production.