Operations
Methods/Types of Production
Batch Production
• Groups of similar products made on the same
production line
• Products can change between batches eg from
bread to cakes in a bakery
Advantages
• A range of products can be produced which appeals
to more customers and increase sales
• Lower wages as staff need fewer skills as batch
production uses machinery
Disadvantages
• Repetitive work may result in bored, demotivated
staff
• Problems with machines can cause halt in
production
• Delays from changing machines to allow different
products to be made
Flow Production
• Similar to batch but identical products made all the
time on a production line
Advantages
• Low unit costs due to high production levels
• Economies of scale – technical, financial
• Capital intensive – largely operated by machines,
robots, computers so less staffing issues
Disadvantages
• Machines breaking down can halt production
• Work can be boring for staff leading to mistakes and
absence
• Unable to change production if change in demand
• Standard product may not suit all customers and
limit sales
Job Production
• One product is made at a time
• Product is unique and labour intensive
• Examples include jewellery, roads, football
stadiums, paintings, boats
Advantages
• Organisations can produce products to meet
exact customer requirements:
 this will mean increased customer satisfaction
 a higher price can then be charged.
• Allows the customers to change the design
during the process which allows for alterations
to meet customers’ needs
• The work is not repetitive and as such the
employees will be more motivated with
increased job satisfaction.
Disadvantages
• The wages paid will need to be higher to reflect staff
skills and this will increase the overall final price of
the product
• There can be higher than average research costs
which again will be reflected in the price charged to
the customer
• Time to make product can be lengthy and this
means that customers cannot simply walk in and
purchase the product.
Which Method of Production
used depends on
• The skills of the workforce – where low skilled
labour is
employed, a mechanised process may prove
more effective
• The finance that the organisation has available
• The technology available to be used in the
production method
• The size of the business
• The actual product being made
• The number of the product required for the
market
• Standard of quality required

36. Methods of Production

  • 1.
  • 2.
    Batch Production • Groupsof similar products made on the same production line • Products can change between batches eg from bread to cakes in a bakery
  • 3.
    Advantages • A rangeof products can be produced which appeals to more customers and increase sales • Lower wages as staff need fewer skills as batch production uses machinery
  • 4.
    Disadvantages • Repetitive workmay result in bored, demotivated staff • Problems with machines can cause halt in production • Delays from changing machines to allow different products to be made
  • 5.
    Flow Production • Similarto batch but identical products made all the time on a production line
  • 6.
    Advantages • Low unitcosts due to high production levels • Economies of scale – technical, financial • Capital intensive – largely operated by machines, robots, computers so less staffing issues
  • 7.
    Disadvantages • Machines breakingdown can halt production • Work can be boring for staff leading to mistakes and absence • Unable to change production if change in demand • Standard product may not suit all customers and limit sales
  • 8.
    Job Production • Oneproduct is made at a time • Product is unique and labour intensive • Examples include jewellery, roads, football stadiums, paintings, boats
  • 9.
    Advantages • Organisations canproduce products to meet exact customer requirements:  this will mean increased customer satisfaction  a higher price can then be charged. • Allows the customers to change the design during the process which allows for alterations to meet customers’ needs • The work is not repetitive and as such the employees will be more motivated with increased job satisfaction.
  • 10.
    Disadvantages • The wagespaid will need to be higher to reflect staff skills and this will increase the overall final price of the product • There can be higher than average research costs which again will be reflected in the price charged to the customer • Time to make product can be lengthy and this means that customers cannot simply walk in and purchase the product.
  • 11.
    Which Method ofProduction used depends on • The skills of the workforce – where low skilled labour is employed, a mechanised process may prove more effective • The finance that the organisation has available • The technology available to be used in the production method • The size of the business • The actual product being made • The number of the product required for the market • Standard of quality required