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Methods of Production Job, Batch and Flow production are the three main ways a firm could choose to make its product(s). Each method varies greatly in how they actually handle the production process but the aim of each is the same: to transform in puts into outputs in the most efficient way. Job Production Often job production involves one-off, unique items such as those made by an architect or wedding dressmaker. Job production can involve:- 1. a single worker or group of workers handling a small scale job involving little or no technology. examples of jobs that require a single worker or low technology inc:- Hairdressers Tailoring Painting and decorating Plumbing and heating repairs in the home 2. Jobs can also be complex requiring lots of technology. High technology jobs are much more complex and difficult. These jobs need to be very well project-managed and require highly qualified and skilled workers. Examples of high technology / complex jobs include: Film production Large construction projects (e.g. the Millennium Dome) Installing new transport systems (e.g. trams in Sheffield and Manchester) Advantages The advantage of job production is that:- each item can be altered for the specific customer and this provides genuine marketing benefits. A business is likely to be able to ‘add value’ to the products and possibly create a unique selling point (USP), both of which should enable it to sell at high prices. Disadvantages Job production is an expensive process as it is labour intensive (uses more workers compared to machines). Batch Production Batch methods require that a group of items move through the production process together, a stage at a time. e.g. a bakery bakes different types of loaves in batches Batch production is a very common method of organising manufacture. Good examples include: Production of electronic instruments Paint and wallpaper manufacturers Advantages It is cheaper to produce a number of each item in one go because machines can be used more effectively, the materials can be bought in bulk and the workers can specialise in that task. There are two particular advantages of workers being able to concentrate their skills:- They should become more expert at their tasks, which will in turn increase productivity (output per worker). This will lower costs, as fewer workers are needed to produce a set amount. Better quality products should be produced as workers are more familiar with the task and so can find ways of improving it. Disadvantages Batch production requires very careful planning to decide what batch will be produced when. Batch methods can also result in the build up of significant “work in progress” or stocks (i.e. completed batches waiting for their turn to be worked on in the next operation). This increases costs as it takes up space and raises the chance of damage to stock. Flow Production Flow production involves a continuous movement of items through the production process. Therefore, the time taken on each task must be the same. Flow production (often known as mass production) involves the use of production lines It is best used when firms are looking to produce a high volume of similar items. Some of the big brand names that have consistently high demand are most suitable for this type of production: Heinz baked beans Kellogg’s corn flakes Mars bars Ford cars Advantages Flow production is capital intensive. Ie uses a lot of machinery, automation and robotics. The advantage of this is that costs are lower because:- production can continue at night and over weekends expensive labour costs are avoided firms benefit from economies of scale, which should lower the cost per unit of production. Disadvantages The main disadvantage is that with so much machinery it is very difficult to alter the production process. This makes production inflexible and means that all products have to be very similar or standardised and cannot be tailored to individual tastes. |