Unit 4 Operations · Free revision notes
4.1.4 Production methods
Last updated 20 November 2023 · ~1 min read
Production is the process involved in making or manufacturing products. A business will add value to raw materials with the aim of making a profit.
Job Production
One at a time, custom and handmade.
Examples: Wedding Dresses, Bespoke Jewellery.
Advantages
- Bespoke, high-quality products creating USP
- Simple and cheap to set up
- Products are unique to customer needs
Disadvantages
- Extremely Labour intensive
- Long to produce
- Expensive unit cost
Batch Production
Groups made together (white rolls, brown rolls, gluten free).
Examples: Bakers Batch of Rolls.
Advantages
- Lower unit costs than job
- Offers some variety of products
- Production is flexible as different batches can be made
Disadvantages
- Repetitive production line — efficiency may decrease over time
- Higher start-up costs than job
Flow Production
Mass-produced, standardised and consistent.
Examples: Soda, Canned Foods.
Advantages
- Low labour costs
- Large number of units produced
- Economies of scale — bulk buy raw materials
- Low unit costs
Disadvantages
- High startup costs for machinery and production line
- Low employee motivation — employees usually doing the same job on the production line
- Issues in one part of the production could affect the entire process
- Ongoing maintenance costs
- Typically, lower quality than job
Mass Customisation
Mass-produced then customised.
Examples: Cars, Motorised Parts, Kitchens.
Advantages
- Advantages of flow
- Can be customised during the production process — adds a USP
Disadvantages
- Disadvantages of flow
- Extra costs
- Additional step on production process to customise (such as a different car interior cloth -> leather)
Test yourself
There is a quiz for this spec point in the Revision Ninja course, with instant feedback and an explanation on every question. You need an account to open it.