production

• what does the production method depend on?

  • cost
  • volume
  • quality
  • skills of the workforce
• what is job production?

  • single items, usually to the buyers specification, are made using job production
  • produces unique products which are made one at a time
  • it is labour-intensive and produced by skilled workers
  • for example, wedding dresses, tailor-made suits, buildings, bridges, ships
• benefits of job production..

  • results in high quality products that are matched to customer needs
  • employees can be highly skilled and have interesting and challenging jobs -> increases motivation
  • design is flexible and can adapt to customer needs
• drawbacks of job production

  • methods can take a long time to make compared to goods made with mass production
  • prices are also likely to be higher, as skilled workers command higher payments for their time and expertise
• what is batch production?

  • involves manufacturing a limited number of identical products
  • each stage of the production process, work will be completed for the whole batch before the next stage has begun
  • for example, a typical industry is baking but is also used by potters and furniture manufacturers
• benefits of batch production

  • lower unit costs and higher outputs than job production
  • employees are likely to be semi-skilled
  • can be a reliance on capital investment
  • allows businesses to aim at niche markets, through the use of the same assets or capital equipment to produce a range of goods
• drawbacks of batch production

  • time is lost when machines have to be reset for new production
  • the business may not be equipped to deal with large scale orders
• what is flow/ mass production?

  • involves the production of products on production lines
  • it is a continuous process, with the product flowing from one stage of production to the next
  • allows identical products to be made in large volumes
  • the process is broken down into a number of small, simple tasks enabling machines robots to be utilised
  • much faster than job or batch production, business meets the demand of large quantities
• benefits of flow/ mass production

  • since workers can be unkilled or have skills limited to particular simple tasks, labour costs can therefore be lowered
  • often large amounts of capital investment involved through high set up costs
  • unit costs are low -> benefit from economies of scale, thereby reducing costs
• drawbacks of flow/ mass production

  • due to unskilled and underpaid workers, motivation can be difficult
  • production line machines/ robotics can be very expensive
  • method does not allow for a wide product range -> can limit target market
• type of production depends on: ...

  • the product being produced
  • the cost of labour
  • the cost of capital
  • the availability of money for investment
  • technology
  • skills of labour
  • the size of the market
  • customer requirements