Methods of production

• Job production = production of a single product for a single customer, with the product being made to the customer's exact specifications
• batch production = whereby a group of identical products are produced simultaneously In large amounts
• flow production = production of goods and services in a continuous process, with no interruptions
• cell production = a form of team working and helps ensure worker commitment, as each cell is responsible for a complete unit of work
• Productivity = amount of output per worker
• factors influencing productivity =

  • number of workers/machines
  • number of products
  • quality of raw materials
  • employee motivation
  • skills/education/training
  • investment in capital
• Efficiency = How effectively a company generates products and services related to the amount of time and money needed to produce them
• factors influencing efficiency =

  • standardisation of the production process
  • investment in capital
  • employee motivation
• labour intensive production = a business that relies on a large number of workers to produce a product
• capital intensive production = Production which is done mainly by machines.
• Advantages of batch production:

  • reduced unit costs
  • quicker quality control
  • higher efficiency
  • resource optimisation
• Disadvantages of batch flow:

  • limited flexibility
  • can have high latency
  • higher inventory costs
  • increased setup times/changeovers
• Advantages of cell production:

  • reduced defects
  • increased efficiency
  • better responsiveness
  • reduced lead times
• Disadvantages of cell production:

  • limited scalability
  • dependency on workers
  • low resistance to change
• Advantages of job production:

  • customer requirements handled
  • high quality = high price
  • motivated employees = more job satisfaction
  • flexible production method
• Disadvantages of Job production:

  • time consuming
  • inventory challenges
  • skilled labour requirement
  • limited economies of scale
• Advantages of flow production:

  • reduced human error - efficient
  • specialised at their role/job = less training
  • cost/unit production reduced (improved work/material flow)
  • manufacture large quantities
• Disadvantages of flow production:

  • training
  • interruptions =delay whole line = loss production time = delay to customer = could have lots of waste =down time
  • need investment =maintenance, depreciation =obsolete, manage robot= training & safety gear
  • long set up/reliant on high quality machinery
• Labour/capital productivity:

  • output/number of workers or capital
• Capital intensive business

  Advantages:

  • Low-cost production where output is high
  • Machines are usually consistent and precise
  • Machines can run without breaks


  Disadvantages:

  • Significant set-up and maintenance costs
  • Breakdowns can severely delay production
  • May not provide flexibility in production
• Labour intensive business

  Advantages:

  • Low-cost production where labour costs are low
  • Provides opportunities for workers to be creative
  • Workers are flexible (e.g. they can be retrained)


  Disadvantages:

  • Workers may be unreliable and need regular breaks
  • Incentives may be needed to motivate staff
  • Training costs can be significant