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Production methods and productivity
Productivity
Batch production
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Batch production
When much of the
same
equipment is used to make small batches of
different
products, where the products made in each batch are
identical
to each other
Batch production process
1. Production is
stopped
2. Equipment is adjusted and
cleaned
(if necessary)
3. Next batch of
products
is made
Batch production
Used for businesses that have a
small
product mix and sell in
limited
quantities or for a limited time
Allows businesses to be flexible with their
output
Batch production vs job production
Productivity is higher than
job
production
Productivity is
lower
than
flow
production
Economies of scale
Batch production allows businesses to buy
raw
materials in
larger
quantities, which can lead to
lower
product prices
Batch production means businesses have the cost and inconvenience of having to
store
lots of raw
materials