Business studies GCSE-Production methods advantages and disadvantages

A single product e.g. building a house. One item is made before the next is startedSmall firms opperating a service would use jobbing method such as a plumber as each customer has different needs.

Workers are likely to be being paid on peice rate.

Advantages:

• Each peice is made to the customers specific requirments
• no risk of having too much stock
• quality of the goods is very high
• Job satisfaction for the workers is higher
• The design is flexible and can changeDisadvantages:
• Products are very expensive
• work is very time consuming
• The advantages of economy of scale are lost

making a batch of products at a time not just one product e.g. bread. Is used to meet group orders

Advantages:

• Workers may specilise to some degree
• labour costs are reduced the the final price is lower
• machinery can be used
• production is faster
• begins to take advantages of economies of scale

Disadvantages:

• Work is less satisfactory, it can be repetative
• more space is required for work and storage
• larger stock of raw materials must be kept
• machines may have to be re set between batches which could lose time
• if something goes wrong the whole batch is lost

Products get made as they move along a conveyer belt e.g. car manufactoring. Identical and standersised products are produced on an assembly line

Advantages:

• The final product is inexpensive. large quantities can be manufactured. The quality of the product is as standard
• Machines are used so labour cots are reduced
• unskilled wages so this also reduces costs. assembly lines can run continuously. production is fast. takes all the advantages of economies of scale

Disadvantages:

• The work is repetative and boring. There is an increased risk of accidents
• employee motivation are low. the products are all identical
• large capital investment is required. larger buildings are usually needed
• large stocks or raw materials are needed. if machinary breaks down it can halt production

Just in time method

• Products are manufactued just in time for them to be sold
• This prevents large storage of stock
• The raw materials that are needed are delivered to the manufactorer just in time to be used so there is no pile up of stcok

Advantages:

• Capital is used very effectivly
• warehousing is not needed for storage
• If faults occur in the supplies the business doesnt have a large amount of faulty items
• there is no waste of having exessive stock
• the finished product should be cheaper for the customer to buy

Disadvantages:

• The business is dependant on having an effective ordering system
• Production could be haulted if the wrong or faulty products are delivered at the last minute
• It puts alot of pressure upon the suppliers
• The company and the suppliers must work closely together with good communication

This would be used in flow manufactoring, each worker is given a small task to do with in the flow to get the end product, this would be used for example in a toy manufactoring assembly line.

Advantages:

• Each worker is very practised in a certain task
• lengthly training is avoided as they only need to be quickly trained for a small task
• the work is fast so the cost per unit of production is reduced
• reduced costs can be reflected in the price the customers get
• lower prices will raise sales and profit
• time is saved because workers do not have to move between jobs
• tools and machinery are used economically because each worker will only need the tools which are required for a small function

Disadvantages:

• The work can be monotomous and boring
• Bored workers could result in accidents
• its differecult for workers to have pride in their work as the don't see the finished product
• delays or strikes in one sections can cause production to stop
• workers can feel isolated from eachother
• redundant empoyees would find it hard to get a job as they have been very narrowly trained.