Method of Production

Job production is where a single product is custom made to a customers own specification. 

Bridges, wedding cakes and oil rig platforms are made using job production.

Advantages

• Firms can produce one off orders exactly to meet customer demand.
• A high price may be charged.
• Specifications can be changed by customers even if production has started.
• Workers are more likely to be motivated as there is a variety of work and skills required.

Disadvantages

• Expensive due to high skill of staff needed - therefore high wages
• High research and development, administration and transport costs.
• A wide variety of equipment/tools is required
• Lead times can be lengthy

Batch production is the production of groups of similar products. No item in a group goes to the next stage until all are ready.

For example, newspapers, bread

Advantages

• Batches can be changed to meet specific customer requirements
• Reduced need for costly, high skilled staff
• Machinery can be relatively standardised which reduces costs

Disadvantages

• Machinery/workers may sit idle between stages and between each batch unless there is careful planning
• Expensive machinery may be required due to staff being less skilled
• Stock levels may be high
• Staff may be less motivated as they repeat the same tasks in batches
• If batches are small, costs will still be high.

Flow production is a process in which production items move continously from one operation to the next. Each part of the process leads to the eventual production of the final product with the aid of machinery, to save labour costs.

Products are produced to a standard specification.

Cars, bottled products are examples...

Advantages

• Costs are spread over a large number of goods.,,therefore the cost per item is reduced (economies of scale achieved)
• Bulk discounts are likely to be gained in purchasing raw materials
• Huge quantities can be produced
• The process is automated which lowers labour costs and human error

Disadvantages

• Huge investment to set up is needed
• Individual customer requirements cannot be met
• Worker motivation may be low because of the repetititve nature of the job
• Breakdowns can be very costly.