Methods of production

AS Business: Oganising Production

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Job Production

Involves producing a single item to fit in with the specific needs of a customer. A single product is manufactured in its entirety before the firm goes on to produce another.

Advantages

  • A large increase in added value
  • Increased staff motivation
  • A high level of quality
  • Increased customer satisfaction

Disadvantage

  • Time-consuming production
  • Higher production costs
  • poor use of capital resources
  • Customers may have to wait
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Cont...

Advantages

  • A large increase in added value. The specialist nature and individuality means that customers are prepared to pay high prices.
  • Increased staff motivation. workers are oftern higly skilled and take great pride.
  • A high level of quality. the specification of the work is often set at a high level.
  • Increased customer satisfaction. Likely to encourage brand loyalty.

Disadvantage

  • Time-consuming production. Tends to slow down level of output
  • Higher production costs. Job is highly labour-intensive.
  • poor use of capital resources. is unlikly to use machinery the same way as other methods.
  • Customers may have to wait. Encourage some customers to look elsewhere.
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Batch Production

A whole group of items is produced together. These items move around the production process as a group, all must complete the process before moving on to the next stage.

Advantages

  • Faster that job production
  • Lower costs that job production
  • Greater ability to meet customer demand

Disadvantages

  • Lower motivation
  • Increased 'downturn'
  • Higher stock levels
  • Loss of individuality and quality
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Cont...

Advantages

  • Faster that job production. Alows firms to produce more quickly as producing goods in larger quantities
  • Lower costs than job production. Can benefit frm economies of scale and is likely to reduce overall costs
  • Greater ability to meet customer demand. Customers less likly to wait. linked with just-in-time.

Disadvantages

  • Lower motivation. Greater specialsation inthe prouction process may lead to lower morale.
  • Increased 'downturn'. a lot of stop-start is involved, due to constent changes.
  • Higher stock levels. stock needs to be held on site.
  • Loss of individuality and quality. requires a number of products to be produced to the same specification.
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Flow Production

Goods move through production in a continuous way. Used by firms that produce a high proportion of standardised products.

Advantages

  • Low Unit costs
  • High level of standardisation
  • Increased levels of output

Disadvantages

  • Inflexible production
  • Lack of worker motivation
  • Problems of breakdowns
  • High initial costs
  • Less worker responsibility
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Cont..

Advantages

  • Low Unit costs. labour cots will be relatively low. The process is likely yo be highly capital-intensive.
  • High level of standardisation. works well when multiple versions of the same product are produced.
  • Increased levels of output. High volume production pulse a high volume of sales is key to mass market success.

Disadvantages

  • Inflexible production. Not efficient when stopped and started again.
  • Lack of worker motivation. Can become demotivatied as are given few different tasks.
  • Problems of breakdowns. Could cause problems on the production line
  • High initial costs. It can be difficult to justify making such a large investment in the capital equipment.
  • Less worker responsibility. The quality of finished goods may be lower.
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Comments

Lucy

very imformative

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