Methods of 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

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.

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

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.

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

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.