Scale of Production





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Scale of Production 1


  • High cost product which is tailor made for a customer
  • Made to exact personal specifications
  • High skilled crafts person ensuring a high quality product
  • Labour intensive and time consuming
  • Expensive


  • Flexibility in adapting production to another product
  • Fast response to market trends
  • Very good economies of scale in bulk buying materials
  • Lower unit cost than one off produced products
  • Poor production plannign can result in large quantities of products being stored
  • Frequent changes in production can cause costly retooling
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Scale of Production 2


  • Highly automated and efficient manufacturing process
  • Rigorous quality control ensures identicle goods
  • Excellent economies of scale in bulk buying materials
  • Increased production means that the set up costs are quickly recovered
  • Low unit costs
  • Reduced labour costs
  • High initial set up costs due to expensive machinery and tools
  • Inflexible, cant respond to market trends quickly


  • Same as mass production
  • Extremely low unit cost
  • Runs continuously
  • Very little flexibility
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