Entrepreneurs need to decide which production method is best for them. Good customer service is valuable and can lead to increased sales.
Job, batch and flow production
Production is about creating goods and services. Managers have to decide on the most efficient way of organising production for their particular product.
There are three main types of production to choose from:
- Job production where items are made individually and each item is finished before the next one is started. Designer dresses are made using the job production method.
- Batch production where groups of items are made together. Each batch is finished before starting the next block of goods. For example, a baker first produces a batch of 50 white loaves. Only after they are completed will he or she start baking 50 loaves of brown bread.
- Flow production where identical, standardised items are produced on an assembly line. Most cars are mass-produced in large factories using conveyor belts and expensive machinery such as robot arms. Workers have specialised jobs, for instance, fitting wheels.
Choosing a production method
The best method of production depends on the type of product being made and the size of the market. Small firms operating in the service sector, such as plumbers, use job production because each customer has individual needs. Niche manufacturers of items such as made-to-measure suits would also use job production because each item they make is different.
Batch production is used to meet group…