Methods of Production

1. JW operations 2008 1
METHODS OF PRODUCTION
zBusiness must decide on the most suitable method of
production. The objective is to minimise the cost per unit, ie
productive efficiency.
zWhich method?
Job batch flow

2. JW operations 2008 2
JOB PRODUCTION
zProduction of a single product at a time
zsmall number of units required
zEntire job is completed
eg birthday cake, dental treatment
zfound both in the manufacturing and service industries
zbecause number of units produced is small, production process
is highly labour intensive
zworkforce usually skilled craftsmen
zmany small businesses start this way.

3. JW operations 2008 3
JOB PRODUCTION
zADVANTAGES
zCan produce unique “one-offs”,
specification can constantly be
modified
zworkers more likely to be
motivated, tasks require high
degree of skill and expertise.
Work more demanding and
interesting
zorganisation is simple,
communication, co-ordination,
supervision and inspection can
be carried out.
zDISADVANTAGES
zlabour costs high
zmay be expensive to buy all the tools
and equipment necessary
zlead times can be lengthy
zselling costs may be high
zOnce demand for a firm’s product
rises, job production may become
costly. Firms may prefer to use a
method more suited to producing
large quantities.

4. JW operations 2008 4
BATCH PRODUCTION
zUsed when demand for a product is regular rather than a ‘one-
off’. An example might be a bakery producing bread.
zProduction is broken down into a number of operations
za particular operation is carried out on each batch before
moving to the next stage.
zA great number of products are produced using this method,
particularly in the manufacturing of components and in food
processing.

5. JW operations 2008 5
BATCH PRODUCTION
zADVANTAGES
zFlexibility - each batch can be
changed to suit customer
requirements
zemployees can concentrate on
one operation rather than whole
task
zstocks of partly finished goods
can be stored and completed
when demanded by individual
customers
zDISADVANTAGES
zcareful planning and co-
operation required or machines
may lie idle
zworkforce may be less
motivated due to repetition
zif batches are small then unit
costs are high
za lot of money could be tied up
in work-in-progress

6. JW operations 2008 6
FLOW PRODUCTION
Production is organised so that different operations can be carried
out one after the other, in a continuous sequence.
The main features are as follows:
zlarge quantities are produced
za standardised product is made i.e all the same
zsemi-skilled workforce
zlarge amounts of robotics, machinery and equipment (capital
intensive)
zlarge stocks of raw materials and component parts are required

7. JW operations 2008 7
FLOW PRODUCTION
ADVANTAGES
zunit costs are reduced
zthe process can be highly
automated, many operations
carried out by robots and
other types of machinery
zQuality systems can be built
into production
DISADVANTAGES
zSet up costs are high
zproduct is standardised
zworker motivation can be low
zbreakdowns can prove costly
zSupply may exceed demand

8. JW operations 2008 8
zSome businesses may use a
combination of the job, batch and
flow,
zeg a brewery may make batches of
special ale but it is then sent to a
bottling plant where continuous
flow is used.

9. JW operations 2008 9
Questions
zWhat is the main objective when choosing the method of
production? (1)
zDescribe the process of job production, it’s most suitable application
and its advantages and disadvantages. (8)
zDescribe the process of batch production, it’s most suitable application
and its advantages and disadvantages. (8)
zDescribe the process of flow production, it’s most suitable application
and the advantages and disadvantages. (8)
zSuggest why an organisation might use a combination of productions
methods. (1)