Each business is unique and therefore it needs specific approach.
There are three main methods of production.
1) Job production.
Products are made specifically to order.
Each order is different and may never be repeated.
For example,
Advantages.
Disadvantages.
1) Job production.
Products are made specifically to order.
Each order is different and may never be repeated.
For example,
- Wedding cakes
- Kitchen design
- Events
Advantages.
- The product meets the exact requirements of the customer.
- Workers have more varied jobs, which can increase motivation and job satisfaction.
Disadvantages.
- Skilled labour often has to be used which
2) Batch production.
Similar products are made in groups or batches.
A certain number of one product is made and then a certain number of another.
For example:
l. A baker may bake a batch of bread and then bake fruit pies.
2. A clothing manufacturer may produce batches of different size trousers.
Advantages.
Disadvantages.
Similar products are made in groups or batches.
A certain number of one product is made and then a certain number of another.
For example:
l. A baker may bake a batch of bread and then bake fruit pies.
2. A clothing manufacturer may produce batches of different size trousers.
Advantages.
- Production may not be affected too much if machinery breaks down (could produce other goods while machinery is fixed).
- Workers still get some variety to jobs.
Disadvantages.
- Space will be needed for the stocks of raw materials and components. For example, if a furniture manufacturer is producing chairs, components for the tables will be needed for when they are ready to produce tables.
3) flow production.
Large quantities of the product are produced in a continuous process.
It is sometimes called mass production as there will be a large amount of standard quality product "flowing" off the production line.
Examples: Televisions, packaged foods, cars etc.
Advantages.
Disadvantages.
Large quantities of the product are produced in a continuous process.
It is sometimes called mass production as there will be a large amount of standard quality product "flowing" off the production line.
Examples: Televisions, packaged foods, cars etc.
Advantages.
- Opportunity to use capital intensive production ie machinery.
- As output increases, fixed costs of machinery are spread over more
Disadvantages.
- Can be very boring for workers and they will have little job satisfaction.
- If one machine breaks down the whole production process will have to be stopped until it can be repaired.
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