Methods of Production
Job Production
Job production involves producing single product at a time. Businesses which use a Job production produce each time a unique, non standard good that are made to order. Examples of Job production are ship building because each ship is made according to the customer’s specification, construction of bridges.
Advantages |
Disadvantages |
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Product is according to customers specifications |
Short production runs raise unit production costs.
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Batch Production
It involves manufacture of different versions of the same basic product in batches. For example producing soap in different fragrances. Unlike Job production there is a repetition of production.
Advantages |
Disadvantages |
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Suitable for a wide range of nearly similar goods which can use the same machinery on different settings. |
Relatively short production runs result in higher unit costs. |
Flow production
It involves mass production. Once work has been completed on one operation, the job moves on to the next without stopping. It is a continuous process of parts passing on from one stage to another until completion. The production of Coca Cola on a production is an example of flow production.
Advantages |
Disadvantages |
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Due to production in large quantities of standardized products, economies of scale are achieved. |
Large inventories of raw material to prevent stockout. |
Mass Customization
Mass Customization is the new paradigm that replaces mass production, which is no longer suitable for today’s turbulent markets, growing product variety, and opportunities for e-commerce. Mass customization proactively manages product variety in the environment of rapidly evolving markets and products, many niche markets, and individually customized products sold through stores or over the internet.
Mass customizers can customize products quickly for individual customers or for niche markets at better than mass production efficiency and speed. Using the same principles, mass customizers can 'Build-to-Order' both customized products and standard products without forecasts, inventory, or purchasing delays.
