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

Product is according to customers specifications
Multipurpose machinery is combined with skilled versatile labour.
There is no finished goods stock.
Workers are motivated as they carry out the variety of tasks.

Short production runs raise unit production costs.
Specialist equipments and skill labour might be needed which may cost more to the business.

 

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

Suitable for a wide range of nearly similar goods which can use the same machinery on different settings.
More variety for workers resulting in more job satisfaction.

Relatively short production runs result in higher unit costs.
Changeover between batches results in resources being ideal at times.
Versatile machinery and multi-skilled labour is still needed which might cost more.
Warehouse space is needed for raw material and finished goods.

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

Due to production in large quantities of standardized products, economies of scale are achieved.
Work in progress is at a low level.
Specialized labour with low level of skills is needed.
Mass production of standardized goods result in low average cost which means low prices for customers.

Large inventories of raw material to prevent stockout.
There should be a continuity of demand. If demand is varied this will lead to constant overstocking of finished goods.
Repetitive jobs can lead to boredom for the workers and thus less job satisfaction.
Cost of setting up production line is very high.

 

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