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 | 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 |
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 |
Due to production in large quantities of standardized products, economies of scale are achieved. | Large inventories of raw material to prevent stockout. |
