Methods of ProductionAS Business Studies

How are these products made?

How are these products made?For each of the products (Wembley Stadium, Coca-Cola,

Bread) answer the following questions:

1. How many of these goods will be produced?

2. How skilled will the workers need to be for the production process?

3. How much will it cost to produce just one unit?

4. Will the workers be interested in their work?

Job ProductionJob production is used to create one-off orders

or ‘jobs’ especially made for the purpose.

Batch ProductionIn batch production products are produced in

small or large batches.

Flow Production (Mass Production)Flow Production is a production line method,

where product is continuously produced, flowing from one stage of production to the next

Advantages of Job Production1. Meets customer´s exact needs

2. Products are of a high quality

3. Workers are motivated

4. Job organisation is easy

Disadvantages of Job Production1-Expensive

2-Requires a lot of tools, machinery and equipment

3-Lengthy lead times

4-High selling costs

Advantages of Batch Production-Flexibility

-Specialization

-Standardized

-Stockpile

Disadvantages of Batch Production 1 -Careful planning and co-ordination required

2- Subject to delays

3- Expensive complex machinery 4- Small batches mean high unit costs 5- Money tied up in work-in-progress

Advantages of Flow Production-Economies of Scale

-Machinery can replace labour

-Responds quickly to changes in demand so less need to stockpile

Disadvantages of Flow Production1. High set-up costs

2. Product needs to be standardised and cannot match individual customer needs

3. Poor motivation

4. Breakdowns are costly