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Business Studies - 7115

Main Methods of Production

Paper 1 & 2

Main Methods of Production

Features, Benefits, and Limitations of Job, Batch, and Flow Production 

There are three methods that are commonly used in production.

Job Production

In job production, only a single product is made at a time.

Job production is commonly done where the products are made specifically on the order. We can have an example of a father who orders to prepare a cake for his son’s birthday. The bakery will prepare a cake specifically for that person to fulfill his requirements.

Sometimes, a factory owner needs machinery for a specific purpose. The manufacturers of machinery make machinery to fulfill the need of other businesses. The machinery manufacturer will make machinery according to the specifications of the factory owner. This is an example of a single job done for one person. A tailor-made suit or a computer program for a specific purpose are also examples of job production.

Advantages


It is good when personal services are being offered.
The exact requirements of customers are met at job production.
Most of the time the workers perform more varied tasks that increase employee motivation.
It is also used for high-quality goods so that the higher price can also be charged.

Disadvantages 


In job production, skilled labor is often required to perform different tasks.
The cost increases as most of the jobs are labor-intensive.
In job production, sometimes production takes a long time.
Products are made to order so that it is difficult to correct if any error occurs.
The purchase of material is according to the order so that it leads to the higher cost of production.

Batch Production

In batch production, one product is made in quantity and after that, another product is made in quantity.

We can have an example of a bakery that prepares bread. The manufacturing unit of the bakery will not prepare a single bread but a batch of 50 or 100 pieces of bread at a time. After that, the production unit of the bakery will make small size pizzas. Whether it is bread or pizza, everything will be made in batches.

Another example of batch production is the manufacturing of jeans in a factory. A factory prepares a batch of 500 jeans. The size of all jeans is the same according to the requirement of a customer. 

Advantages


There is flexibility in batch production and the production can be changed from one product to another product.
It also gives variety to the workers when they perform the job.
The variety of products can be made so there will be more choices for consumers in batch production.

Disadvantages


Batch production is an expensive method as there are semi-finished or finished goods that will need to be moved.
Between production batches, the machines are reset so that the production time increases.
A warehouse will be needed to stock the products that also increases the cost. 

Flow Production

Inflow production, a product that is produced in large quantities as it is a continuous process. It is also known as mass production.

It is called flow production because there are products that flow down on the production line. 

In inflow production, the main ingredients are put at one end and then the products are moved down. When products are moved down, the other parts are also added. When the production line is finished, the product is ready for sale. From flow production, we can have common examples of packaged milk and juices. Besides that, cars and televisions are also common examples of flow production. 

Advantages


In flow production, there is mass production possible so that the production cost is low that leads to low prices of the products.
The high output of standardized products is possible.
It is capital intensive production where labor cost is reduced and efficiency is increased. 
There are few jobs that are done repeatedly by the laborers so that less skilled laborers can work here with little training.
The low average per-unit cost leads towards a low price for consumers that results in high sales.
Through an automated production line, the 24-hour operation is possible.
There is no need to move goods from one part of the factory to another so that the time is saved in this method.    

Disadvantages


There is little job satisfaction that leads to the demotivation of the employees.
Storage requirement is important inflow production so that the cost of production becomes high.
There is huge capital required to set up the production line.
In case if one machine is broken down, all the production process will have to be stopped. 

Selecting an Appropriate Production Method

Although, all the methods of production are popular among producers and manufacturers they have to choose what is better for them. 

If you are a small bakery owner and takes orders from individual clients, the process of job production is better for you. In the same way, if a bakery owner sells different items like bread etc. it is better to go for batch production.

If a businessperson is running a factory where juices and soft drinks are prepared, it is better for him to go for flow production as his production is not for specific people but everyone can buy juices so that his production is for masses. Flow production is also known as mass production.  

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