Production Processes
An important area of a business is operations A part of the business responsible for producing products.. This functional area is in charge of taking inputs and turning them into outputs. This is known as the production process.
Methods of production
Job production
Job production occurs when a business produces products that meet the specific requirements of the customer. Each time a new product is made, changes may need to be made to the production process. Some examples of job production may include made-to-measure clothes, handmade crafts and bridges.
Some advantages of job production:
- the business may be able to charge a higher price for the product
- products are likely to be high quality
- the variety of work may mean employees are less likely to become bored and demotivated at work
Some disadvantages of job production:
- expensive to produce as each product is different
- employees need to be skilled and may require training
Flow production
Flow production occurs when a business makes large numbers of identical products on a continuous production line. Some of examples of flow production include chocolate bars, televisions and bottled drinks.
Advantages of flow production:
- the business is able to produce large volumes of products
- employees can specialise When an employee has responsibility for a limited number of tasks and therefore becomes an expert through repetition. in a small number of tasks. This is also known as division of labour
- producing in large quantities reduces the cost per unit
Disadvantages of flow production:
- High initial costs of machinery to set up the business
- A lack of flexibility, as all products need to be identical or fairly similar
- Employees may become bored or demotivated due to their limited range of tasks
- Large investment into things like expensive machinery leads to increased risks