Production processes - OCRProduction processes

To compete with rival businesses, production costs must be kept low so that products can be priced competitively. The ability to do this is affected by the production processes and technology used.

Part ofBusinessOperations, finance and influences on business

Production processes

Businesses providing can choose from three different types of production process. These are , and .

Three different types of production processes, job production showing a tailor, batch production showing a baker with loaves of bread and flow production showing an operative on milk production line.

Job production

Job production is when individual products are made one at a time to meet specific customer preferences. An example would be tailor-made suits, which are made specifically to each customer’s measurements and tastes.

Batch production

Batch production involves making a set quantity of identical products. This quantity is known as a ‘batch’. The batch size could be ten, 10,000 or a million identical products. An example would be a bakery making a batch of 100 white bread rolls and then making a batch of 50 wholemeal bread rolls.

Flow production

Flow production involves continuously making identical products. This allows the production process to be heavily .

Advantages and disadvantages of each type of production

Type of productionAdvantagesDisadvantages
JobHigh profit margins for bespoke productsHighly skilled staff are required, which increases costs
Employees may gain enjoyment from using their specialist skillsHighly skilled staff may not be available, which can make training staff very expensive
Customers get exactly what they want
BatchAble to make a variety of sizes or flavoursNot as flexible regarding customers’ tastes as job production
Can be partially automatedAs batch production is not fully automated, costs may be higher than in flow production
Can produce more products than job production
FlowAble to make far larger quantitiesIn competitive markets for similar mass-produced goods, profit margins can be very low
Consistency in production means products are identical, which means customers know exactly what they are buyingCustomers like products that are tailored to their specific preferences
Highly automated processExpensive to buy all the machinery needed for automation
Type of productionJob
AdvantagesHigh profit margins for bespoke products
DisadvantagesHighly skilled staff are required, which increases costs
Type of production
AdvantagesEmployees may gain enjoyment from using their specialist skills
DisadvantagesHighly skilled staff may not be available, which can make training staff very expensive
Type of production
AdvantagesCustomers get exactly what they want
Disadvantages
Type of productionBatch
AdvantagesAble to make a variety of sizes or flavours
DisadvantagesNot as flexible regarding customers’ tastes as job production
Type of production
AdvantagesCan be partially automated
DisadvantagesAs batch production is not fully automated, costs may be higher than in flow production
Type of production
AdvantagesCan produce more products than job production
Disadvantages
Type of productionFlow
AdvantagesAble to make far larger quantities
DisadvantagesIn competitive markets for similar mass-produced goods, profit margins can be very low
Type of production
AdvantagesConsistency in production means products are identical, which means customers know exactly what they are buying
DisadvantagesCustomers like products that are tailored to their specific preferences
Type of production
AdvantagesHighly automated process
DisadvantagesExpensive to buy all the machinery needed for automation
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The impact of production processes on productivity
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