Job Production
- Each product is made to order. The product is likely to be unique with one product being finished before the next is started.
- Job production often requires skilled workers who can do a variety of tasks.
- Job production may be used to make bespoke products such as – wedding cakes, made to measure suits, designer homes.
Advantages
- Product is unique so products can command a higher price.
- Product should be high quality as skilled workers are involved.
- Customer can request changes to the product specification
- Workers are motivated and engaged by their involvement.
- Product is not made until an order has been received.
- Skilled workers need high wages, pushing up costs of production.
Disadvantages
- Skilled workers need high wages, pushing up costs of production.
- Production takes longer to complete – customers may not be willing to wait and may go to a competitor who has produced batches for sale.
- Organisation may experience cash flow problems as they may have to wait until the job is finished before getting payment.
Batch Production
- Used to produce a group of similar products at once, with each batch moving through stages of the production process at the same time.
- In between batches, the product specifications can be changed eg size or flavour.
- Batch production allows greater use of machinery but workers may still be involved eg moving batches between each stage, cleaning and resetting machines between batches.
- Batch Production is often used to make food products (different flavours), clothing (different sizing), and construction (eg a housing estate).
Advantages
- Workers can specialise during the process, increasing productivity.
- More scope for using machines – bringing down average unit costs.
- Batches can vary in size or design, – meeting different customer requirements.
Disadvantages
- Time consuming to clean and reset machines between batches.
- If holding inventory of partly finished goods –the risks and costs of storage will be high.
- Some machinery and equipment may be under-used as it may be unused whilst waiting for the next batch to begin.
Batch Production
- Products are made continuously on a production line, with a different process carried out at each stage.
- Every stage on the production line will be in action simultaneously.
- Flow production can be fully automated or mechanised using unskilled workers.
- Flow Production is likely to be used to make products for a mass market eg computers, household appliances.
Advantages
- Use of automated production means a higher rate of output and greater accuracy.
- Fewer and/or less skilled workers needed, reducing the wage bill.
- Lower production costs allow a lower selling price leading to higher sales.
Disadvantages
- Set up costs are high – investment in machinery required.
- Products are standardised – meaning there may be limited choice for consumers.
- Workers may get bored and de-motivated doing repetitive work.
Factors Affecting Choice of Production Method
Nature of the Product
- An unusual product may use a job production method so that features can be modified to suit customer requirements.
- If different versions of a product are needed – eg sizes, colours or flavours – batch production methods may be used.
- Products with standardised features may use flow production as greater use of machinery and automation can be made.
Size of the Market (Level of Demand)
- Products required on a ‘one-off’ basis, or for a ‘niche’ market are suited to job production methods.
- Products required for the ‘mass’ market are more suited to flow or batch methods of production.
Quality Standard Required
- Products with bespoke features, needing skilled judgements to identify problems with quality, may be suited to a job production method of production.
- Products needing precision and/or consistency of quality may use an automated system, with flow or batch methods of production.
Availability of Resources (Finance/Staff/Technology)
- If start-up finance is available, flow methods may be chosen, otherwise a more modest job approach may be used.
- If the organisation has sufficient space, it may set up a flow production assembly line, as opposed to job production if space is limited.
- If the workforce available is skilled, then job production may be used, whereas a shortage of skilled workers might require the use of a flow production approach.
- As technology advances there are more tasks which can be automated, opening possibilities for greater use of flow production.