Production methods: It is the processes and techniques that are used
to manufacture a product. There are four methods of production, and
the method chosen by any business depends very much on the type of
product being made, and on the quantity which is required.
Job production method:
This is a method of production where companies use all their factors of
production to complete one job at a time. This will usually happen
where products are all unique or they are being produced on a very
small scale. Job production method includes hair cutting, tailoring,
painting, plumbing, decorating etc.
With Job Production single items, usually to the buyer’s specification
are made. Examples of goods made by Job Production are bridges,
wedding dresses, tailor made suits. Employees producing goods using
job production can be highly skilled, and therefore paid well, and have
interesting challenging jobs. Goods can take a long time to make
compared to goods made by mass production; prices are also likely to
be a great deal higher. Firms may use Job Production to differentiate
their products from the mass market, and allow them to target niches
within the market, or it may be the nature of the product that forces
the firm to apply Job Production methods.
Advantages
The advantage of job production is that each item can be altered for
the specific customer and this provides genuine marketing benefits. A
business is likely to be able to ‘add value’ to the products and possibly
create a unique selling point (USP), both of which should enable it to
sell at high prices.
Disadvantages
Whether it is based on low or high technology, Job production is an
expensive process as it is labor intensive (uses more workers compared
to machines). This raises costs to firms as the payment of wages and
salaries is more expensive than the costs of running machines.
Batch production method:
As businesses grow and production volumes increase, it is not unusual
to see the production process organized so that "Batch methods" can
be used.
Batch methods require that the work for any task is divided into parts
or operations. Each operation is completed through the whole batch
before the next operation is performed. By using the batch method, it is
possible to achieve specialization of labor. Capital expenditure can also
be kept lower although careful planning is required to ensure that
production equipment is not idle. The main aims of the batch method
are, therefore, to:
-Concentrate skills (specialization)
- Achieve high equipment utilization
This technique is probably the most commonly used method for
organizing manufacture. A good example may be the production of
electronic instruments.
Batch methods are not without their problems. There is a high
probability of poor work flow, particularly if the batches are not of the
optimal size or if there is a significant difference in productivity by each
operation in the process. Batch methods often result in the buildup of
significant "work in progress" or stocks
Advantages
It is cheaper to produce a number of each item in one go
because machines can be used more effectively,
the materials can be bought in bulk and the workers can
specialize in that task.
There are two particular advantages of workers being able to
concentrate their skills:-
They should become more expert at their tasks, which will in
turn increase productivity (output per worker). This will lower
costs, as fewer workers are needed to produce a set amount.
Better quality products should be produced as workers are
more familiar with the task and so can find ways of improving
it.
Disadvantages
Batch production requires very careful planning to decide what
batch will be produced when.
Batch methods can also result in the buildup of significant
“work in progress” or stocks (i.e. completed batches waiting
for their turn to be worked on in the next operation). This
increases costs as it takes up space and raises the chance of
damage to stock.
Flow method:
Flow has been defined as a "method of production organization where
the task is worked on continuously or where the processing of material
is continuous and progressive,"
The aims of flow methods are:
- Improved work and material flow
- Reduced need for labor skills
- Added value / completed work faster Flow methods mean that as
work on a task at a particular stage is complete, it must be passed
directly to the next stage for processing without waiting for the
remaining tasks in the "batch". When it arrives at the next stage, work
must start immediately on the next process. In order for the flow to be
smooth, the times that each task requires on each stage must be of
equal length and there should be no movement off the flow production
line. In theory, therefore, any fault or error at a particular stage
In order that flow methods can work well, several requirements must
be met:
(1) There must be substantially constant demand
If demand is unpredictable or irregular, then the flow production line
can lead to a substantial buildup of stocks and possibility storage
difficulties. Many businesses using flow methods get round this
problem by "building for stock" - i.e. keeping the flow line working
during quiet periods of demand so that output can be produced
efficiently.
(2) The product and/or production tasks must be standardized
Flow methods are inflexible - they cannot deal effectively with
variations in the product (although some "variety" can be accomplished
through applying different finishes, decorations etc. at the end of the
production line).
(3) Materials used in production must be to specification and
delivered on time
Since the flow production line is working continuously, it is not a good
idea to use materials that vary in style, form or quality. Similarly, if the
required materials are not available, then the whole production line will
come to a close - with potentially serious cost consequences.
(4) Each operation in the production flow must be carefully defined -
and recorded in detail
Advantages
Flow production is capital intensive. I.e. uses a lot of
Machinery, automation and robotics. The advantage of this is that costs
are lower because:-
Production can continue at night and over weekends
Expensive lab our costs are avoided. Firms benefit from economies of
scale, which should lower the
Cost per unit of production.
Disadvantages
The main disadvantage is that with so much machinery it is Very
difficult to alter the production process. This makes Production
inflexible and means that all products have to be Very similar or
standardized and cannot be tailored to Individual tastes.
Mass customization :
Production of personalized or custom-tailored goods or services to
meet consumers' diverse and changing needs at near mass production
prices. Enabled by technologies such as computerization, internet,
product modularization, and lean production, it portends the ultimate
stage in market segmentation where every customer can have exactly
what he or she wants.
Advantages: more amount of goods can be produced at a very less time
also it consumes less capital.
