An Introduction to Production Methods

●​ Production is the transformation of resources (e.g. raw materials components

and processes) into finished goods or services
○​ Goods are physical products, such as bicycles and T-shirts
○​ Services are non-physical items such as hairdressing, tourism and
manicures
●​ Businesses can organise their production processes in a variety of ways​
​

The main methods of production​

●​ The method of production used by a business will depend upon a number of

factors
○​ The level of output required to be produced
○​ The nature of the product
○​ Whether the product is standardised or customised
○​ The level of automation used in production

Job Production
●​ Job production is where products are made to meet the specific requirements
of individual customers
○​ Each item is produced separately (a job) and the production process is
tailored to the unique specifications of the customer's order​

●​ The key characteristics of job production include

○​ Customisation
○​ Low volume
○​ Variability
○​ Skilled labour
○​ Longer lead times​

●​ Customisation: Each product is customised according to the customer's

specific requirements allowing for personalised goods or services to be
 created​

●​ Low Volume: Job production is typically used for unique or specialised

products that are not produced in large quantities​

●​ Variability: Since each product is made to order there can be significant

variation in the production process and materials used​

●​ Skilled Labour: Job production often requires skilled labour such as craftsmen
or technicians as the manufacturing process may involve intricate tasks or
specialised techniques​

●​ Longer Lead Time: Due to the customisation and individual production

approach job production usually has longer lead times compared to other
production methods and the time required to fulfil each order can vary
depending on its complexity and the availability of resources​

The Advantages & Disadvantages of Job Production

Advantages Disadvantages
 ●​ Allows for high levels of ●​ Tends to be more expensive than
customisation other production methods due to
○​ This enables businesses the customisation involved​
to cater to the unique
needs​ ●​ The customised nature of job
production often leads to long
●​ It provides the flexibility to adapt lead times which may not be
to changes in customer demands suitable for customers requiring
and market trends​ products to be delivered quickly​

●​ With a focus on individualised ●​ Job production can be complex

production, job production allows and challenging to manage
for greater attention to detail and compared to other production
quality control methods
○​ This often generates the ○​ It requires close
ability to set a premium coordination and
price​ communication between
the production team and
●​ Job production offers a more the customer to ensure
personalised customer that the final product
experience as customers have meets the desired
the opportunity to be actively specifications​
involved in the design and
creation process ●​ Low-volume production is
○​ This is likely to lead to unlikely to allow a business to
customer loyalty achieve economies of scale

Examples of Job Production

Furniture made to order, Tailored clothing such as High-end jewellery pieces,

where customers can suits or wedding dresses especially those with
choose the design, where each garment is unique designs or
dimensions, materials and made to fit the specific personalised engravings
finishes measurements and
preferences of the
individual customer
 Batch Production
●​ Batch production occurs when products are produced in groups or batches
○​ A certain quantity of products is produced together before moving on to
the next batch
○​ Each batch goes through the entire production process, from raw
materials to the finished product, before the next batch begins
○​ Batches are usually of a standardised size and composition and follow
a certain sequence of operations

Batch production is a common approach used in industries including

pharmaceuticals, beauty products and food processing​
●​ Batch production strikes a balance between customisation and
cost-effectiveness, making it a suitable production method for industries that
deal with diverse product ranges and varying customer needs​

Advantages & Disadvantages of Batch Production

Advantages Disadvantages

●​ Batch production allows ●​ Setting up the equipment and

manufacturers to switch between configuring the production line for
batches and cater for varying each batch can be
customer demands​ time-consuming and may result
in idle time between batches​
●​ It can be more cost-effective
compared to flow production ●​ Often leads to the accumulation
especially when producing items of stock which requires storage
in smaller quantities​ and careful management to avoid
wastage​
●​ It allows a business to benefit to
some extent from purchasing ●​ While batch production offers
economies of scale as larger flexibility it is not as adaptable as
quantities of stock may be other production methods such
purchased than with job as flow production
production​ ○​ Rapid changes in product
demand or frequent
●​ Quality issues can be identified product variations may be
and defects can be rectified difficult to manage​
within a specific batch before
moving on to the next, minimising ●​ Frequent start-up and shutdown
the impact on the entire of machinery can put additional
production line​ stress on equipment, requiring
regular maintenance and repair
●​ Batch production is suitable for to ensure smooth operations
customised or specialised
products because manufacturers
can tailor each batch to meet
specific customer requirements

Mass/Flow Production
●​ Flow production occurs when a product is produced in a continuous sequence
of operations on a production line
●​ It involves the movement of materials or components through a series of
workstations or machines with each workstation performing a specific task or
operation​

■​ As a product moves along the production line it undergoes a

series of operations, such as assembly, testing, packaging or
quality control until it is completed
●​ This method is commonly used in industries that produce high volumes of
standardised products such as automobiles and consumer electronics​

●​ The key characteristics of flow production include:

●​ Division of labour
●​ Continuous movement on a production line
●​ Standardisation
●​ Automation
●​ High volume

●​ Division of labour: Different tasks are allocated to different workstations or

machines, allowing workers to specialise in a specific task​

●​ Standardisation: The manufacture of identical products helps to ensure

consistency and the smooth flow of production​

●​ Continuous movement: The product moves continuously from one workstation

to another, minimising idle time and maximising productivity​

●​ High volume: Flow production is suitable for high-volume manufacturing as it

enables the efficient production of large quantities of identical or similar
products​

●​ Automation: Flow production often involves the use of machinery and

automated equipment to perform repetitive tasks quickly and accurately​

Advantages & Disadvantages of Flow Production

Advantages Disadvantages
 ●​ Flow production minimises setup ●​ Implementing flow production
time and reduces idle time systems often requires significant
leading to improved overall capital investment to purchase
efficiency​ expensive manufacturing
equipment and automation
●​ The continuous flow of technologies ​
production eliminates the need
for frequent equipment start-ups ●​ It relies on the reliability and
and shutdowns, reducing energy efficiency of equipment and
consumption and minimising machinery
material waste​ ○​ If any part of the
production line breaks
●​ Labour costs may be lower due down it can disrupt the
to automation and processes that entire process, leading to
require less skilled workers​ costly downtime​

●​ Allows for greater control over ●​ It is best suited for standardised

product quality because it is easy products which can pose
to identify and address any challenges in industries that
deviations or defects early on​ require frequent product
customisation​
●​ Enables fast production resulting
in short lead times which help ●​ If a defect is detected it may
companies respond more quickly require the stoppage of the entire
to market demands production line resulting in
substantial losses​

●​ Relies on a steady supply of raw

materials and components
○​ Any disruption in the
supply chain can have a
severe impact on
production

Exam Tip
Carefully consider the needs of the customers to which a business sells when
recommending a suitable method of production. Where the selling price is a key
driver of consumer demand, flow production (where unit costs are minimised) is
likely to be very suitable. Where demand is driven by quality or where customisation
is required, job or batch production are likely to be better choices.
Mass Customisation
●​ Mass production is usually achieved through flow production and involves the
manufacture of large quantities of standardised products, resulting in low
costs per unit compared to other methods of production​

●​ Customisation is usually associated with job production or small-scale batch

production, allowing customers to design products from scratch​

●​ Mass customisation seeks to bridge this gap by offering flexibility with a range
of customisable options within a standardised production process alongside
the low unit costs typically associated with flow production
○​ It uses technology, such as computer-aided design (CAD), flexible
manufacturing systems and data analytics to efficiently accommodate
customer preferences​

A comparison of mass production, customisation and mass customisation​

●​ The process of mass customisation typically involves three key stages​

The Three Stages of Mass Customisation

 Stage Explanation Example

1. Choice ●​ Customers are ●​ E.g. Audi customers can

presented with a select a specific model,
range of such as the Avant, Saloon,
pre-designed Coupé or Sportback and
product options, decide the trim level from
features or Premium, Premium Plus
configurations from and Prestige
which they can
choose

2. ●​ Customers have the ●​ E.g. Audi customers can

Customisation opportunity to choose extra features such
personalise their as driver assistance tools,
chosen product by a towbar or a dashcam
selecting specific
features, colours,
sizes or other
configurable
elements

3. Production ●​ Once the customer's ●​ The production system is

preferences are designed to efficiently
received the produce the customised
manufacturing product, often using flexible
process can begin manufacturing techniques
such as cell production
●​ E.g. At Audi each new
vehicle takes between six
and twelve weeks to
manufacture on the highly
automated production plant
in Germany, with steps
involving the use of 3D
 printing and artificial
intelligence

●​ Mass customisation offers several advantages for both businesses and

customers​
​

○​ Customers can obtain products that match their unique preferences

and requirements and are likely to be highly satisfied which leads to
positive feedback and loyalty​

○​ Businesses can adapt to changing market demands effectively by

offering a wide range of product variations without the expense of full
customisation​

○​ By utilising standardised components and processes mass

customisation allows businesses to achieve economies of scale,
reduce stock costs and improve overall production efficiency​

○​ Mass customisation can differentiate a company from competitors,

attract new customers and create a perception of high value and
innovation​

●​ However, mass customisation usually requires heavy capital investment in

technology and variable costs tend to be higher than for standardised, mass
produced items