METHODS OF PRODUCTION

JOB PRODUCTION One product is made at a time. Product tends to be unique and made to the customer’s specification. E.g. bridges, wedding dress

ADVANTAGES Meets customer needs exactly A high price can be charged High quality Specification can be changed High employee motivation. DISADVANTAGES Expensive – high quality of workers needed. Wide variety of tools/equipment needed Takes a long time to make

BATCH PRODUCTION Products are made in groups, which are similar. No item moves on to the next stage of production until all are ready. E.g. Newspapers, cakes, bread

ADVANTAGES Can be changed to meet customer requirements. Less highly skilled labour needed. Machinery is roughly the same – reduces costs DISADVANTAGES Machines/workers may sit idle between stages Expensive machinery may be needed. Stock levels may be high Lower staff motivation Small batches will still have high costs

FLOW PRODUCTION Products are made continuously, normally on an assembly line. At each stage of production something else is added on to the product. All products are the same Highly mechanised. E.g. cars, TVs, white goods

ADVANTAGES Lower cost per item Bulk discount may be available May be automated, lowers costs and human error Machinery can work 24/7 Produce a lot DISADVANTAGES Huge investment needed Can’t meet individual requirements Equipment may not be flexible Low worker motivation – repetitive tasks Breakdowns in machinery can halt production

WHICH METHOD? Depends on: The product being made The size of the market The size of the business The finance available The technology available

LABOUR-INTENSIVE Production uses a lot of human input because: Labour is cheap and available Product requires expertise The firm is small and can’t afford machinery. However Skilled labour is expensive Limited to small scale production If staff are off production stops

CAPITAL-INTENSIVE Production relies on machinery and automation because: A standard product is being made Labour supply is scarce or expensive Continuous production is required Economies of scale are wanted However Set up costs are high Breakdowns stop production Not meeting the individual requirements of customers Repetitive tasks results in low motivation.

EFFICENCY OF PRODUCTION To ensure that production is working well, firms may look at the process and their workers to find out the best way of working. Two ways of doing this is through either METHOD STUDY or WORK MEASUREMENT

METHOD STUDY Select the task to be looked at Record how it is currently done Examine the information collected Develop a better method of doing the job Install the new method Maintain the new method

WORK MEASUREMENT This looks at how long a task should take so that a standard time can be identified. Employee performance is then judged against the standard time.

EXAMPLES Method Study – garage looks at procedures for servicing cars and ways to improve it. Work Measurement – garage sets a standard time it should take to service a car.