Methods of Production IGCSE Business

Lesson Objectives: By the end of this lesson you will: All: explain the different types of production process. Most: Compare and choose a suitable method of production for a business based on information given. Some: Evaluate the production methods based on your knowledge of the advantages and disadvantages of each.

JOB BATCH FLOW Production Methods Production can take place in different ways depending on the type and quantity required of the product… JOB BATCH FLOW

ADVANTAGES: Easier to customise an item Job Production Making one thing at a time Used for individual, unique products When work on one product is finished, production of another can begin EXAMPLES: Ships, bridges, made-to measure clothes, wedding cake ADVANTAGES: Easier to customise an item DISADVANTAGES: Expensive, takes a long time and requires highly skilled labour.

BATCH PRODUCTION Combination of job and flow production Make a limited number of one identical product then stop, reorganise and make a batch of something else EXAMPLES: Houses, Bread, Different Sized Clothing; Milk ADVANTAGES Less waste than job production; Can produce things in limited quantities DISADVANTAGES Requires equipment and good management skills

Henry Ford Early 1900’s; Took inspiration from a butcher and the way that they produced meat. As a result of these developments in method, Ford's cars came off the line in three minute intervals. This was much faster than previous methods, increasing production by eight to one (requiring 12.5 man-hours before, 1 hour 33 minutes after), while using less manpower.[2] It was so successful, paint became a bottleneck. Only japan black would dry fast enough, forcing the company to drop the variety of colors available before 1914, until fast-drying Duco lacquer was developed in 1926.[2] In 1914, an assembly line worker could buy a Model T with four months' pay. “You can have the Model T in whatever colour you like…as long as it’s black!”

FLOW/MASS PRODUCTION Producing as many as possible of an identical product Used for mass market products Usually highly automated Production is continuous with no stoppages (shift work) EXAMPLES: Fizzy Drinks, Mobile Phones, Televisions ADVANTAGES: Economies of scale; Can sell at competitive prices DISADVANTAGES: Need to invest lots of money; Machinery can break down

BATCH PRODUCTION Can be a Combination of job and flow production TIP: You may notice that Job production is for the smallest production of items, Batch is for a slightly larger number of items produced and FLOW is for the largest number of items produced.

Example: BMW Production in Action A business may use a combination of all three types of production at different times depending on product or customer needs. MASS: Most BMW cars BATCH: Most expensive top-of-the range JOB: Custom make cars full of unusual gadgets (James Bond).

Case Study

Name and Explain the Definition… The production method that combines elements of job production and flow production… Why the cost of producing each unit decreases because you are producing more… BATCH PRODUCTION ECONOMIES OF SCALE JOB PRODUCTION FLOW PRODUCTION Producing one good at a time A continuous production of goods When products are of good standard… A worker concentrates on one specific task QUALITY SPECIALISATION