1. 4.1.2 The Main Methods of Production
IGCSE Business Studies
4.1.2 The Main Methods of Production

2. LEARNING OBJECTIVES
To understand the features, benefits and limitations of job, batch and flow production
To be able to evaluate and justify an appropriate production method for a given situation

3. Starter – 5 minutes
Look at the pictures below and discuss in pairs how you think the product or service is made.

4. Job production
Job production: Involves producing a one-off product for a specific customer
e.g. cake decorating, architecture, hairdressing
Advantages
Made to customer specifications
High quality can be achieved
Workers are well motivated
Disadvantages
Usually labour intensive
Specialist labour is expensive
Relatively slow

5. Batch production
Batch production: Items are produced in groups or ‘batches’, i.e. they all undergo one operation before moving onto the next
e.g. baking bread, food canning
A significant problem with this method is that the production equipment must usually be stopped, re-configured, and its output tested before the next batch can be produced (down-time)

6. Batch production advantages and disadvantages
Cost per unit is lower than ‘jobbing’
Several items can be produced on one production line
Batch size can vary to suit the order
Identical product produced
Batches can be varied to suit customer requirements
Disadvantages
Small batches increases retooling time
Storage costs increase – work in progress and finished goods
May involve repetitive jobs which can be demotivating

7. Flow production (mass production)
Flow production: The production of large amounts of standardised products on production lines
A conveyor belt is usually used to move the products on to the next process
e.g. car or processed food manufacturing

8. Flow production advantages and disadvantages
Ideal for mass produced goods
Lowest cost
Cheap, low skilled labour needed
Disadvantages
Requires a huge investment in machinery
Products must be standardised
Inflexible – assembly lines can not be easily adapted for different products
Repetitive tasks can be extremely demotivating for workers
A machine breakdown can cause production to completely cease
Often expensive to shut down the production line – e.g. if demand is low

9. Methods of production final thought
It is often difficult to classify exactly which method is used to make a product
e.g. Car production involves flow production (assembly line) and batch production (engine blocks)

10. Quiz Time!
Grab the boards
Method of production quiz