0264 · 4.1.2The main methods of production

Production methods and job production

0:00A customised wedding cake, trays of bread and identical bottled drinks require different ways of organising production. Each business must match its working methods to what customers want and how much they buy. A suitable choice helps control costs and meet orders. By the end, you will understand how the main methods work and how to choose between them. Production is using resources to make goods or provide services. Goods are physical products, while services are activities carried out for customers.

0:27A production method describes how the work is organised. The central decision concerns how much to make together and how easily the process must adapt to different customer requirements. Think about the difference between personal attention and repetition. Adapting each item takes time, but it allows customers to receive something suited to their requirements. Repeating an established process makes it easier to produce large quantities quickly. Businesses balance those benefits against their costs, available equipment and expected orders.

0:55The main methods are job, batch and flow production. Job production is making one product at a time to the customer’s own order. With batch production, a quantity of one product is made, then a quantity of another. The items in a batch pass through each stage together. Flow production makes large quantities of a standard product continuously on a production line. A made-to-measure suit illustrates job production because the customer specifies its measurements and design.

1:19The tailor cuts the chosen fabric, assembles the pieces and completes the finishing work. Each order receives individual attention throughout its production. A bridge also fits this method because its design responds to the requirements of a particular site. Customers gain a unique product because it is made to match their individual requirements. For the business, careful attention from skilled employees can achieve high quality. Quality is producing a good or service that meets customers’ expectations and is free from faults.

1:46Customers who value that combination of personalisation and workmanship may accept a higher price. Employees are usually skilled and gain satisfaction from varied tasks and responsibility for a completed item, so they are often well motivated. For example, a tailor can see the finished result of their own decisions. The business faces high labour costs because suitable skills often require higher pay. It also has a high cost per unit because substantial employee time goes into each order.

2:11Customers may wait longer because measurements, adjustments and finishing take time. The business also has limited output because each order requires individual work. A higher selling price can help cover these costs when buyers value the result. Job production therefore suits situations where meeting particular requirements matters more than producing large quantities quickly.

Batch production: benefits and limitations

2:30A clothing manufacturer can use batch production to make shirts in different sizes. A group of small shirts passes through cutting, sewing and finishing together. The equipment is then adjusted for a group of large shirts. This gives the business repeated production within each group and variety between groups. The business gains flexibility because it can change the sizes, colours or designs produced between batches. Customers benefit from a choice of products because several versions can be offered.

2:56Making several identical items together also reduces repeated preparation for individual pieces. The cost of setting up equipment is shared across that group, which can lower cost per unit. Economies of scale are the factors that lower average costs as a business increases in size. Batch production can support some economies of scale through equipment suited to producing several identical items together. Employees can also become quicker at repeated tasks within a group.

3:21These savings depend on producing enough items to make the preparation worthwhile. However, the business loses production time when machines must be reset between batches. A change of colour may require cleaning equipment before the next group begins. Inventory is the goods and materials a business holds, for use in production or for sale. Keeping completed batches until customers buy them requires storage space and ties up money. Employees may find the repeated tasks within a large batch boring, which can reduce their effort.

3:49The business also risks making more of a particular version than customers want. Unsold items continue to occupy storage space. Choosing suitable batch sizes therefore depends on expected purchases and the time needed to change between products.

Flow production: high-volume output

4:02A car component manufacturer can use flow production when it needs large quantities of the same part. Each component follows the same sequence through shaping, drilling, checking and packing. Different items occupy different stages at the same time. Once the line is operating, completed products emerge regularly from the final stage. The business gains high output because work proceeds through an established sequence with little interruption between individual items. Automation is using equipment to carry out tasks with limited human involvement.

4:30The repeated tasks on a line suit it well, so fewer employees are needed for each unit. Expensive equipment is spread across a very large output, so the business gains economies of scale and a low cost per unit. These savings help it supply large orders at competitive prices. The line divides work into separate stages, so each employee needs training for only one task. That training is quick, which saves the business time and money.

4:54Motivation is the reason why employees want to work hard and work effectively for the business. Employees who repeat the same narrow task all day often become bored, so their motivation and effort can fall. The business faces a high initial cost because a complete production line requires substantial investment in machinery. Customers also have limited choice when the line is designed around a standard product. A breakdown at a critical stage can stop the whole line.

5:18Later stages then receive no components, so the business loses output until the problem is resolved. Flow production depends on enough demand to keep the line occupied. When orders are too low, expensive equipment stands unused or the business produces items that remain unsold. Its strength comes from repeating a suitable process at high volume. That makes the expected quantity of sales central to the choice.

Choosing production methods

5:38To choose a method, connect the customer’s requirements with the quantity needed. Then check whether the business has enough money for suitable equipment. Its aim also matters because fast delivery of identical products creates different priorities from individual craftsmanship. Finally, compare the closest alternative method with your choice using the case's own details. Willow Works makes furniture to customers’ individual measurements and designs. This small business has six employees and an equipment budget of twenty thousand dollars.

6:06Upgrading its tools for custom work would cost eight thousand dollars, while a production line for standard tables would cost ninety thousand dollars. The owner aims to attract customers who value individual designs and careful workmanship. Start with the product requirements: the measurements and designs change between orders. Next, consider the quantity: the business needs individual pieces that suit particular customers. The production line costs far more than the budget and only makes a standard product, so it offers little benefit.

6:34Batch production is the closest alternative because similar pieces could share preparation, but these orders require different specifications. I recommend job production for Willow Works because individual measurements require each piece to match its customer’s order. The tool upgrade costs eight thousand dollars, which leaves twelve thousand dollars of the budget for materials and repairs. Batch production is weaker because differing specifications limit opportunities to make identical pieces together. Job production supports the owner’s aim, so the business can attract customers seeking individual designs and charge a higher price for each piece.

7:07Cedar Springs produces identical bottled soft drinks for supermarkets. This manufacturer has eighty employees and receives large, regular orders. It has an equipment budget of five hundred thousand dollars, while the proposed production line costs four hundred thousand dollars. Its aim is to supply those orders at a low cost per bottle. Here, standardisation and regular demand support a continuously operating line. The proposed line costs less than the budget, so the purchase leaves one hundred thousand dollars for other needs.

7:33Batch production offers flexibility when varieties change, but this case involves identical bottles. Repeated changeovers would provide little benefit for these regular supermarket orders. I recommend flow production for Cedar Springs because substantial supermarket orders require high output of identical bottles. Its equipment budget covers the proposed line, which can spread machinery costs across large quantities. Batch production is weaker because interruptions between groups would reduce output without meeting an identified need for variety.

8:01Flow production gives reliable supply at a low cost per bottle, so Cedar Springs can keep its supermarket orders and earn a profit.

Exam answers and recap

8:08In Paper One Short Answer and Data Response, a question might ask you to explain an advantage of batch production for a clothing manufacturer. Explain means set out purposes or reasons, say why and how, supported with relevant evidence. Connect the method to the situation, then trace the effect. Each sentence should add a clear reason or consequence. A suitable answer would say that batch production allows the manufacturer to offer shirts in several sizes.

8:32Equipment can be adjusted between groups to produce the sizes customers require. The business can therefore sell to buyers who need different sizes, so its sales revenue can rise. The reasoning connects the method to a product detail and then to a business benefit. Paper Two Case Study can require a supported choice between methods. Justify means support a case with evidence or argument. Use details about orders, equipment, money and aims to support your choice.

8:57A strong recommendation also explains why the closest alternative is weaker for that particular business. Keep the methods distinct by following how the work moves. In batch production, items pass through each stage together before a different group is produced. Flow production moves individual items through a continuous sequence. Job production focuses on the requirements of a particular order, and a large project can involve many employees. For the recap, job production is making one product at a time to the customer’s own order.

9:25In batch production, a quantity of one product is made, then a quantity of another, and its items pass through every stage together. Finally, flow production makes large quantities of a standard product continuously on a production line. The strongest choice matches customer requirements, demand and available resources to the business aim.