Presentation on theme: "METHODS OF PRODUCTION Business must decide on the most suitable method of production. The objective is to minimise the cost per unit, i.e. productive."— Presentation transcript:
1METHODS OF PRODUCTIONBusiness must decide on the most suitable method of production. The objective is to minimise the cost per unit, i.e. productive efficiency.Which method?Job Batch Flow
2JOB PRODUCTION Production of a single product at a time small number of units requiredEntire job is completedeg birthday cake, dental treatmentfound both in the manufacturing and service industriesbecause number of units produced is small, production process is highly labour intensiveworkforce usually skilled craftsmenmany small businesses start this way.
3JOB PRODUCTION ADVANTAGES Can produce unique “one-offs”, specification can constantly be modifiedworkers more likely to be motivated, tasks require high degree of skill and expertise. Work more demanding and interestingorganisation is simple, communication, co-ordination, supervision and inspection can be carried out.DISADVANTAGESlabour costs highmay be expensive to buy all the tools and equipment necessarylead times can be lengthyselling costs may be highOnce demand for a firm’s product rises, job production may become costly. Firms may prefer to use a method more suited to producing large quantities.
4BATCH PRODUCTIONUsed when demand for a product is regular rather than a ‘one-off’. An example might be a bakery producing bread.A number of products (a batch) are produced at once.Each product in the batch is identical, but products may vary from batch to batchProduction is broken down into a number of operationsa particular operation is carried out on each batch before moving to the next stage.A great number of products are produced using this method, particularly in the manufacturing of components and in food processing.
5BATCH PRODUCTION DISADVANTAGES Flexibility - each batch can be changed to suit customer requirementsemployees can concentrate on one operation rather than whole task (specialisation)stocks of partly finished goods can be stored and completed when demanded by individual customersDISADVANTAGEScareful production planning required or machines may lie idleworkforce may be less motivated due to repetitionif batches are small then unit costs are higha lot of money could be tied up in work-in-progress
6FLOW PRODUCTIONProduction is organised so that different operations can be carriedout one after the other, in a continuous sequence.The main features are as follows:large quantities are produceda standardised product is made i.e all the samesemi-skilled workforcelarge amounts of robotics, machinery and equipment (capital intensive)large stocks of raw materials and component parts are required
7FLOW PRODUCTION unit costs are reduced through economies of scale ADVANTAGESunit costs are reduced through economies of scalethe process can be highly automated, many operations carried out by robots and other types of machineryQuality systems can be built into productionDISADVANTAGESSet up costs are very highproduct is standardisedworker motivation can be lowbreakdowns can prove costly as the whole production system may come to a halt.Supply may exceed demand
8A COMBINATIONSome businesses may use a combination of the job, batch and flowFor example, a brewery may make batches of special ale but it is then sent to a bottling plant where continuous flow is used
9QuestionsIdentify the main objective when choosing the method of production? (1)Describe the process of batch production, it’s most suitable application and its advantages and disadvantages (6)Describe the process of flow production, it’s most suitable application and the advantages and disadvantages (6)Suggest why an organisation might use a combination of productions methods. (1)