1. IGCSE Business Studies
4.1.2 The Main Methods of Production

2. Learning Outcomes
An understanding of the features, benefits and limitations of job, batch and flow production.
The ability to recommend and justify an appropriate production method for a given situation.

3. There are 3 main methods of production
Job Production
Batch Production
Flow Production
What do you think the difference is?

4. Job Production
Job production involves firms producing items that meet the specific requirements of the customer.
Often these are one-off, unique items
With job production, a single worker or group of workers handles the complete task.
Jobs can be on a small-scale involving little or no technology. However, jobs can also be complex requiring lots of technology.
The goods are normally only produced once there is an order for them

5. Batch Production Goods are produced in lots or batches
Goods produced are similar, or differ in one respect such as shape or colour or size
When one batch is finished the machines may have to be re-set before moving on to the next batch
Examples include bread, sweets and clothes in different sizes

6. Flow Production
Under this method, goods flow along a production or assembly line.
They pass form one stage to the next without a break
The number of stages varies according to the product
There is a worker/machine at each stage who does one operation
Flow production is used in MASS PRODUCTION

7. Job, Batch or Flow?

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17. Task - Video Watch the video ‘Production methods’
Write a list of what products are being produced and what production methods are being used.

18. Task - Video Watch the video. ‘Production methods and efficiency’
Think about the advantages and disadvantages of job batch and flow production

19. Questions (discuss in pairs)
Which method requires the most highly skilled workers? Why?
Which method is likely to lead to workers getting bored at work? Why?
Which method needs the most expensive equipment? Why?
Which method is likely to have the highest productivity? Why?
Which method can produce goods the most quickly? Why?
Which method allows a company to tailor their products to meet customers needs?
Which method will be able to produce a good at the cheapest average cost? Why?

20. Task
Write a list od advantages and disadvantages for job, batch and flow production

21. Advantages and disadvantages of Job Production
Craftsmen get a chance to use their skills
Every product can be different
High quality can be achieved
Disadvantages
Labour intensive
Specialist labour is very expensive
Production is slow
The final product can be expensive

22. Advantages and Disadvantages of Batch Production
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 (down time)
Storage costs increase – work in progress and finished goods
May involve repetitive jobs which can be demotivating

23. Advantages and Disadvantages of Flow Production
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

24. 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)

25. Quiz Time method of production quiz
First person to get a full score gets a house point

26. Challenge – Evaluating methods of production
Recommend and justify an appropriate production method (or methods) for the following products

27. Exam Question
Tiny Toys currently operates in a niche market making customised toys for wealthy customers. The company has an excellent reputation and the owner is considering expanding to sell toys to the mass market.
Evaluate the most appropriate production method for Tiny Toys if they decide to expand (8 marks)