1. Methods of Production GCSE Business Studies

2. Methods of Production Job Batch Flow Just in Time (JIT)

3. Job Production A single product is produced from start to finish as a result of an individual customer order. Can suit both small scale production e.g. a tailor made suit, and large scale production e.g. a cruise liner. Tends to be a labour-intensive production process.

4. Job Production Advantages Each piece is made to the customer’s exact requirements Job satisfaction is high for the worker Quality of the goods is very high The design is flexible and can be changed Disadvantages The products are very expensive The work is very time consuming The advantages of economies of scale are lost

5. Batch Production Is used to produce a number of similar products - a batch. When an order has been completed another batch is produced. Most manufacturing occurs through batch production. For example clothes manufacturers use batch production to produce a given item, such as a blazer, in batches of different sizes or colours. All of the items in the batch are the same, so production is speeded up. This reduces the cost of labour and results in the final product being less expensive for the customer.

6. Batch Production Advantages Workers may specialise to some degree Labour costs reduced so final price is lower Machinery may be used Production is faster Begins to take advantage of economies of scale Disadvantages The work is less interesting and very repetitive More space is required for working and storage Larger stocks of raw materials must be kept Machines have to be re- set between batches, losing time

7. Flow Production Also known as mass production or assembly line production. Product is passed along a production line - raw materials to ready for sale. Flow production is a capital-intensive process Employees are only required to perform repetitive tasks so they are usually unskilled or semi-skilled employees. The finished product is usually not expensive for the customer.

8. Flow Production Advantages The final product is inexpensive Large quantities can be manufactured The quality of the product is standardised Machinery can be used so labour costs are reduced Unskilled wages further reduce costs Assembly lines can run continuously Production is fast Takes full advantage of economies of scale Disadvantages The work is repetitive There is an increased risk of accidents Employee motivation is low The products are all identical Large capital investment is required Larger buildings are usually needed Large stocks of raw materials must be kept Machinery breakdown can halt production There is a loss of traditional skills

9. Just In Time (JIT) Production JIT production uses stocks that are delivered to the production line ‘just in time’ to be used. The business needs less factory space, as it holds smaller stocks; but it depends on suppliers agreeing to meet delivery requirements. The business does not have as much money tied up in stock, warehousing costs or unsold finished products. The reliability of the supplier in delivering good- quality stock on time is crucial to keeping the production process running smoothly.

10. Just in Time (JIT) Production Advantages Capital is used very effectively Warehousing is not needed for storage If faults occur in supplies, the business does not have a large number of faulty items There is no waste by having excess stocks The finished product should be cheaper for the consumer to buy Disadvantages The business is very dependent on having a very efficient ordering system Production could be halted if the wrong goods were delivered at the last minute It puts pressure on suppliers The company and its suppliers must work together closely

11. JobBatchFlow Craft goodsNewspapersMotor vehicles Luxury carsBreadMachinery Designer clothesClothingTelevisions Stained glass windows FurnitureInexpensive clothing Landscape gardening BooksToys

12. TECHNOLOGY IN PRODUCTION QUALITYMOTIVATIONCAPITAL COSTS RETRAINING COSTS REDUNDANCIES IMPROVED COMMUNICATION INCREASED PRODUCTION NEW PRODUCTS LOWER COSTSHIGHER PROFITS CUSTOMER SATISFACTION

13. Impact of New Technology on Production Benefits Improvement of the quality of the finished product Development of new products Increase in the business’s production level Decrease in the production costs per unit Higher profit level Greater customer satisfaction Improved motivation of workers Improved information and communication systems Drawbacks Possible redundancies Retraining programmes Capital costs