1. Methods of Production
IGCSE Business

2. Lesson Objectives: By the end of this lesson you will:
All: explain the different types of production process.
Most: Compare and choose a suitable method of production for a business based on information given.
Some: Evaluate the production methods based on your knowledge of the advantages and disadvantages of each.

3. JOB BATCH FLOW Production Methods
Production can take place in different ways depending on the type and quantity required of the product…
JOB
BATCH
FLOW

4. ADVANTAGES: Easier to customise an item
Job Production
Making one thing at a time
Used for individual, unique products
When work on one product is finished, production of another can begin
EXAMPLES: Ships, bridges, made-to measure clothes, wedding cake
ADVANTAGES: Easier to customise an item
DISADVANTAGES: Expensive, takes a long time and requires highly skilled labour.

5. BATCH PRODUCTION Combination of job and flow production
Make a limited number of one identical product then stop, reorganise and make a batch of something else
EXAMPLES: Houses, Bread, Different Sized Clothing; Milk
ADVANTAGES
Less waste than job production; Can produce things in limited quantities
DISADVANTAGES
Requires equipment and good management skills

6. Henry Ford
Early 1900’s; Took inspiration from a butcher and the way that they produced meat. As a result of these developments in method, Ford's cars came off the line in three minute intervals. This was much faster than previous methods, increasing production by eight to one (requiring 12.5 man-hours before, 1 hour 33 minutes after), while using less manpower.[2] It was so successful, paint became a bottleneck. Only japan black would dry fast enough, forcing the company to drop the variety of colors available before 1914, until fast-drying Duco lacquer was developed in 1926.[2] In 1914, an assembly line worker could buy a Model T with four months' pay.
“You can have the Model T in whatever colour you like…as long as it’s black!”

7. FLOW/MASS PRODUCTION
Producing as many as possible of an identical product
Used for mass market products
Usually highly automated
Production is continuous with no stoppages (shift work)
EXAMPLES: Fizzy Drinks, Mobile Phones, Televisions
ADVANTAGES: Economies of scale; Can sell at competitive prices
DISADVANTAGES: Need to invest lots of money; Machinery can break down

8. BATCH PRODUCTION Can be a Combination of job and flow production
TIP: You may notice that Job production is for the smallest production of items, Batch is for a slightly larger number of items produced and FLOW is for the largest number of items produced.

9. Example: BMW Production in Action
A business may use a combination of all three types of production at different times depending on product or customer needs.
MASS: Most BMW cars
BATCH: Most expensive top-of-the range
JOB: Custom make cars full of unusual gadgets (James Bond).

10. Case Study

11. Name and Explain the Definition…
The production method that combines elements of job production and flow production…
Why the cost of producing each unit decreases because you are producing more…
BATCH PRODUCTION
ECONOMIES OF SCALE
JOB PRODUCTION
FLOW PRODUCTION
Producing one good at a time
A continuous production of goods
When products are of good standard…
A worker concentrates on one specific task
QUALITY
SPECIALISATION