1. GCSE Business Studies
Production

2. Objectives
To understand the three main methods of production that a business can use to produce goods
To consider the advantages and disadvantages of each method of production

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

4. You own a business – you cannot eat your products – this does not generate any profit!

5. Resources
Raw Materials:
A range of different coloured Smarties
bags

6. Activity: Job Production
You are going to produce bags of Smarties that have 8 Smarties in each bag. The colour of Smarties you put in each bag will depend on your customer orders.
You have 2 minutes. Your group will have up to THREE orders to complete. Each pair in the group gets ONE order each. Find out what colour Smarties the order needs in each bag and write down the orders on your record sheet. Produce the bags of Smarties as ordered.
DO NOT EAT THE SMARTIES!

7. Job Production Producing a “bespoke” or custom made product
Each product is made for one individual customer
Examples:
Selling ice cream cornets
with a choice of fillings or
making individual bags of
Smarties:
Making a wedding dress:

8. Activity: Batch Production
Using the Smarties provided, produce the following bags of Smarties. Each bag will have 8 Smarties in it. Stop after the first batch and wait for the order to make the second batch.
Two bags – each bag containing 4 red/pink Smarties and 4 blue Smarties
Two bags – each bag containing 4 green Smarties and 4 purple/brown Smarties
Two bags – each bag containing a mixture of colours
You have TWO MINTUES

9. Batch Production
A group of identical products are produced, then the production process is stopped and re-organised in order to produce another “batch”
Products are produced “in bulk” but production is not continuous
Examples:
Seabrooks Crisp Factory, Bradford
Cadbury’s Factory, Birmingham

10. Activity: Flow Production
In a group of four, you must produce as many bags as possible in 2 minutes. You must produce at least 8 bags. Organise your production process as follows:
You must pass the Smarties along your production line to the “bagger”

11. Flow Production Production is continuous and does not stop
Mass production of a product
Examples:
Toothpaste factory in Beijing
TV Factory in Mexico

12. Flow Production: Car Manufacturing

13. The First Modern Day Mass Producer
Henry Ford
1903: Ford Motor
Company
1908: Model T car
“Customers can have any colour they
like, as long as it is black”

14. Activity:Just in Time
The goods required to produce the end product are delivered to the production line “just in time” for them being used.
This means stock levels are kept low but production could stop if the suppliers don’t deliver on time.

15. Activity:Just in Time
You are going to produce bags of Smarties. The colour and number of Smarties you put in each bag will depend on your customer orders.
One of your group must act as the supplier. It is their role to collect the resources and deliver them to the group. They can only deliver ONE item at a time and must wait until a request has been made by the group to say that they require each item.
You have 2 minutes. Your group will have up to THREE orders to complete and write down the orders on your record sheet.

16. Test Your Knowledge … Which method of production?
A group of identical products are produced, then the production process is stopped and re-organised in order to produce another “batch”
Production is continuous and does
not stop
Producing a “bespoke” product and each product is made for one individual customer

17. Types of Production: Job, Batch, Flow, JIT
In which of the three methods would you most likely …
Get a very satisfied customer?
Be able to charge the cheapest price?
Charge the highest price?
Have you low stock levels
Be able to be flexible as to what you produced – thus matching production to demand?
Be able to produce the most products per day?
Put pressure on your suppliers?
Have a large amount of capital investment to set up the process?
Have the cheapest “start-up costs”?

18. And…… Now you can eat your Smarties …

19. TASK – What do you remember
TASK – What do you remember? Methods of Production make notes / mind map on the advantages and disadvantages of the different types of production

20. Methods of Production Method of Production Advantages Disadvantages
Job
Production
Batch
Flow
Just in Time
Complete a mind map to show the advantages & disadvantages of each method of production

21. Job Production
Customer gets exactly what they want because the product has a unique design – customer satisfaction is maximised
Tends to be “labour intensive” – requires a large number of employee hours and often skilled labour
Tends to be time consuming to make and therefore you cannot produce on a large scale
Price charged per product is normally high because they are expensive to make

22. Batch Production
More products can be produced compared to job production because you do not have to consult your individual customers
Production is more efficient because the same product is made for a large number of customers – time is saved
Price is normally cheaper than “bespoke” products
Products are produced in limited quantities

23. Flow Production
Tends to be “capital intensive” – uses machinery rather than employees to make the product. This can have very expensive start-up costs
Production is continuous – workers work shifts so that the product is made 24 hours a day
Production is much quicker than job/batch production – more can be produced in one day
In flow production, firms can take advantage of “economies of scale”

24. 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.

25. Test Your Knowledge …
Which method of production should be used in the following examples?
Making t-shirts of varying colours and styles
Making tins of baked beans
Making luxury cruise ships to order, so each ship is a different design

26. Answer the Exam Questions
Test Your Knowledge …
Answer the Exam Questions