Operation methods

5.2 Oxford

Job production

Job production

Job production is the production of a special “one off” product made to a specific order (for one customer). It requires clear objectives and proper planning.

Advantages of job production.

• Mark-up is likely high

• Clients get exactly what they want

• Likely to motivate skilled workers to focus on individual processes. 

• Flexible. 

Disadvantages of job production.

• Expensive and requires skilled workers

• Time consuming

• Might fail and reflect badly on the business

• Labour intensive.

Batch production

Batch production is the production of a group of identical products.

Advantages of batch production

• Can achieve economies of scale

• Customers have more choice than mass production 

• Deal with unexpected orders

• Useful for trialling products. 

Disadvantages of batch production

• Lose production time when machines need to be recalibrated (down time)

• Need to be able to hold high stocks

• Sizes of batches depend on the capacity of the machinery (or labour) allocated to them. 

Mass production

Mass production is production of a high volume of identical, standardised products. Careful planning required

Advantages of mass productions

• System may need little maintenance

• Cater for large orders, considerable economies of scale

• Labour costs are low

• Can respond to an increase in orders very quickly. 

Disadvantages of mass productions

• Set up costs are usually high

• Breakdowns are costly

• Business is dependent on a steady demand 

• System is inflexible if demand is very low. 

• Demotivating for workers. 

Mass individualised customisation

Mass individualised customisation combines mass production with the personalization of custom made products for marketing products.