Different types of production process

Production

the transformation of resources into finished goods or services

The method of production used by a business will depend upon a number of factors

• The level of output required to be produced

• The nature of the product

• Whether the product is standardised or customised

• The level of automation used in production

Job Production

Manufacturers produce one product at a time as ordered by the customer

• High quality product

• Motivated and highly skilled workers

• Customised products can be produced

• Production is slow

• Labour costs are high

Flow production

Continuous manufacturing of standardised products, usually on a product line

• Low unit costs due to economies of scale (occurs when increasing output by a business leads to lower long-run average costs)

• Rapid production

• Usually highly automated (capital intensive - predominatly using machinery in the production of goods/services)

• Customisation is difficult

• Capital equipment can be expensive to product

Batch production

Groups of the same product are produced as a batch e.g. 1000 blueberry muffins

• Workers can specialise

• Production can take place as the previous ‘batch’ starts running out

• Requires careful coordination to avoid shortages

• Money is occupied in stock

• Completed products need to be stored