5.2 Production Methods Key Ter

Business IB 11

Batch production

involves producing a set of identical products. Work on each batch is fully complete before production switches to another batch.

Capital Intensive

means that the manufacturing or provision of a product relies heavily on machinery and equipment. Example – automated production systems. Hence, capital costs account for most of capital intensive firm's overall cost of production.

Flow production

is a form of mass production that uses continuous and progressive processes, carried out in sequence. When one task is completed, the next stage of production starts immediately.

Mass customization

is an operations method that uses flexible manufacturing systems to mass produce products that meet individual customer needs and wants

Mass production

is the large-scale manufacturing of a homogenous (standardized) product.  Unit costs of production are relatively low when using mass production methods.

Job production

involves the manufacturing of a unique product or one-off job.  The job can be completed by one person (such as a tailor) or a team of people (such as architects and engineers).

Labour intensive

means that productions relies heavily on labour inputs, so the cost of labour accounts for the largest proportion of the firm’s overall production costs.  It is most apparent in the provision of personalized services.

Standardization

means producing an identical or homogeneous product in large quantities, such as printing a particular magazine, book or newspaper.