5.2 Advantages and Disadvantages of Operations Methods

Job production pros

Flexibility and choice

High quality

High profit margins

High worker motivation

Job production cons

High costs

Time-consuming

Cash flow problems

Batch Production pros

Some flexibility and variety

Economies of scale can be achieved

Lower risks

Batch Production cons

Less flexibility and variety than job production

High storage costs

Lower worker motivation

Higher production costs and takes more time

Mass/Flow Production pros

Large-scale production

Standardized quality

Lower costs of production

Mass/Flow Production cons

Set-up, running, replacement, and storage costs

Less flexibility

Lower worker motivation

Mass customization pros

Customer satisfaction and loyalty

Lower costs

Higher prices and profits

Mass customization cons

Handling returns may be difficult and result in losses

Higher costs for customization

Time