business theme 2 - business operations and production

production process

involves a business using its resources to produce goods and provide services that customers can buy

production methods - job production

• one off or bespoke products

• focus on customer needs and individual service

• specialist skilled workforce increases costs

• high profit margins

• longer production process

production methods - batch production

• longer volume of products

• some flexibility

• semi-skilled workforce

• some levels of automation

• productivity reduced when switching batches

production methods - flow production

• high volumes and low margins

• standardised production

• low skilled workforce

• highly automated process

• setting up expensive machinery increases costs