Unit 5.2 Glossary of key terms - Operations methods

Batch production

Operations method that involves producing a set of identical products, with work on each batch being fully completed before production switches to another batch, which may have slightly different specifications.

Capital intensive production

This refers to the manufacturing of a good or provision of a service that relies mainly on the use of machinery and capital equipment, e.g., conveyer belts and automated production systems.

Job production

Operations method that involves the output of a customized or one-off good or service which meets the specific needs of a specific customer.

Labour intensive production

This refers to the manufacturing of a good or provision of a service that relies mainly on the use of labour inputs (physical and intellectual effort), e.g. bespoke tailors and management consultants.

Mass customization

Operations method that combines the benefits of mass production with the personalization of job production in order to meet the individual needs and preferences of customers.

Mass production

Also referred to as flow production, this operations method involves different production processes continuously and progressively carried out in sequence, with a high volume of output of standardized products.

Standardization

This means that products are mass manufactured to an identical standard, with all output being homogeneous, e.g., particular brands of bottled water, chocolate bars, and car windscreen wipers.