Operation Methods

What are operation methods?

Specific methods by which production take place

Job production

Involves customising an individual product from start to finish made to meet specific requirements

Advantages of job production

• For consumers → high quality, highly skilled labour used

• Motivation for workers → proud of making finished product

• Flexibility - changes can be made along the way if that hasn’t started yet

• Uniqueness - act as a USP for a business → custom made

Disadvantages of job production

Time consuming

Labour intensive → expensive operations method → high working hours

Few economies of scale → good is unique rather than produced in large batches

Irregulaity of orders can cause cash flow problems

Batch production

producing a number of identical products. Work on each batch is fully completed before starting another

Advantages of batch production

Economies of scale → machinery to produce large quantities

Specialisation leading to increased productivity

Variety of products can be made

Variety reduces risk of demand falling in that single product

Disadvantages of batch production

Storage is important → batch can result in high amount of stock → increases costs

Boredom → decrease in productivity

Inflexibility → once production for one batch has started it may be difficult to switch

Flow production

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

Advantages of flow production

Large volumes of output → high revenue for firms

Cost effective → costs spread out over high output reducing output decreasing fixed costs, technical EOS

Machinery and equipment → products are of standardised quality

Disadvantages of flow production

Monotonous → at the same part of the flow the whole day

Limited choice → customers cannot meet individual needs

Expensive set up

Error in one part will mess up flow

Flow production process

Material and labour inputs → resources and physical input

Then various stages of continuous flow

Finished products → distribution and sale as well as storage

Capital intensive

Relies heavily on machinery and automated system

Mass customisation

Operation method uses flexible manufacturing systems to mass produce product starts immediately

Standardisation

Producing an identical product in large quantities