5.2 Production methods

Introduction

• Ways in which goods and services can be produced:
  • Job production/customized production: producing a one-off item specially designed for each customer.
  • Batch production: producing limited number of identical products each item in the batch passes through one stage of production before passing on to the next stage.
  • Flow production: producing items in a continually moving production line - also known as line production. This can be a continuous 24-hours-a day method.
  • Mass production: producing large quantities of a standardized product.
  • Process production: producing standardized goods, typically in bulk quantities, by using a continuous input of materials and other resources.
  • Mass customization: use of flexible computer aided production systems to produce items to meet individual customers’ requirements at mass production cost levels.
  • Cell manufacturing/production: lean method of producing similar products using cells, or groups of team members, to facilitate operations by eliminating setup time between operations.

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Production methods - making the choice

• Factors that will influence which production method is appropriate for a particular business/product:
  • Size of the market
  • Amount of capital available
  • Availability of other resources
  • Market demand exists for products adapted to specific customer

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