IGCSE Business Studies

4.1.2 The Main Methods of Production

Learning Outcomes

• An understanding of the features, benefits and limitations of job, batch and flow production.

• The ability to recommend and justify an appropriate production method for a given situation.

There are 3 main methods of production

• Job Production

• Batch Production

• Flow Production

What do you think the difference is?

Job Production• Job production involves firms producing items that meet

the specific requirements of the customer. • Often these are one-off, unique items• With job production, a single worker or group of workers

handles the complete task. • Jobs can be on a small-scale involving little or no

technology. However, jobs can also be complex requiring lots of technology.

• The goods are normally only produced once there is an order for them

Batch Production

• Goods are produced in lots or batches• Goods produced are similar, or differ in one

respect such as shape or colour or size• When one batch is finished the machines may

have to be re-set before moving on to the next batch

• Examples include bread, sweets and clothes in different sizes

Flow Production

• Under this method, goods flow along a production or assembly line.

• They pass form one stage to the next without a break

• The number of stages varies according to the product

• There is a worker/machine at each stage who does one operation

• Flow production is used in MASS PRODUCTION

Job, Batch or Flow?

Task - Video

• Watch the video ‘Production methods’

• Write a list of what products are being produced and what production methods are being used.

Task - Video

• Watch the video. ‘Production methods and efficiency’

• Think about the advantages and disadvantages of job batch and flow production

Questions (discuss in pairs)1. Which method requires the most highly skilled workers?

Why?2. Which method is likely to lead to workers getting bored at

work? Why?3. Which method needs the most expensive equipment?

Why?4. Which method is likely to have the highest productivity?

Why?5. Which method can produce goods the most quickly? Why?6. Which method allows a company to tailor their products

to meet customers needs?7. Which method will be able to produce a good at the

cheapest average cost? Why?

Task

• Write a list od advantages and disadvantages for job, batch and flow production

Advantages and disadvantages of Job Production

Advantages•Craftsmen get a chance to use their skills•Every product can be different•High quality can be achieved

Disadvantages•Labour intensive•Specialist labour is very expensive•Production is slow•The final product can be expensive

Advantages and Disadvantages of Batch

ProductionAdvantages

– Cost per unit is lower than ‘jobbing’

– Several items can be produced on one production line

– Batch size can vary to suit the order

– Identical product produced

– Batches can be varied to suit customer requirements

Disadvantages– Small batches increases

retooling time (down time)

– Storage costs increase – work in progress and finished goods

– May involve repetitive jobs which can be demotivating

Advantages and Disadvantages of Flow

ProductionAdvantages

– Ideal for mass produced goods

– Lowest cost– Cheap, low skilled

labour needed

Disadvantages– Requires a huge

investment in machinery– Products must be

standardised– Inflexible – assembly lines

can not be easily adapted for different products

– Repetitive tasks can be extremely demotivating for workers

– A machine breakdown can cause production to completely cease

– Often expensive to shut down the production line – e.g. if demand is low

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Methods of productionfinal thought

• It is often difficult to classify exactly which method is used to make a product– e.g. Car production involves flow production

(assembly line) and batch production (engine blocks)

Quiz Time

• method of production quiz

• First person to get a full score gets a house point

Challenge – Evaluating methods of production

Recommend and justify an appropriate production method (or methods) for the following products

Exam Question

• Tiny Toys currently operates in a niche market making customised toys for wealthy customers. The company has an excellent reputation and the owner is considering expanding to sell toys to the mass market.

• Evaluate the most appropriate production method for Tiny Toys if they decide to expand (8 marks)