5.2 Production Methods

Question 1

Job production

Answer 1

Customized or tailor made

Meet requirements of customers

Product is finished before the next is started

eg Haircut, Suit, Medical Operation, Construction of a building

PROS:

• High quality
• High EE motivation
• Unique Products

CONS:

• Time consuming
• Labour intensive
• Need specialised labour & tools

Question 2

Batch Production

Answer 2

Producing numerous amounts of similar products.

Produce a group then start next batch

Eg. bakery, newspaper, clothes

PROS:

• Some economies of scale
• Some product variety
• Can diversify number of products sold

CONS:

• Some EE motivation
• Some degree of inflexability

Question 3

Mass Production

Answer 3

Producing large amounts of standardised products

Usually highly automated

Moves stations ( 1->2->3)

Eg. Cars, Electronics, Toys

PROS:

• High economies of scale & Lower unit costs
• Fixed costs are spread over a large quantity
• Low Labour costs
• Standardized products –> easy to sell

CONS:

• Large set-up costs
• Low EE motivation
• Less product variety
• Inflexibility –> Settings on machinery
• Higher stoage costs

Question 4

Flow Production

Answer 4

Same as mass production BUT continuous

Eg. Oil Rig