Production methods

1. Job production
2. Batch production
3. Mass/Flow production

Job Production

Job production is the manufacture of individual 'one-off' or unique items made to customer
specifications. The product is seen through the whole process, from start to finish, by an
individual or group of workers. The production of the next individual item does not begin until
the previous job is complete.
Job production is typically performed by skilled experts to a high standard and usually allows for
considerable flexibility and customization in the finished product

Benefits Drawbacks

Since highly customized products are made as Since highly skilled labor is required for job
per demands of customers, such production productions, labor cost is usually a high
methods leads to high level of customer proportion of total cost of firm. Further
satisfaction training of labor consumes even more cost

Highly customized products lead to premium Since less number of products is made, average
prices being charged. The market targeted is cost remains high, leading to low economies of
less price sensitive, so high prices do not affect scale
demand.

Firms that adopts job productions usually Firms with job production may be unable to
develops unique brand image with high brand meet sudden rise in demand thus leading to
identity thus helping such firms in survival and unmet demand and lost sales
growth

Profit margins are high because of high value Delay in customer orders may lead to conflicts
offered to customer and penalties

Large market share is gained in terms of value

in niche markets

Skilled employees may feel pride in the

challenge associated with making customized
product leading to high motivation for them

Batch Production:
Batch production involves the production of identical products made in groups (batches). The
group remains together as it passes through each stage of production until all processes are
complete.
Production is less personal in that products are not individualized to customer requirement; the
focus is on making high quality products at an affordable price. Workers specialize and are less
likely to be highly skilled or multi-skilled. Specialized equipment is probably used since it is
possible to get higher capital utilization. Products are cheaper, but capital cost is significantly
higher than for job production. Typical products produced in batches include bakery products,
clothing, 'fast-food', shoes and pharmaceuticals

Benefits Drawbacks

Production levels are relatively higher than job Capital investment is required to buy machines
production, hence better economies of scale
and reduced average cost

Reduced prices in comparison to job Readjustment and cleanliness of machines for a

production, thus demands of medium to large new batch every time lead to downtime (idle
markets may be satisfied. time between batches) causing efficiency level
to reduce

Even though larger quantities are produced Since inventories remains in machines for a
than job production, there is still flexibility if longer time period, lead to higher maintenance
firm uses process innovation. Each batch can of work in progress inventory. Any breakdown
be changed to meet customer wishes. It is may cause WIP inventories to be wasted.
particularly suitable for a wide range of similar
products. The settings on machine can be
changed to specifications, such as different
cloth sizes.

Employs can concentrate on one operation Reduced customization level in comparison to

rather than the whole task. This reduces the job production. However if flexible production
need for costly skilled employees methods are adopted, firms may still be able to
offer variety to customers

May cause demotivation of workers since a

single may have to perform repeated task on
same machine.

If batches are small, then unit cost will remain

relatively high

Money will be tied up in WIP, since an order

cannot be dispatched until complete batch is
 ready

Flow production/ mass production:

It is defined as very large-scale production of a standardized product, where each operation on a
unit is performed continuously one after another, usually on a production line.
Production is organized in a sequence so different operations can be carried out one after another
in a continuous sequence. Flow production is also known as mass production, as it tends to be
used for production of large number of standard products such as cards, newspapers, cement,
breakfast cereal. Main features of a flow production are:
● Large quantities are produced
● A simplified or standardized product
● A semi-skilled workforce, specializing in one operation only:
● Large amounts of machinery and equipment
● Large stocks of raw material and components

Benefits Drawbacks

Unit costs are reduced as firm gain from Set up is high, need huge capital investment
economies of scale

In many industries, production is highly As standardized products are produced,

automated and production is controlled by customer satisfaction is reduced due to lack of
computers. This leads to high quality specialized products being offered.
standardized products with very less or no
defects

Since much of the production work is Repetitive and boring operation manuals cause
controlled by machines. Labor need is reduced lack of interest and demotivation among
and hence labor cost. workers

Mass markets are targeted, leading to high Since whole production system is
sales and high market share in terms of interdependent, breakdown can prove costly
volume.

Large stocks of inventory lead to high

inventory holding cost

In 1990s, flow production processes were upgraded by Japanese manufacturer to reduce some
of its problems and bring more efficiency such as JUST IN TIME. Some manufacturer attempted
to introduce some element of customization in flow production. For example, different range of
cars were produced on same production line with standard basic model but with different colors,
engine size, trim and interior design.
Mass customization:

Is a production process with mass production techniques where products are produced in huge
quantities but output is (tailored to some extent) as per customer requirement.
Combined with JIT and other process innovation methods during production lead to reduced
inventory cost and greater flexibility.
Benefits Drawbacks

Mass customization leads to increased value Capital cost of flexible machinery is high
addition for customer with a low unit cost
benefit of mass production

Business can charge premium prices to Handling variety of customer orders may
customer for the customization they are become difficult for firm leading to
offered. High prices (in comparison to other inefficiency
mass producers) with low cost leads to higher
profits.

More variety offered to large group of Dependence on highly automated and

consumers leads to better brand image being integrated systems increase reliability issues, as
developed and increased customer satisfaction breakdowns may increase cost