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4.1.4 Production methods

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Production is the process involved in making or manufacturing products. A business will add value to raw materials with the Aim of making a profit.

Job Production

One at a time, custom and handmade.

Examples: Wedding Dresses, Bespoke Jewellery.

Advantages

  • Bespoke, high-quality products creating USP
  • Simple and cheap to set up
  • Products are unique to customer needs

Disadvantages

  • Extremely Labour intensive
  • Long to produce
  • Expensive unit Cost

Batch Production

Groups made together (white rolls, brown rolls, gluten free).

Examples: Bakers Batch of Rolls.

Advantages

  • Lower unit costs than job
  • Offers some variety of products
  • Production is flexible as different batches can be made

Disadvantages

  • Repetitive production line — efficiency may decrease over time
  • Higher start-up costs than job

Flow Production

Mass-produced, standardised and consistent.

Examples: Soda, Canned Foods.

Advantages

  • Low labour costs
  • Large number of units produced
  • Economies of scale — bulk buy raw materials
  • Low unit costs

Disadvantages

  • High startup costs for machinery and production line
  • Low employee motivation — employees usually doing the same job on the production line
  • Issues in one part of the production could affect the entire process
  • Ongoing maintenance costs
  • Typically, lower quality than job

Mass Customisation

Mass-produced then customised.

Examples: Cars, Motorised Parts, Kitchens.

Advantages

  • Advantages of flow
  • Can be customised during the production process — adds a USP

Disadvantages

  • Disadvantages of flow
  • Extra costs
  • Additional step on production process to customise (such as a different car interior cloth -> leather)

4.1.3 Maintaining and improving quality

2.1.1 Aspects of the Market