"Low costs, low prices, worker motivation and customisation"
"Do my customers require highly customized or one-off products?"
"Can I afford to spend more time and skilled labor on each product?"
"Is quality more important than quantity in my business?"
"Well if the answer is 'YES!!!', then this might be appropriate for your firm to use JOB production"
JOB PRODUCTION refers to the case when production is organised to produce one-off products at a time, rather than the same product at the same time.
PROS: Job production enables specialised products to be produced and tends to be motivating for workers, because they produce the whole product and can take pride in it. It is sometimes referred to as customised production.
CONS: However, this production method tends to result in high unit costs, it often takes a long time to complete, and it is usually labour-intensive. The labour force also needs to be highly skilled, and this is not always easy to achieve.
"Do I need to produce different varieties using the same equipment?"
"Is there a moderate demand for my product—not too high or too low?"
"Can my production process be easily stopped and restarted?"
"Well if the answer is 'YES!!!', then this might be appropriate for your firm to use BATCH production"
BATCH PRODUCTION on the other hand refers to the case when production is organised to produce identical products in groups ('Batches') Each batch goes through one stage of the production process before moving on to the next. Machines can be changed or reset between batches to make different products.
It is 'STOP-START-STOP-START-style' in which one batch is completed before the next one starts.
PROS: Batch production allows firms to use division of labour in their production process and it enables economies of scale if the batch is large enough, which both lead to lower average costs.
CONS: The work may well be boring and demotivating for the workers. If batches are small, then unit costs are likely to remain high.
Can be time-consuming as there is often a need to clean and adjust machinery after each batch.
"Is there a high and constant demand for my product?"
"Can my product be made using a standardized, repetitive process?"
"Can I invest in machinery/equipment to automate the production process?"
"Well if the answer is 'YES!!!', then this might be appropriate for your firm to use MASS/FLOW production"
MASS & FLOW PRODUCTION as the name suggests refers to the case when production is organised so that it 'FLOWS' in 'MASS' quantities in many cases 24/7.
PROS: With flow production labour costs tend to be relatively low, as the process is highly automated.
planning of inputs relatively simple and this can lead to the
minimisation of input stocks through the use of just-in-time (JIT)
stock control. Quality tends to be consistent and high, and it is easy to check the quality of products at various points throughout the process.
CONS: The main disadvantage is the high initial set-up cost.
Capital-intensive, high-technology production lines are going to cost a great deal of money. In addition, the work involved tends to be boring, demotivating and repetitive.
"Is my product created through a continuous chemical, physical, or mechanical transformation of raw materials?"
"Does my production involve ongoing, irreversible processes that can’t be easily stopped or altered once started?"
"Is my production highly automated, with minimal human input, focused on processing bulk materials into standardized outputs?"
"Well if the answer is 'YES!!!', then this might be appropriate for your firm to use PROCESS production"
Process production
The production of goods using this method usually requires inputs
for continuous conversion into finished products. These inputs,
such as heat, time and pressure, can undergo thermal or chemical
conversion in producing finished products. A good example of this
is the continuous flow of crude oil into an oil refinery, which uses
heat, gases and chemicals to produce a range of industrial
products as well as gasoline. The product typically cannot be
disassembled into its constituent parts. For example, once it is
produced, a tin of paint cannot be broken down into its ingredients.
Process manufacturing industries include chemicals, food and
beverage, petrol and paint.
The way process production systems are designed means that to
achieve effective and efficient operation, output must be
continuous over a long period of time. Disruptions or accidents can
force production to halt, and it is expensive and time-consuming to
restart production.
"Can I offer personalized or customizable products without significantly slowing down my production process?"
"Do I use modular designs or flexible manufacturing systems that allow for variations in final products?"
"Is there strong demand for personalised products at affordable prices?"
"Well if the answer is 'YES!!!', then this might be appropriate for your firm to use MASS-CUSTOMISATION production"
MASS CUSTOMISATION occurs thanks to technological advancements that make production still as cost effective as mass-production, but with the added flexibility of job production and less monotony for workers.
These have allowed much quicker developments of new products, designs that feature many common components and robotic machinery that can be switched to making different parts. Developments in the organisation of the production flow lines have also reduced the alienating effects of typical mass production. The emphasis on repetitive, boring tasks has been a major factor in poor worker motivation. The mass customisation process combines the latest technology with multi-skilled labour forces to use production lines to make a range of varied products. This allows the business to move away from the mass marketing approach with high output of identical products. Instead, focused or differentiated marketing can be used which allows for higher added value – an essential objective of all operations managers. So, for example, Dell Computers can make a customised computer to suit the customer’s specific needs in a matter of hours. By changing just a few of the key components, but keeping the rest the same, low unit costs are maintained with greater product choice.