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Methods of Productions (Job Production (Advatanges: (Often require skilled…
Methods of Productions
Job Production
Products are made specifically to order
Advatanges:
Often require skilled labour
Costs are high because it require high skilled labour intensive
Materials might have to be purchased leading to a higher cost
Advantages:
Suitable for personal service like cakes
Product meets exact requirements from customer
Workers have more varied job = more motivation
Lean Production
When large quantities of a product are produced in a continuous process
Advantages:
High output of the same product
Costs are kept low so prices of products are lower
Economies of scale in purchasing raw materials
Disadvantages:
Boring system for workers. Workers won't be motivated
Require a lot of storage so cost on inventory is high
Capital cost of setting up the production
Batch Production
Similar products are made in block or batches
Advantages:
Flexible way of working & production can easily be changed from one product to another
Give some vary to worker's job = more motivated
Disadvantages:
Have to reset/change machine when changing product
Warehouse will be needed for raw materials and components