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Methods of Production - Coggle Diagram
Methods of Production
Batch Production
Definition
Involves simultaneously producing a limited number of identical products (known as a batch). Work on each batch is fully completed before production switches to another batch using the same staff and machinery. For example, a small bakery might produce 12 loaves of bread before changing production systems to bake 24 blueberry muffins. Clothing outlets such as H&M and Gap have their garments produced in batches of different sizes and colors.
Advantages
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A variety of products can be made, customers have more choice. E.g. birthday cakes produced in batches can still be customized to the needs of individual customers.
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Disadvantages
Storage is important, as batch production result in a high amount of stock. Storage costs and insurance increases production costs.
Boredom. As all systems of divisions of labor, jobs get repetitive and may bore the employees.
Inflexible, as once the production run for a batch has started, it is difficult to switch to or work on another batch. This can delay overall production process.
High production costs, heavily relies on machinery and equipment.
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Job Production
Definition
Involves customizing an individual project from start to finish, tailor made to meet the specific requirements of the client. E.g. products such as buildings, wedding dresses, Hollywood movies, and many others. A single worker or a group of workers handle the complete job. Job production ranges from tasks involving little to no technology to complex jobs that can’t be completed without high technology.
Advantages
Unique, high-quality products are made.
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Products are made according to individual customer needs, hence improves customer satisfaction.
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Disadvantages
Very labor-intensive, so selling prices are usually higher.
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In some cases, special materials or equipment are required for production
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Mass and Flow Production
Definition
The manufacturing of large amounts of a standardized product. It often involves in the assembly of individual components, with parts (components) bought from other companies. It tends to be capital-intensive with many tasks relying on automation. Therefore unit costs of production are relatively low.
Advantages
Capital Intensive, output is on a large scale.
Most cost-effective methods, and spread over a high volume of output thereby reducing average fixed costs through technical economies of scale.
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Labor costs are low, as relatively unskilled workers are required to operate much of the machinery.
Disadvantages
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Inflexibility, once the production process begin, there is little chance of altering the design/specification.
Capital-Intensive, huge setup costs (to buy equipment and machineries).
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Cell Production
Definition
Refers to the manufacturing system where the workforce is divided into self-contained teams designed to complete a particular manufacturing process/product
Advantages
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Motivated, hence improving team work and team spirit.
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