Production processes
Businesses providing can choose from three different types of production process. These are , and .
Job production
Job production is when individual products are made one at a time to meet specific customer preferences. An example would be tailor-made suits, which are made specifically to each customer’s measurements and tastes.
Batch production
Batch production involves making a set quantity of identical products. This quantity is known as a ‘batch’. The batch size could be ten, 10,000 or a million identical products. An example would be a bakery making a batch of 100 white bread rolls and then making a batch of 50 wholemeal bread rolls.
Flow production
Flow production involves continuously making identical products. This allows the production process to be heavily .
Advantages and disadvantages of each type of production
| Type of production | Advantages | Disadvantages |
| Job | High profit margins for bespoke products | Highly skilled staff are required, which increases costs |
| Employees may gain enjoyment from using their specialist skills | Highly skilled staff may not be available, which can make training staff very expensive | |
| Customers get exactly what they want | ||
| Batch | Able to make a variety of sizes or flavours | Not as flexible regarding customers’ tastes as job production |
| Can be partially automated | As batch production is not fully automated, costs may be higher than in flow production | |
| Can produce more products than job production | ||
| Flow | Able to make far larger quantities | In competitive markets for similar mass-produced goods, profit margins can be very low |
| Consistency in production means products are identical, which means customers know exactly what they are buying | Customers like products that are tailored to their specific preferences | |
| Highly automated process | Expensive to buy all the machinery needed for automation |
| Type of production | Job |
|---|---|
| Advantages | High profit margins for bespoke products |
| Disadvantages | Highly skilled staff are required, which increases costs |
| Type of production | |
|---|---|
| Advantages | Employees may gain enjoyment from using their specialist skills |
| Disadvantages | Highly skilled staff may not be available, which can make training staff very expensive |
| Type of production | |
|---|---|
| Advantages | Customers get exactly what they want |
| Disadvantages |
| Type of production | Batch |
|---|---|
| Advantages | Able to make a variety of sizes or flavours |
| Disadvantages | Not as flexible regarding customers’ tastes as job production |
| Type of production | |
|---|---|
| Advantages | Can be partially automated |
| Disadvantages | As batch production is not fully automated, costs may be higher than in flow production |
| Type of production | |
|---|---|
| Advantages | Can produce more products than job production |
| Disadvantages |
| Type of production | Flow |
|---|---|
| Advantages | Able to make far larger quantities |
| Disadvantages | In competitive markets for similar mass-produced goods, profit margins can be very low |
| Type of production | |
|---|---|
| Advantages | Consistency in production means products are identical, which means customers know exactly what they are buying |
| Disadvantages | Customers like products that are tailored to their specific preferences |
| Type of production | |
|---|---|
| Advantages | Highly automated process |
| Disadvantages | Expensive to buy all the machinery needed for automation |
