Production and Efficiency

Production and Efficiency

Job Production​- This is when a one-off item is produced such as a tailored suit

  • + Can charge higher price,
  • + work more interesting for staff
  • Cost per unit is high,
  • finding staff with sufficient skills hard

Batch Production​- creating a small number of identical items

  • Allows variation in product being made,
  • speedier than job production
  • Costlier to set up as machines,
  • Cost p/unit still higher as machinery

Flow Production​- The continuous production of the same item

  • + Unit labour costs are extremely low,
  • + Huge volumes allow demand to be met
  • High initial costs as machines (automation),
  • Need to be identical products to suit

Cell Production​- Setting up a small production line so items can be flexibly produced

 

  • + Group working more ideas,
  • + small highly skilled cell
  •  Heavily reliant on people costs high,
  • Production volume not as high as flow