Production is the process of converting raw materials into finished products.
Production is carried out in order to produce goods and services that cater to our needs.
Production can be done in different ways.
The three most common ones are: Job production, Batch production and Flow production.
Job production is done when producing one single piece of product at a time. Each piece of product is specially designed to meet one particular customer's needs and specifications. In many cases, the quality of the product is higher compared to products that are mass produced.
Example: Wedding gown.
-Product is according to customers' specifications.
-There is no finished goods stock.
-Workers are motivated as they carry out a variety of tasks.
-It is expensive because it requires multipurpose machinery and skilled versatile workers.
-Production cost for each unit is high due to short production runs.
The name says it all. Batch production is the manufacture of different versions of the same basic product in batches. There is a repetition in the production.
-The same machinery are used on different settings to produce a wide range of similar products.
-A variety of tasks are carried out in the production, resulting in job satisfaction for workers.
-Production cost for each unit is high because of the short production runs.
-Multipurpose machinery and skilled versatile workers are still needed, which results in high costs.
-Resources are needed for changeover between batches.
-Warehouse space is needed to store raw materials and finished goods.
Flow production is a mass production. Products are continuously produced, flowing from one stage to another without stopping until completion. Workers carry out repetitive tasks, aiming to produce products as quickly as possible without the loss of quality.
-Economies of scale is easily achieved due to production in large quantities of standardised products.
-Low level of "work in progress".
-Workers with low level of skills are needed.
-Low production cost for each piece of product results in low prices for the customers.
-Less job satisfaction for the workers due to boredom by doing repetitive tasks.
-Large stock of raw materials is needed to prevent stockout.
-Continuity of demand is required. Constant overstocking of finished goods will happen if the demand of products decreases.
-Cost of setting up the production line is very high.
Task: Flow Diagram
*Click on the image to enlarge it.*
The flow diagram that I've created is a summary of what I've written in this entire blog post.
Have fun reading! :)
Cuizon, Gwendolyn. What is Production. 24 February 2009. 13 December 2012 <http://suite101.com/article/what-is-production-a96998>.
dineshbakshi.com. Methods of Production. 14 December 2012 <http://www.dineshbakshi.com/as-a-level-business-studies/operations-management/104-revision-notes/1244-operations-planning>.
tutor2u. Methods of production. 14 December 2012 <http://www.tutor2u.net/business/production/methods-of-production.htm>.