What is Production? Methods of Production

Production simply means creating a product. Process that converts raw materials into goods.

Methods of Production

To discuss about these three methods of production, I will take a shoe company as an example.

1. Job Production

Job production means producing products one at a time. A shoe company makes many shoes but where there are a few of those custom or unique shoes that are not standard. Shoes with different specification, looks or quality that satisfies the customer's order.

Advantages

• Product satisfies customer's specifications
• Advance technology that is able to more with versatile labour
• No finished goods stock

Disadvantages

• Short production of those shoes increase production costs for each unit
• Cost for advanced technology and professional labour will take up more cost

2. Batch Production

The process involves creation of different sets of the same basic product in batches. Shoes that are of the same type but different colour or size are manufactured through batch production. There is some repetition of production.

Advantages

• Suitable for a wide range of products of the same line/model of shoes which use the same machinery only with different settings.
• More styles of the product (other than one same shoe) so workers/staff will have more job satisfaction.

Disadvantages

• Relatively short production runs result in higher costs per unit
• Machinery and multi-skilled labour adds up to more cost
• Space will be more occupied for raw materials and finished goods

3. Flow Production

Mass production. Work is completed from one operation the proceeds on to another stage without stop. It is a continuous process where raw materials move through stages until completion. Socks can be a good example of flow production. From cotton to sewing and to finish, mass production through stages of production are involved.

Advantages

• Work in progress is at low level and slower
• Not much specialized labour required throughout the process
• Mass production os fixed goods will lower the average costs which means lower prices for customers

Disadvantages

• Large amount of raw material needed to prevent running out of stock
• If demand varies, constant amount of overstocking of finished goods will happen
• Repetitive job can lead to workers having less job satisfaction
• Setting up production lines will cost high