Production methods
- Job production makes one-off products to a customer's order, such as a wedding dress or a bridge. Quality is high and each product is unique, but it is slow and expensive.
- Batch production makes groups of identical products, such as loaves in a bakery.
- Flow production is continuous mass production on an assembly line, such as cars or cans. It has low unit costs, but it is expensive to set up, less flexible and can involve repetitive work.
Efficiency and technology
- Productivity is the output per worker in a given time. Lean production means cutting waste in every part of production.
- Just-in-time (JIT) stock control means stock arrives exactly when it is needed. It cuts storage costs, but a late delivery can stop production.
- Automation and robots can raise output and consistency, but cost money and may reduce jobs.
Managing stock
- Some businesses keep buffer stock (a minimum level) just in case. A bar gate stock graph shows the maximum stock level, the buffer stock, the re-order level and the lead time (the time between ordering and delivery).
Quality
- Quality control checks products at the end of production. Quality assurance checks quality at every stage, with all staff responsible. Total quality management (TQM) makes quality part of the whole business's culture.
- Good quality builds reputation, reduces returns and allows higher prices, but it costs money in training and checking.
Key terms
- Job production
- Making one-off products to a customer's order.
- Batch production
- Making groups of identical products.
- Flow production
- Continuous mass production on an assembly line.
- Productivity
- Output per worker in a given time.
- Lean production
- Reducing waste in all parts of production.
- Just-in-time
- Stock control where stock arrives exactly when it is needed.
- Buffer stock
- The minimum stock kept in case of emergencies.
- Lead time
- The time between ordering stock and its delivery.
- Quality control
- Checking products at the end of production.
- Quality assurance
- Checking quality at every stage of production.