Production involves a process of changing various resources into finished items or goods and services. How goods have been produced has a massive impact on quality, uniqueness, and the amount required.
Understanding Job Production
Job production is used to produce unique or ‘one-off’ items that require both individualized costings and planning. A key characteristic of such things is that there are typically limited chances for reordering the production. For example, constructing a unique building requires careful planning and structuring as it is no use realizing the foundations are wrong when the first floor has already been built. One of the main benefits of this production method is that it enables items to be made to unique specifications, resulting in a price to reflect such detailed work.
There are several core characteristics of job production, which include the following: high-end products, specialized labor, high set-up capital, flexible and dedicated worker motivation. Due to these pieces’ uniqueness, it is also often necessary to invest in special equipment or machinery.
Understanding Batch Production
As the name suggests, this approach produces batches or groups of identical goods being made, such as size ten dresses or size 12 jeans. A significant advantage of this method is that it is usually more cost-effective than job production. However, unless one is careful, the batch method may result in high amounts of stock left sitting around during the process. Further benefits of batch production are that it does not require highly specialized workers, thus keeping costs low, and a broader market can be reached.
Within batch production lies the opportunity to fulfill repeat orders more quickly and conveniently, thus saving time and money to increase business profits. This method may also be utilized in creating merchandise for specific events such as concerts or music festivals.
What is Flow Production?
Flow production is sometimes known as mass production. It is most commonly used in assembly lines such as car factories where items are frequently moving on from stage to stage until each item is completed. For this production method to be successful, it must be managed efficiently as fixed costs will need to be spread. Flow production typically involves goods being processed on a conveyor belt and requires a relatively high investment level.
Again, this approach does not need expensive or highly skilled workers, in contrast to job production methods. Production will usually occur in a factory with specific equipment, which means there is limited flexibility for employees.
What is Lean Production?
Introduced in Japan, lean production aims to increase productivity and use fewer resources by eliminating aspects that fail to increase product value. This method primarily involves reducing the use of various resources such as materials, time and workers, teamwork, and flexible production. Advantages associated with lean production include fewer costs yet maintaining standards, adaptable to client needs, reduced product development time, and more skilled workers.
As highlighted above, several essential production methods include batch, flow, lean, and job production, all of which have key strengths and limitations. As each technique is best suited to specific areas within a business, it is crucial to ensure; this is the practice case.