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3.1.1 Methods of production

3.1.1 Methods of production

Job production

Definition

Job production: making one item, or a very small number of items, to a customer's own specification before the next order is started.

  1. One-off orders: each product is made to what one customer has asked for, so no two jobs are identical and the work starts again from scratch each time.
  2. Labour-intensive: skilled staff do most of the work using general tools, rather than a machine line built for one design.
    1. A bespoke kitchen is measured, built and fitted by joiners for one house, so the same design is never repeated.
  3. High unit cost: skilled wages and the hours each item takes are carried by a single unit, so the cost of each unit is high and the selling price has to be high too.
  4. Very flexible: size, materials and design can change with every order, so the business can take on unusual work that a production line could not handle.
  5. Motivating work: staff use a range of skills and see a finished product they can take pride in, which helps a small firm keep experienced workers.
Example
  • JCB builds machines to order, fitting the attachments and cab a particular buyer needs for the site the machine will work on.
  • A tailored suit is cut to one person's measurements, and a wedding cake is designed for one couple.

Flow production

Definition

Flow production: making large quantities of identical products that move continuously along a production line, with the same task added at each stage.

  1. Continuous and standardised: the product never stops moving, and every worker or machine repeats one task on every unit that passes, so each unit comes out the same.
  2. Capital-intensive: machinery and automation do most of the work, so fewer workers are needed, but the cost of setting up the line runs into millions of pounds.
  3. Low unit cost: the cost of the line is spread across a very large output and materials are bought in bulk, so each unit costs little to make.
  4. Needs high and steady demand: if sales fall, the line runs below capacity, the set-up cost is spread over fewer units and the cost of each unit rises sharply.
  5. Repetitive for staff: doing one short task all day is boring, which can lead to mistakes, absence and staff leaving.
  6. Expensive to change: retooling the line for a new design costs a great deal and stops output while it happens, and one breakdown halts every stage at once.
Example
  • Nissan's Sunderland plant builds hundreds of thousands of cars a year on a moving line, so each car costs far less to build than a hand-made one.
  • Warburtons mixes, proves, bakes, slices and bags loaves in one continuous run, turning out identical loaves by the thousand.

job vs flo.png

When job production suits a business

  1. Job production suits a business whose customers each want something different, because the specification changes with every order.
  2. It suits low volumes, where demand is far too small to repay the cost of building a production line.
  3. It suits products customers will pay a premium price for, since the high unit cost has to be covered somehow.
    1. A made-to-measure suit sells for hundreds of pounds more than an off-the-peg one because the fit is cut for one body.
  4. It suits a business competing on skill, quality and reputation rather than on price, such as a bespoke furniture maker.

When flow production suits a business

  1. Flow production suits a business selling one standard product in very large numbers, where every customer is happy to receive the same thing.
  2. It suits demand that is high and predictable, because the line has to run near capacity for its set-up cost to be worth paying.
  3. It suits a business competing on price, because the low unit cost allows a low selling price and still leaves a profit on each unit.
  4. It needs a business with the finance to buy the machinery in the first place, which a new start-up rarely has.
Note

Once a method is chosen, a business can raise output from the same resources using lean production and just in time, which the article on efficiency in production covers.

Exam technique
  • For recommend whether the business should use job or flow production, actually decide, and base the decision on how large and how varied the demand is.
  • The mistake to avoid is calling flow production cheaper without saying that this only holds at high output, because a half-empty line is expensive per unit.
  • AQA names job and flow production only, so do not write about batch or cell production.
Self review
  • What is job production?
  • Why is the unit cost of job production high?
  • Why does flow production need high and steady demand?
  • Give one drawback of flow production for the workers on the line.
  • Which method suits a maker of made-to-measure curtains, and why?
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3.1.1 Methods of production Revision Guide

  1. GCSE
  2. /Business
  3. /3.1.1 Methods of production

Revision notes for AQA GCSE Business 3.1.1 Methods of production. Open the guide for explanations and worked examples. Written against the AQA GCSE Business (8132) specification, so the content matches what's examinable rather than general Business background.