IB Business Management – Operations Management

5.2 Production Methods – Features of Production Methods

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MAIN FEATURES OF THE DIFFERENT PRODUCTION METHODS

Job Batch Flow/Mass Cellular

 Group of  Mass  Splitting flow

 Single one-off
Main feature identical production of production into
items
products pass standardised self-contained
through each products groups that are
stage responsible for
together whole work units

 Labour and  Specialised,  Well-trained and

 Highly skilled
Essential machines often multi-skilled
workforce
requirements must be expensive, workforce
flexible to capital prepared and
switch to equipment - but able to be
making can be very flexible and
batches of efficient accept a more
other designs  High steady responsible style
demand for of working
standardised
products

 Some  There is much

 Able to  Low unit costs
Main economies of autonomy in
undertake due to the
advantages scale decision making
specialist constant
 Faster  Responsibility to
projects or working of
production meet production
jobs, often machines, high
with lower unit targets and
with high labour
costs than job accountability of
value added productivity
production quality standards
 High levels of and economies
 Some flexibility – this can lead to
worker of scale
in design of
motivation
 IB Business Management – Operations Management
5.2 Production Methods – Features of Production Methods

product in  JIT stock high levels of

each batch management motivation
easier to apply  Specialisation
than with other between and
methods within teams can
lead to high
productivity

 Inflexible - often  Lower output

 High unit  High levels of
Main very difficult than traditional
production stocks at each
limitations and time mass and flow
costs production
consuming to production
 Time stage
switch from one methods
consuming  Unit costs likely
type of product  Can be capital-
 Wide range of to be higher
to another intensive, with
tools and than with flow
 Expensive to set specialisation
equipment production
up flow-line needed for each
needed
machinery and cell
each section  Capacity
needs to be utilisation is lower
carefully than mass
synchronised production and
therefore
average fixed
costs can be
higher

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