Production Options

Types of Production Options

• Job Production: This method involves producing bespoke products made to order, one at a time. Each product is unique and requires highly skilled workers, often using high-quality materials. This approach results in more expensive products, such as a custom-made wedding dress.
• Batch Production: In batch production, a large quantity of a product is manufactured in one go, known as a production run. The product is uniform for all customers and is made in advance for immediate availability. It employs less skilled labour and machinery, benefiting from economies of scale with cheaper materials. Examples include books and newspapers.
• Mass Production: This method involves the continuous manufacturing of products that are always in demand. Products are identical, made in advance, and ready for purchase. It utilises specialised machinery and unskilled labour on assembly lines, achieving significant economies of scale for low-cost production. An example is the production of chocolate bars.

Consequences of switching from Job to Batch/Mass Production

• Investment Required: Significant capital investment is needed for automation, which can lead to cost savings through reduced need for skilled labour.
• Loss of USP (Unique Selling Proposition): Customisation and uniqueness may be lost, potentially affecting sales and customer loyalty due to less personalised products.
• Effective Stock Control: Businesses need to manage increased stock levels, requiring more storage and risk of stock becoming obsolete.
• Reduced Prices: Premium pricing strategies may need adjustment, leading to lower selling prices to remain competitive.
• Lower Profit Margins: Higher sales volume may not compensate for reduced profit margins per item, impacting overall profitability.