METHODS OF PRODUCTIONS
OPERATIONS:
Is the business function that organises, produces and delivers the goods and services the goods and services
produced or provided by a business.
PRODUCTION PROCESS:
Involves a business using its resources to produce goods and provide services that customers can buy.
3 TYPES OF PRODUCTIONS:
JOB (E.G: HOUSE EXTENSION)
 One off or bespoke products
 Focus on customer needs and individual
services
 Specialist skilled workforce increases cost
 High profit margins
 Longer production process
Productivity: is output per worker, it measures how much each worker produces over a period of time.
Bespoke: made for a particular customer or user.
1) JOB
ADVANTAGES:
 High profit margins for bespoke
products
 Employees may gain enjoyment from
using their specialist skills
 Employees may gain enjoyment from
using their specialist skills
DIS-ADVANTAGES:
 Highly skilled staff are required,
which increases costs
 Highly skilled staff may not be
available, which can make
BATCH (E.G: WALKERS CRISPS) 3) FLOW (E.G COCA-COLA)
 Larger volume of products than  High volumes and low margin
job production (with high productivity)
 Some flexibility  Standardised production
 Semi-skilled workforce  Low skilled workforce
 Some levels of automation  Highly automated process
 Productivity reduced when  Setting up expensive
switching between batches machinery increases costs
2) BATCH 3) FLOW
ADVANTAGES: ADVANTAGES:
 Able to make a  Able to make far larger quantities
variety of sizes or
flavours  Consistency in production means
products are identical, which
 Can be partially
means customers know exactly
automated
what they are buying
 Can produce more
 Highly automated process
products than job
production
DIS-ADVANTAGES: DIS-ADVANTAGES:
 As batch  Customers like products that are
production is not tailored to their specific
fully automated, preferences
costs may be
 In competitive markets for similar
training staff very expensive higher than in mass – produced goods, profit
flow production margins can be very low
 Expensive to buy Machinery first