5.2.1 - Production methods and productivity

Job production

Job production makes one distinct product or completes one customer order at a time.

In an illustrative Moroccan workshop, a craftsperson makes a dining table to fit a customer's unusually shaped room. Measurements, timber choice and finishing can be adapted to that order. Job production also applies to services, such as designing a particular client's website, and to large projects, such as constructing a unique building. A job can involve many workers and machines; it does not necessarily mean one person making something by hand.

Customisation can attract customers willing to pay a higher price for a suitable or distinctive product. Skilled workers may find varied tasks satisfying, and faults can be checked during an individual job. However, the business cannot spread preparation and design time across many identical items. Skilled labour and specialised materials may raise cost per item, and a customer may wait longer for completion.

Choosing job production involves a trade-off. A tailor accepting complex individual designs may earn a higher price, but needs enough customers willing to pay for the time involved. Switching to a standard product could reduce cost yet remove the feature those customers value. The relevant measure is whether the price and demand support the production method, rather than simply whether output is low.

Batch production

Batch production makes a group of identical items before production changes to another group.

An illustrative bakery in Malaysia makes a tray-sized batch of plain rolls, then changes ingredients and settings to make sesame rolls. All items in a particular batch pass through the relevant production stages together. The business can offer several products without making every item as a separate job.

Repeating tasks within a batch can spread preparation time across several units and improve worker or machine efficiency. Equipment can be used for different varieties, giving more flexibility than a dedicated flow line. The bakery can respond to expected demand by changing its batch sizes or flavours.

Between batches, machines may need cleaning or resetting. This changeover creates downtime during which equipment produces no saleable output. Larger batches spread changeover costs across more units but may leave unwanted inventory. Smaller batches respond more closely to changing customer demand but require more frequent changeovers. Unsold fresh food may spoil, so producing the largest possible batch is not necessarily economical.

Batch production suits demand for a repeated product with some variety, such as clothing sizes or different food recipes. It still requires planning: materials, labour and machinery must be available at each stage so part-finished items do not wait unnecessarily. A bottleneck at one stage can delay the entire batch.

Flow production

Flow production moves large quantities of standardised items through an organised sequence of stages.

In an illustrative large Brazilian beverage factory, bottles move through filling, sealing and labelling. Each stage repeatedly performs its task. Flow describes the organisation of work; it does not require a factory to operate twenty-four hours every day.

High-volume repetition can reduce average cost. Specialised equipment and workers complete tasks quickly, and the line's setup cost is spread across many units. Consistent processes can produce consistent quality. These benefits depend on demand being large enough to use the capacity: a costly line operating well below capacity may have high cost per bottle.

Flow production is often less flexible than job or batch production. A major product change may require expensive redesign or a lengthy changeover. A breakdown at a critical stage can interrupt other stages because the line's activities depend on one another. Repetitive work may also reduce motivation unless managers improve task design and working conditions.