Production

Producing each product individually

Advantages: 

·         Products are usually high quality

·         Products can be made to meet the needs of individual customers

·         Workers often get more satisfaction from working on something until it’s finished

Disadvantages:

·         Costs of production will be high

·         Labour costs may be high because job production often requires skilled labour

Producing one type of product for a while then changing production to another type of product

Advantages:

·         The needs of different customers can be met by making batches of different goods

·         Batches are made to meet specific orders from customers and this may reduce costs because goods may not need storing

·         It may be possible to use specialist machines and to automate production so that costs are saved

Disadvantages:

·         It takes time to switch production from a batch of one product to a different batch as machinery may need to be reset. This can add to the cost of production

·         It may be necessary to keep stocks of materials and components to be able to switch production when required. Holding stocks costs more money

·         The tasks may be repetitive and boring for the workers

A series of automated processes which results in a large quantity of a finished product

Advantages:

·         Large amounts can be made

·         Most processes can be automated to allow production costs to be kept low

·         The process is ideally suited to products that have to be a consistent and very exacting quality

Disadvantages:

·         It is very expensive to set up a process system of production

Producing one product continuously using a production/assembly line

Advantages:

·         Large amounts can be made

·         The costs of production for each unit made are low because the firm benefits from economies of large-scale production

·         Machinery can be used, keeping costs low

·         Workers do small specialised jobs which increases the efficiency of the business

Disadvantages:

·         Goods are mass produced and may not be of good quality

·         It is very expensive to set up a production line

·         Large stocks of materials may have to be kept to keep the production line supplied, keeping materials is expensive

·         Jobs on an assembly line can be repetitive and boring for workers