Business operations

Job Production

Job Production

Job production is a method of production used for smaller businesses who focus on making products that meets a customers specific needs

An advantage of job production is that it allows the business to make the prices higher for the product due to personalization, it also is a the best method when making a product because a replica cannot be made which matches the product

A disadvantage of job production is that each product is different and due to theproduction process being slow it results in lower profits

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Flow Production

Flow Production

Flow production is when the product being manufactured is continuously moving through different stages until the product is finished

An advantage is that it allows employees to be specialized in their area of work which also means they have to focus on a limited amount of tasks, this lowers the cost of training staff because they dont have to learn as much

A disadvantage is that there is a high possibility that an employee could make a mistake at their manufacturing stage which would result in a high cost of the product being improved, it is extremely hard to make even minor changes to the product without the costs being high

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Just In Time Stock Control

Just In Time

just in time is a method of stock control, it means that a business only holds as little stock as possible and they order stock just in time for it to be used. It limits waste and using this typeof stock control means you would only produce a product if an order has been made. This means suppliers must respond to the business very quickly without any complications

An advantage is that the buisness does not need as much space to store stock, it also limits the stockholding costs as minimal stock is being held

A disadvantage is that the business is less likely to recieve bulk discount and they would have to pay higher transportation costs for more frequent deliveries,the business would also be at risk if they had problems with the suppliers


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Just In Case Stock Control

Just In Case

Just In Case stock control is where a business holds enough stock for any increase in producton or sales

An advantage is that they can buy stock in bulk which means they would get discount and would have to pay lower transportation costs due to less frequent deliveries,there would also be a lower risk to the business if there was a problem with the suppliers

A disadvantage is that they would be holding stock that will go out of date and will therefore need its price lowering to sell,there is also a dramatic increase in waste. The business would also have to pay higher stockholding costs because they are only holding stock incase of a sales increase or supplier problems

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Lean Production

Lean Production

lean production is a method of production that aims to minimise waste which will reduce costs

An example of waste is if stock went out of its sell by date, faulty stock also has to be remade however any stock that has to be held in a warehouse costs money

For lean production to work the manager of the business must make sure the relationship between employees is fairly strong so that the production process is not stopped

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