Types of Production Methods (DP IB Business Management): Revision Note
An Introduction to Production Methods
Production is the transformation of resources (e.g. raw materials components and processes) into finished goods or services
Goods are physical products, such as bicycles and T-shirts
Services are non-physical items such as hairdressing, tourism and manicures
Businesses can organise their production processes in a variety of ways
Diagram: methods of production

The method of production used by a business will depend upon a number of factors
The level of output required to be produced
The nature of the product
Whether the product is standardised or customised
The level of automation used in production
Job Production
Job production is where products are made to meet the specific requirements of individual customers
Each item is produced separately (a job) and the production process is tailored to the unique specifications of the customer's order
The key characteristics of job production include
Customisation
Each product is customised according to the customer's specific requirements
This allows for personalised goods or services to be created
Low volume
Job production is typically used for unique or specialised products that are not produced in large quantities
Variability
Since each product is made to order, there can be significant variation in the production process and materials used
Skilled labour
Job production often requires skilled labour such as craftsmen or technicians
The manufacturing process may involve intricate tasks or specialised techniques
Longer lead time
Due to the customisation and individual production approach job production usually has longer lead times compared to other production methods
The time required to fulfil each order can vary depending on its complexity and the availability of resources
Evaluation of Job Production
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Examples of Job Production
Furniture made to order, where customers can choose the design, dimensions, materials and finishes | Tailored clothing, such as suits or wedding dresses, where each garment is made to meet the preferences of the individual customer | High-end jewellery pieces, especially those with unique designs or personalised engravings |
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Batch Production
Batch production occurs when products are produced in groups or batches
A certain quantity of products is produced together before moving on to the next batch
Each batch goes through the entire production process, from raw materials to the finished product, before the next batch begins
Batches are usually of a standardised size and composition and follow a certain sequence of operations
Diagram: examples of batch-produced goods

Batch production strikes a balance between customisation and cost-effectiveness, making it a suitable production method for industries that deal with diverse product ranges and varying customer needs
Evaluation of Batch Production
Advantages | Disadvantages |
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Mass/Flow Production
Flow production occurs when a product is produced in a continuous sequence of operations on a production line
It involves the movement of materials or components through a series of workstations or machines with each workstation performing a specific task or operation
As a product moves along the production line it undergoes a series of operations, such as assembly, testing, packaging or quality control until it is completed
This method is commonly used in industries that produce high volumes of standardised products such as automobiles and consumer electronics
The key characteristics of flow production include:
Division of labour
Different tasks are allocated to different workstations or machines, allowing workers to specialise in a specific task
Standardisation
The manufacture of identical products helps to ensure consistency and a smooth flow of production
Continuous movement
The product moves continuously from one workstation to another, minimising idle time and maximising productivity
High volume
Flow production is suitable for high-volume manufacturing as it enables the efficient production of large quantities of identical or similar products
Automation
Flow production often involves the use of machinery and automated equipment to perform repetitive tasks quickly and accurately
Evaluation of Flow Production
Advantages | Disadvantages |
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Examiner Tips and Tricks
Carefully consider the needs of the customers to which a business sells when recommending a suitable method of production. Where the selling price is a key driver of consumer demand, flow production (where unit costs are minimised) is likely to be very suitable. Where demand is driven by quality, or where customisation is required, job or batch production are likely to be better choices.
Mass Customisation
Mass production is usually achieved through flow production and involves the manufacture of large quantities of standardised products
This results in low costs per unit compared to other methods of production
Customisation is usually associated with job production or small-scale batch production
It allows customers to design products from scratch
Mass customisation seeks to bridge this gap
It offers flexibility with a range of customisable options within a standardised production process
It benefits from the low unit costs typically associated with flow production
It uses technology, such as computer-aided design (CAD), flexible manufacturing systems and data analytics to efficiently accommodate customer preferences
Diagram: mass customisation

The process of mass customisation typically involves three key elements
Elements of Mass Customisation at Audi
Stage | Explanation | Example |
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1. Choice |
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2. Customisation |
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3. Production |
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Mass customisation offers several advantages for both businesses and customers
Customers can obtain products that match their unique preferences and requirements and are likely to be highly satisfied which leads to positive feedback and loyalty
Businesses can adapt to changing market demands effectively by offering a wide range of product variations without the expense of full customisation
By utilising standardised components and processes mass customisation allows businesses to achieve economies of scale, reduce stock costs and improve overall production efficiency
Mass customisation can differentiate a company from competitors, attract new customers and create a perception of high value and innovation
However, mass customisation usually requires heavy capital investment in technology and variable costs tend to be higher than for standardised, mass produced items
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