Methods of Production (Cambridge (CIE) IGCSE Business): Revision Note

Furniture made to order

Where customers can choose the design, dimensions, materials and finishes

Tailored clothing

Such as wedding suits, where each garment is made to fit the specific preferences of the individual customer

High-end jewellery

Especially those with unique designs or personalised engravings

• Products can be customised to match each customer's needs

• The process is flexible and can adapt to changes in demand

• High attention to detail often leads to better quality and higher prices

• Customers are often involved in the design, giving them a personal experience

• A personalised service can build strong customer loyalty

• Job production is more expensive due to personalised work

• Lead times are usually longer, which may not suit customers needing fast delivery

• It can be harder to manage and needs careful planning

• Close communication with the customer is required throughout

• Small output means the business cannot benefit from economies of scale

• Businesses can switch between batches to meet different customer demands

• It is more cost-effective than flow production for smaller quantities

• Some purchasing economies can be gained by buying materials in larger amounts than in job production

• Defects can be spotted and corrected within a batch before moving on

• Setting up equipment for each batch takes time and may cause delays

• Batches often create extra inventory, which needs storage and careful control

• It is less flexible than flow production when dealing with changes in demand

• Frequent stopping and starting can wear out machines and increase maintenance needs

• Continuous production avoids frequent machine start-ups, saving energy and reducing waste

• Unit costs are low due to automation and the use of unskilled labour

• Costs are also spread across high output, making each unit cheaper to produce

• Defects can often be detected and fixed early in the process

• Fast production leads to short lead times, helping businesses meet customer demand quickly

• Setting up a flow production line requires a large capital investment

• The system depends on reliable machines, as any breakdown can stop the entire line

• If a fault is found, the whole line may need to stop, causing delays

• The process relies on a constant supply of raw materials or components

• Supply chain problems can seriously disrupt production

• If the product is highly customised or made to customer specifications, job production is often the best choice

• Standardised products made in large quantities are better suited to flow production

• Businesses with high and steady demand are more likely to use batch or flow production to produce goods efficiently

• If demand is low or changes often, job or batch production may be more suitable

• Flow production requires expensive machinery and technology, so only businesses with enough capital can afford it

• Smaller firms may choose job or batch production due to lower setup costs

• Job production often requires skilled workers to produce high-quality, custom items

• If skilled labour is limited or too costly, a business may prefer batch or flow production, which relies more on machines or unskilled workers