Production Methods (SQA National 5 Business Management): Revision Note
Exam code: X810 75
Introduction to methods of production
Businesses can organise their production processes in a variety of ways
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
Examples of job production
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 |
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Job production can add significant levels of added value and can therefore be very profitable
Specialised products made by skilled craftspeople can command high prices because they are unique and can be made to meet customer needs very precisely
This advantage could be lost if items were made on a larger scale
Evaluating the use of job production
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Batch production
Batch production is 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
Goods made using batch production
Batch production strikes a balance between customisation and cost-effectiveness
This makes it a suitable production method for industries that deal with diverse product ranges and varying customer needs
Evaluating the use of batch production
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Flow production
Flow production involves the manufacture of a product 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
Each workstation performs 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
An olive oil production line
This method is commonly used in industries that produce high volumes of standardised products, such as vehicles and consumer electronics
Evaluating the use of flow production
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Case Study
Sweet Style Shirts is a small, fast-growing clothing business that designs and sells printed T-shirts. The business has started receiving both individual custom orders and larger bulk orders from local retailers. Its owner is trying to decide whether to use job production, batch production or flow production to meet increasing demand
Key considerations
SweetStyle offers custom T-shirts for individuals, including names, colours or special designs
The business has received large repeat orders from shops that want popular designs in multiple sizes
The owner has limited capital, so cannot invest in machines right now
A small team of workers has some experience in T-shirt printing, but not all are highly skilled
Orders sometimes arrive at short notice, so the production method must be reasonably flexible
Recommendation
SweetStyle should use batch production, as it offers a good balance between customisation, efficiency and cost
Batch production allows the business to switch between different designs, which is helpful for handling both custom orders and bulk orders
It is more cost-effective than job production for medium-sized orders, helping reduce unit costs
SweetStyle can still offer some product variety, but without needing the high investment that flow production requires
The business can train staff to work in small teams, printing one batch at a time, which suits their current skill level
Examiner Tips and Tricks
Many students forget to link the method to the business type. Custom products use job, medium demand suits batch, and mass production uses flow.
Match the method to the market to show strong application and earn higher marks.
Labour-intensive and capital-intensive production
Labour-intensive production occurs when manufacturing relies more heavily on human workers than machines
Labour-intensive means that the proportion of labour costs are higher than the other factors of production, including machinery
Evaluating the use of labour-intensive production
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Capital-intensive production occurs when manufacturing relies more heavily on machinery, equipment and technology than human labour
Capital-intensive means that the proportion of machinery costs are higher than any of the other factors of production, including labour
Evaluating the use of capital-intensive production
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