Production Of Goods And Services: The Main Methods Of Production (Copy)
Cheat Sheet: 4.1.2 Main Methods of Production
Job Production
| Feature | Benefits | Limitations | Example |
|---|---|---|---|
| One product made at a time, customised | High quality, meets exact customer needs, high worker motivation | Expensive, slow, skilled labour needed | Tailor-made suits, luxury yachts |
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Batch Production
| Feature | Benefits | Limitations | Example |
|---|---|---|---|
| Products made in groups (batches) | Some economies of scale, flexibility, variety | Machines may be idle, storage costs | Bakery producing 200 cakes at once |
Flow Production (Mass Production)
| Feature | Benefits | Limitations | Example |
|---|---|---|---|
| Continuous production on an assembly line | High output, low unit cost, economies of scale | High setup cost, less flexibility, boring for workers | Car manufacturing (Toyota, Ford) |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course
Choosing Production Method
| Situation | Best Method | Justification |
|---|---|---|
| Custom wedding dress | Job | Personalised, high quality |
| Bakery producing cakes for local sale | Batch | Mix of efficiency and variety |
| Smartphone factory | Flow | Mass production lowers cost per unit |
Quick Revision Bullets
- Job = customised, high quality, expensive
- Batch = groups, some economies, moderate flexibility
- Flow = continuous, high volume, low cost, less flexibility
- Method choice depends on product type, demand level, cost factors
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course