Job Production - Customising an individual product from start to finish, tailor made to meet the specific requirements of the client. Every job is specialised and different from others, with each job having its own operations, being worked on separately from others.
Quality - Highly skilled and specialised labour is employed for job production services.
Flexibility - Each product’s design and specifications can be altered according to the customer’s requests.
Uniqueness - Business will be able to charge a premium for customised products.
Long working capital cycle - The production process is generally time consuming due to the varying and specific requirements of customers, as well as the high quality standards to be upheld. Depending on the terms of payment agreed, such as whether payment will be made before or after production is completed, the business may be vulnerable to rising costs of production without sufficient cash inflow
Few economies of scale - A specialised business working on custom orders may face random variations in demand and sales; the irregularity of orders and inability to scale operations will disallow the business from potential economies of scale, such as purchasing economies of scale.
Batch Production - The simultaneous production of a limited number of identical products. Work on each batch is fully completed before production continues to another batch using the same resources and equipment.
Economies of Scale - Technical economies of scale are enjoyed as there is a high capacity utilisation of machinery to produce large quantities in each batch. Raw materials can also be purchased in bulk to support the large scale of operations, allowing the firm to enjoy purchasing economies of scale.
Reduced Risk - If a flaw is found in the output of a batch, only the items in the batch will be compromised, and the problem can be identified and fixed before further production.
Storage - Batch production will result in large numbers of stock, leading to greater storage costs.
Repetition - A monotonous workflow of a repeated set of instructions for every batch will cause repetitive work that does not motivate workers, increasing the likelihood of slack and level of turnover.
Mass Production - Manufacturing of large quantities of standardised products, often using automation technology. The emphasis in mass production is on keeping manufacturing costs low by producing uniform products using repetitive and standardised processes.
Flow Production - Continuous production process of manufacturing identical and standardised products on an assembly line. Large quantities of the product are constantly produced to maximise the capacity utilisation of equipment.
Economies of Scale - High capacity utilisation of machinery to support the large scale production will spread fixed production costs over a larger output, lowering the unit production costs. Raw materials can also be purchased in bulk to support the large scale of operations, allowing the firm to enjoy purchasing economies of scale.
Capital Intensive - Flow production uses a high proportion of machinery in relation to workers. The heavy reliance on machinery and automation will reduce the need for unskilled workers and thereby reduce labour costs.
Inflexibility - If a product is found to be below quality standards, the business will have to scrap a large amount of output and halt production until the problem is identified and fixed.
Repetition - A monotonous workflow of a repeated set of instructions will cause repetitive work that does not motivate workers, increasing the likelihood of slack and level of turnover.
Cellular Manufacturing - Production process is split into a number of self-contained units, which are completed by teams of employees that are responsible for completing that part of the production process. Once a team, or cell, completes their unit of work, it is then passed on to the next cell in the production process.
High Quality - Empowerment of every cell will hold employees accountable for the completion of their unit of the production process. This responsibility motivates the cell to take ownership over their work and produce higher quality output.
Flexibility - Employees in cellular manufacturing tend to be multi-skilled as a result of job rotation with the different responsibilities held by their cells on every product. This flexibility allows the business to adapt quicker to changes in the business environment.
Conflicting Needs - Cells may require the same machinery and equipment as other cells. At the same time, other equipment may not be used at all depending on the progress of each cell, lowering the capacity utilisation and hence efficiency of the organisation.