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2.3.1 Business operations GapFill
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In business, the owners have to make many decisions which can have an impact on the success of the enterprise. One decision which is often made easier by the nature and type of products produced is the process. There are three main types - job, batch and flow - and each of them has advantages and disadvantages.
Job production is useful for goods that are unique, bespoke or a one-off. Often, the product being produced stays still and the staff move around it. For example, a helicopter or a cruise ship will remain while the various skilled staff move around it. Other examples of products made using the job production method are a wedding cake and a tailored suit. They are because they are made to the customers' exact specifications and are one-offs. The advantage of producing goods in this way is that high prices can be charged because of the skill of the staff and the uniqueness of the product. The disadvantage is that as labour is required, there may be high labour costs.
Batch production is more suitable for goods that are made in small before the business switches to making other versions of the product. For example, a garment factory may produce sizes 10 to 20 and a variety of styles of clothes. A bakery may also produce everything from crumpets to seeded bread and will do so in batches. The advantage of this production method is that parts of the production can be semi-automated; for example, mixing the dough. The disadvantages are that there can be time when switching between batches, when the business is not producing anything.
Flow production is sometimes called production and means that goods are produced in a flow on a production line. Cars are made this way on an assembly line. It is called this as the workers assemble the cars from various parts as the cars move round the factory. Another example of this is chocolate, which is made in a continuous flow. An obvious advantage of flow production is that almost all of the production process can be speeded up through automation. The disadvantage of this method is that anyone working on the production line may have a very repetitive job, which can lead to low levels.