Production processes: job, batch and flow production, the use of technology in production, the impact on productivity and efficiency, and how a business chooses a method of production.

What this topic is asking

OCR J204 topic 4.1 wants you to know the three main methods of production (job, batch and flow), how technology is used in production, the effect on productivity and efficiency, and how a business chooses a method. This opens the Operations topic on Paper 2. Remember Paper 2 is synoptic, so production links back to marketing (the product) and finance (costs).

Job production

Examples: a tailored suit, a wedding cake, a custom-built website, a one-off engineering part. Job production gives high quality and flexibility and can charge a premium, but it is slow, labour-intensive and costly per unit, so it suits low-volume, bespoke work.

Batch production

Examples: a bakery making a batch of one bread type then a batch of another, a clothing firm making a run of one size. Batch production gives more variety than flow and lower unit costs than job, but there is downtime when switching between batches and work-in-progress to store. It suits medium volumes of varied products.

Flow production

Examples: bottled drinks, cars, packaged food. Flow production gives very low unit costs (through economies of scale), high output and consistency, but it is inflexible (hard to change the product), costly to set up, and a breakdown stops the whole line. It suits high-volume, standardised products.

The use of technology in production

The drawbacks are the high cost of buying and maintaining technology, the training needed, the risk of breakdowns, and the possibility of replacing jobs, which affects employees (a stakeholder issue). OCR expects a balanced view.

Productivity and efficiency

Raising productivity (through technology, training, motivation or a better method) cuts unit costs and improves competitiveness. Efficiency is about producing with the least waste of time, materials and money.

How a business chooses a method

The choice depends on the product (bespoke or standardised), the volume of demand, the resources available, and the market (premium customers may want job production; a mass market needs flow). A business may also combine methods, for example flow production for a standard line and job production for special orders.

Try this

Q1. State one product suited to flow production. [1 mark]

• Cue. Bottled drinks, cars, packaged food, or any high-volume identical product.

Q2. A team of $5$ workers produces $1{,}500$ units. Calculate the labour productivity per worker. [2 marks]

• Cue. $\frac{1{,}500}{5} = 300$ units per worker.