Batch Production
Business: Cambridge International GCSE (2027 Exams), topic 4.1.4
Batch Production
Batch production is similar to job production, but instead of making singular items, groups of items are made together. A baker making batches of loaves of bread is an example of batch production.
Batch production advantages
- Lower average costs than job production (overheads spread across items).
- More efficient than making single items.
- Allows some product variety (e.g. different flavours, sizes, or designs).
- Suitable for medium demand levels.
Batch production disadvantages
- Machines must be cleaned or reset between batches, which is costly and time-consuming.
- Workers and machinery may be left idle during changes.
- Less flexible than job production for highly customised items.
- Not as efficient as flow production for mass markets.
Lower average costs than job production
- Batch production usually has lower average costs than job production because small quantities are made together.
- This means that overheads like electricity for a baking oven can be shared across more than one unit of output.
Costs of switching production
- When changing production, machines have to be washed down and this can be costly and time consuming.
- For example, when Cadbury makes moulded chocolate bars that contain nuts (e.g. Fruit and Nut), the same machinery has to be washed and prepared to avoid cross-contamination. Otherwise, consumers that have nut allergies may become ill or die.
Example
- Cadbury uses batch production to make different types of chocolate bars, requiring machinery to be washed between products.
Test yourself on Batch Production
Methods of Production
A baker making a wedding cake is an example of what method of production?
Why is batch production more expensive than flow production?