Production Processes
Business: Edexcel IGCSE, topic 5.2.1
Business Operations
Business operations produce a business’ goods or services. To maximise profit, businesses need to operate so that they produce goods and services to meet a customers’ needs and wants. This means producing at the lowest possible cost for the quality that customers want. The 3 types of production you need to know are:
Job production
- Items are made individually.
Flow production
- An assembly line produces standardised products.
Batch production
- Batch production is when items are made in groups.
Business Operations - Job Production
In job production, items are made individually. The second item is not started until the first item is finished.
Needs highly skilled labour
- Job production needs plenty of highly skilled workers (labour).
- This means that it is often an expensive method of production because highly skilled workers tend to be paid more.
High quality or customised items
- Job production is most appropriate for businesses that create high quality items and businesses that make customised products that meet a customer’s exact specification (design).
Niches
- Job production is also good for smaller markets or niches (small sections of a market).
- This is because job production is very individual and isn’t meant to cater to a huge amount of customers.
- Designer dresses, wedding cakes and handmade furniture are all examples of products built using job production.
Test yourself on Production Processes
"An assembly line produces standardised products". Which type of production does this describe?
Which type of production is being used when items are produced individually?
Why is job production an expensive method of production?
Which of the following items is least likely to be made using job production?