Topic 4.1 - Methods of Production

• Business
• Secondary Education

Methods of Production

IGCSE Business Studies - Topic 4.1 Operations Management

While we're waiting for students to arrive: 

• Try to remember the 7 wastes businesses experience.

In today's lesson

You will be able to: 

• understand 3 different methods of production
• their advantages and disadvantages
• identify which types of businesses would benefit from each method

First, let's review.

Complete the quiz reviewing what you researched last lesson.

Which of the following is one of the seven wastes businesses might experience?

1. Timely delivery
2. Overprocessing
3. Underproduction
4. Efficient transportation

What is the term for holding too much stock or inventory that is not immediately needed?

1. Unnecessary production
2. Unnecessary inventory
3. Quality control
4. Backup

Which waste refers to the unnecessary movement of people or equipment?

1. Effective communication
2. Motion
3. Productivity improvement
4. Cost reduction

What is the waste called when products are delayed for the next production stage?

1. Sustainable production
2. Waiting
3. Swift delivery
4. Optimal pricing

Which waste involves producing more than what is needed or demanded by customers?

1. Defects
2. Lean production
3. Overprocessing
4. Overproduction

What is lean production?

1. A production method that focuses on producing large amounts at once.
2. A production method that focuses on quality control and inspection.
3. A production method that reduces waste and maximises efficiency.
4. A production method that uses traditional manufacturing techniques.

What is cell production?

1. A method where workers specialise in a specific task on the production line.
2. A method where production is located in a single location.
3. A method where products are produced in large batches and stored in inventory.
4. A method where small teams of workers complete an entire product.

What is just-in-time production?

1. A method where production is scheduled in advance without considering customer demand.
2. A method where workers are trained to perform multiple tasks on the production line.
3. A method where products are produced and stored in inventory before customer demand.
4. A method where materials arrive at the production line exactly when they are needed.

What is Kaizen?

1. A production method that minimises the need for inventory storage.
2. A production method that emphasises reducing defects and errors.
3. A production method that focuses on standardising work processes.
4. A continuous improvement approach that involves all employees sharing their ideas.

Review:
How can production methods increase efficiency? Give one example from last lesson.

Methods of production

Today we'll learn about 3 more types of production.

- Flow production

- Batch production

- Job production

Flow Production

Flow production is a method where products are continuously manufactured in large quantities. It involves a continuous flow of production with little or no interruption.

Businesses Suitable for Flow Production

Flow production is suitable for: 

• high-volume production 
• standardised products,  large-scale manufacturers of consumer goods.

Advantages of Flow Production

Advantages of flow production include: 

• economies of scale, 
• high productivity, 
• reduced unit costs, and 
• efficient use of machinery and labor.

Disadvantages of Flow Production

Disadvantages of flow production include: 

• reduced flexibility, 
• high initial setup costs, and 
• potential delays in the production line.

Job Production

Job production is a method where products are made to meet specific customer requirements. Each product is individually crafted or customised.

Businesses Suitable for Job Production

Job production is suitable for businesses that offer highly customised or unique products, such as bespoke furniture makers or wedding dress designers.

Advantages of Job Production

Advantages of job production include: 

• high level of customisation,
• potential for premium pricing, and 
• ability to meet individual customer needs effectively.

Disadvantages of Job Production

Disadvantages of job production include: 

• higher costs per unit, 
• longer production times,
• the need for skilled labour and more complex production planning.

Batch Production

Batch production involves producing goods in groups or batches. Each batch goes through the whole production process before the next batch is started. This is often done with clothes, or bread.

Businesses Suitable for Batch Production

Batch production is suitable for businesses with varying demand levels and a need for some customisation, such as bakery shops or clothing manufacturers.

Advantages of Batch Production

Advantages of batch production include: 

• flexibility to meet varying demands, 
• lower setup costs compared to flow production, and 
• the ability to customise products within each batch.

Disadvantages of Batch Production

Disadvantages of batch production include: 

• higher unit costs compared to flow production, 
• potential delays between batches, and 
• the need for storage space for partially completed products.

Summary

Flow production involves continuous manufacturing, batch production produces goods in groups, and job production is customer-specific.

Read through the case study on p.220

Answer the questions on p.221

Homework

Complete question (b) on p.223

Write down 3 things you learned in this lesson.

Have students enter three things they learned in this lesson. With this they can indicate their own learning efficiency of this lesson.

Write down 2 things you want to know more about.

Here, students enter two things they would like to know more about. This not only increases involvement, but also gives them more ownership.

Ask 1 question about something you haven't quite understood yet.

The students indicate here (in question form) with which part of the material they still have difficulty. For the teacher, this not only provides insight into the extent to which the students understand/master the material, but also a good starting point for the next lesson.