Business SL

Advantages and Disadvantages of Methods of Productions (Job/Batch/Mass/Cellular) With Examples

Type Example Advantage Disadvantage
Job (customized) production Custom made medals that have different designs, names, colors, size, etc. ·         Clients get exactly what they ordered

·         Flexible

·         Motivate skilled workers

·         High mark-up

·         Expensive

·         Requires skilled workers

·         Labour intensive

·         Time consuming (consultations)

·         Has a chance of failure

Batch production iPhones that have different storage sizes (16GB, 64GB etc.) ·         Benefited by economies of scale

·         Captures more market share

·         Can be used to trial products

·         Deal with unexpected orders

·         Experience down time (machines may need to be calibrated)

·         Hold large stocks of work

·         Batch size depends on machinery capacity

Mass production iPhone chargers are exactly the same (standard design) for all the current generation of devices. ·         Needs little maintenance

·         Able to cater large orders

·         Benefits from larger economies of scale

·         Automated process means lower labor needs & costs

·         Can response to increase in orders quickly (process set up already)

·         High set-up costs

·         Breakdowns costs the business a lot (also causes assembly to stop)

·         Depends on steady demand from market

·         Inflexible system

·         Process can be tedious for workers

Cellular production ·         Increased worker commitment and motivation

·         Job rotation within cells

·         Increased productivity

·         Improves quality

·         Reduce cost of production

·         Expensive and time consuming to train workers

·         Workers need to be flexible

 

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