Business English _Ms.
Thao
An Introduction to Production Methods
Production is the transformation of resources (e.g. raw materials components and
processes) into finished goods or services
Goods are physical products, such as bicycles and T-shirts
Services are non-physical items such as hairdressing, tourism and manicures
1. Job Production = one off production
Job production is where products are made to meet the specific requirements of individual
customers
Each item is produced separately (a job) and the production process is tailored to the unique
specifications of the customer's order
The key characteristics of job production include
- Customisation: Each product is customised according to the customer's specific
requirements. This allows for personalised goods or services to be created
- Low volume: Job production is typically used for unique or specialised products that
are not produced in large quantities
- Variability: since each product is made to order, there can be significant variation in
the production process and materials used
- Skilled labour: Job production often requires skilled labour such as craftsmen or
technicians. The manufacturing process may involve intricate tasks or specialised
techniques
- Longer lead time: Due to the customisation and individual production approach job
production usually has longer lead times compared to other production methods The
time required to fulfil each order can vary depending on its complexity and the
availability of resources.
1
Business English _Ms. Thao
2
Business English _Ms. Thao
2. Batch Production
Batch production occurs when products are produced in groups or batches
o A certain quantity of products is produced together before moving on to the
next batch
o Each batch goes through the entire production process, from raw materials to
the finished product, before the next batch begins
o Batches are usually of a standardised size and composition and follow a
certain sequence of operations
Batch production strikes a balance between customisation and cost-effectiveness,
making it a suitable production method for industries that deal with diverse product
ranges and varying customer needs
3
Business English _Ms. Thao
3. Mass/Flow Production
Flow production occurs when a product is produced in a continuous sequence of
operations on a production line
It involves the movement of materials or components through a series of workstations
or machines with each workstation performing a specific task or operation
o As a product moves along the production line it undergoes a series of
operations, such as assembly, testing, packaging or quality control until it is
completed
This method is commonly used in industries that produce high volumes of
standardised products such as automobiles and consumer electronics
The key characteristics of flow production include:
o Division of labour
Different tasks are allocated to different workstations or machines,
allowing workers to specialise in a specific task
o Standardisation
The manufacture of identical products helps to ensure consistency and
a smooth flow of production
o Continuous movement
The product moves continuously from one workstation to another,
minimising idle time and maximising productivity
4
Business English _Ms. Thao
o High volume
Flow production is suitable for high-volume manufacturing as it
enables the efficient production of large quantities of identical or
similar products
o Automation
Flow production often involves the use of machinery and automated
equipment to perform repetitive tasks quickly and accurately
4. Just-in-time (JIT) production
Just-in-time (JIT) production, sometimes called lean manufacturing or lean production, turns
traditional manufacturing thinking on its head.
Rather than producing goods and supplying customers from stock, JIT processes focus on
producing exactly the amount you need at exactly the time your customers need it.
Just-in-time advantages and disadvantages
The main advantages of JIT are that it can improve production efficiency and
competitiveness.
5
Business English _Ms. Thao
preventing over-production
minimising waiting times and transport costs
saving resources by streamlining your production systems
reducing the capital you have tied up in stock
dispensing with the need for inventory operations
decreasing product defects
Despite the many advantages, there are some possible disadvantages of the just-in-time
system. For example, JIT procedures can require a major overhaul of your business systems -
they may be difficult and expensive to introduce.
The disadvantages of JIT inventory systems involve potential disruptions in the supply chain.
If a raw-materials supplier has a breakdown and cannot deliver the goods promptly, this could
conceivably stall the entire production line. A sudden unexpected order for goods may delay
the delivery of finished products to end clients.
Case study:
JIT in Action A new phenomenon called ‘Apparel on Demand’ is slowly making its presence
felt. It is an extension of JIT linking retailers and manufacturers for a just-in-time
responsiveness. ZEN Clothing Inc., promoted by a young management graduate has recently
ventured into the business of making reasonably priced custom jeans for women. It has
partnered with many stores selling women garments. In the stores, women are electronically
measured and information like colour, fabric, style, etc., are recorded. The information
reaches the ZEN manufacturing facility at Ahmedabad almost immediately through a state-of-
the-art information system. ZEN guarantees delivery of the custom jeans within 10 days. With
the growing acceptance of jeans among the women in India, specially in the urban areas, the
market for women’s jeans is growing at a fast pace. ZEN with its unique business model
hopes to garner a significant share of this market. The promoter of ZEN along with her top
executives is confident that their concept of JIT jeans would work.
QUESTIONS
(a) Do you think ZEN’s strategy would work? Why or why not? What is the importance of
retailers in its business strategy?
(b) Will customers wait for 10 days to have the jeans delivered? What can NZEN do to
compete on customer service if delivery takes this much time?
(c) Comment on the necessity of a robust supply chain in the context of ZEN Clothing Inc.
