In business let’s be honest there are so many things to consider! From hiring the right people to having the right product to selling it in the right place – but what about how they make their products?
Well, some companies opt to use batch production!
Batch production is a production method designed to create groups of similar products. This means that these products will go through the production process together through its various stages.
However, although batches of products may go through the process together, they may be slightly different. Examples of businesses that may use batch production are food shops and car manufacturers.
There are a number of advantages of using batch production. Because groups of similar products are being produced at the same time, it is often possible to use machinery for much of the production process.
Furthermore, employees are able to specialise in one part of the production process, meaning that training costs are reduced, and that with some practice the employee can become more efficient at their job – ideal!
However, as a theme in business, there are always pros and cons to each decision made.
In this case batch production can be very expensive for a business because it is likely to require the company to purchase machinery at a great cost!
It’s also expensive because the company is having to estimate sales numbers which can lead to them over producing a good.
And finally it very very rarely provides customers with a personal service!