Job & Batch Production: Impact and Considerations

• Different production types impact workers, production costs, output nature and quality, resource use, and the production environment.
• Each production method has its advantages and disadvantages.

Job Production

• Output quality is generally high due to skilled craft workers.
• Workers tend to be motivated by varied tasks and involvement in the entire job.
• Products can be custom-made, suiting customers who value uniqueness and are willing to pay more.
• Production can be slower with longer lead times compared to machine-based methods.
• It is often more expensive due to higher wages for skilled workers and the need for specialized tools.

Batch Production

• Unit costs are typically lower due to higher output, worker specialization, and machinery use.
• Production is flexible, accommodating orders with varying specifications.
• Planning and coordination can be challenging, especially when operations have unequal durations.
• Work may be less engaging for workers due to specialization.
• Small batches can lead to high unit costs.
• More capital can be tied up in work-in-progress.

Flow Production

• Flow production drastically reduces unit costs.
• Output is rapid, and production speed can be adjusted based on demand.
• Modern technology enables flexible production, allowing varied product specifications on the same line.
• Initial setup costs can be very high.
• Employee motivation may be low due to repetitive tasks.
• Products tend to be standardized.
• Production halts due to breakdowns can be costly for the business.

Job production uses skilled labor for custom, high-quality goods, but it's slower and pricier. Batch production lowers unit costs via specialization and machinery, offering flexibility but complex planning. Each method affects workers, costs, output, and resource use differently.