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Production Methods

             The manufacture of the medicine is an example. Items produced are labelled with a batch number and if there is a problem this allows for all the items in a batch to be recalled.
             Advantages of batch production Disadvantages of batch production.
             Unit cost may be lowered If only batches are made then the company may have trouble finding workers prepared to work part time when batches are needed.
             There is a lower chance of the company producing too many of a product and losing money due to the product not being sold. The company will still have to pay rent of premises that are only in use when a batch is being produced.
             • Mass production.
             A large quantity of the same product is made at high speed, and as cheaply as possible. A good example is the manufacturing of television sets. .
             Advantages of mass production Disadvantages of mass production.
             Unit cost low due to large output Due to huge outlay if the product is unsuccessful then the company could go bankrupt.
             Much lower chance of the product being unavailable Huge capital outlay to buy machinery.
             Company will own factory and not have to rent production lines Breakdown in machinery can cause big problems.
             Quality may lapse over time due to continuous production.
             • One-off production.
             This is when products are made to specific orders. All of the components are ordered in specially. This is not very cost effective unless the components are very expensive. An example of this type of production is production of the Mclaren F1 Sports car.
             Advantages of one off production Disadvantages of one off production.
             There will be no components left over Each component will need to be ordered in especially.
             Premise costs will be expensive as there will not be large output. If the product is popular then there will be a waiting list.
             Types of production costs.
             A manufacturing company's production department will need to consider the quality and quantity of a product in relation to cost.

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