Welcome to Production Processes!
In this chapter, we are looking at the "Operations" side of business. If Marketing is about finding customers and People is about looking after staff, Operations is about the "how"—how a business actually makes its products or provides its services.
We are going to explore the three main ways things are made and how cool new technology like robots is changing the game. Don't worry if it sounds technical; we'll break it down using things you see every day, like pizza and trainers!
1. Three Ways to Make Things (Production Processes)
Businesses don't all make things the same way. A local baker making a custom wedding cake works differently than a giant factory making thousands of loaves of bread. The three methods you need to know are Job, Batch, and Flow.
A. Job Production
Job production is when a business makes one unique item at a time, usually to a customer's specific order. Think of it as "bespoke" or "hand-made."
• Examples: A custom-made suit, a wedding cake, a bridge, or a haircut.
• The Good Stuff: The product is high quality and exactly what the customer wants. Staff often find it more interesting because every job is different.
• The Tough Stuff: It is very slow and expensive. You need highly skilled workers who usually cost more to hire.
B. Batch Production
Batch production is when a business makes a group (or "batch") of identical products, then stops to change the equipment before making a different group.
• Examples: A bakery making 20 blueberry muffins, then cleaning the trays to make 20 chocolate muffins. Or a clothing brand making 50 "Small" t-shirts before switching to "Medium."
• The Good Stuff: It’s faster than job production and allows for some variety (different flavors or sizes).
• The Tough Stuff: There is "downtime" when machines are stopped and cleaned between batches. This costs money and time.
C. Flow Production
Flow production (also called mass production) is a continuous process where identical items move along an assembly line. The machines never really stop!
• Examples: Coca-Cola bottles, bars of chocolate, or cars.
• The Good Stuff: It is incredibly fast. Because so many items are made, the cost of making just one (the unit cost) becomes very low.
• The Tough Stuff: The machines and factory are very expensive to set up. If one machine breaks, the whole line stops. Also, every product is exactly the same—no variety!
Quick Review Table:
Job: 1 unique item | High skill | High cost
Batch: A group of items | Medium skill | Medium cost
Flow: Constant line of identical items | Low skill (mostly machines) | Low cost per item
Memory Aid: "Just Be Fast"
Job = Just one.
Batch = Bunch of them.
Flow = Fast and forever.
Summary: Businesses choose their process based on what they sell. A Ferrari (Job) needs a different process than a tin of beans (Flow)!
2. Technology in Production
Technology has changed how we make things. It makes production faster and more accurate, but it also changes the way people work.
Automation
Automation is when a process is controlled by machines or computers with very little human help. Instead of a person putting a lid on a jar, a machine does it automatically.
• Impact: It’s much faster and machines don't get tired or bored. However, it can be very expensive to buy the machines, and workers might lose their jobs.
Computers
Computers are the "brains" of the factory. They are used in two main ways:
1. Designing: Using software to draw and test products before they are made (this is often called CAD).
2. Managing: Using computers to track how much stock is left or to tell machines exactly what to do.
Robotics
Robotics involves using robots to carry out physical tasks. They are especially useful for jobs that are repetitive, dangerous, or require extreme precision.
• Example: In car factories, robots do the heavy lifting and the welding because they can do it exactly the same way every single time without making a mistake.
• Did you know? Some robots are now used in warehouses (like Amazon) to move shelves around so that humans don't have to walk miles every day!
Common Mistake to Avoid: Don't assume technology is always better. For a small business making "hand-crafted" jewelry, using a robot might actually ruin their brand image because customers want that human touch!
Summary: Technology like automation and robotics makes production faster and more consistent, but it requires a lot of money (investment) to start.
3. The Impact on the Business
Choosing a production process and using technology affects the whole business. Here is how:
1. Costs:
Technology is expensive to buy but saves money in the long run because you pay fewer workers. Flow production has the lowest cost per item, while Job production is the most expensive.
2. Quality:
Robots make fewer mistakes than humans (they don't have "bad Mondays!"). However, a skilled human doing "Job production" can often provide a higher quality, more personalized finish than a machine.
3. Flexibility:
Job production is the most flexible (you can change anything). Flow production is the least flexible (the machines are set up to do one thing only).
Key Takeaway: The "best" production process depends on the Product (Is it unique or mass-produced?) and the Budget (Can we afford robots?).
Quick Review Quiz (Mental Check)
1. Which process would a tailor use for a bespoke wedding suit? (Answer: Job)
2. Which process is used for making thousands of identical cans of soup? (Answer: Flow)
3. What is it called when a machine does a task with no human help? (Answer: Automation)
4. Why might a worker be unhappy about a business buying robots? (Answer: Fear of losing their job)