SCALE OF PRODUCTION

SCALE OF PRODUCTION

1. Refers to quantity or numbers of a product made depending on the needs of the customers

2. Volume or quantities of products required

3. Types of materials used to make the products

4. Type of product being manufactured

5. ONE OFF PRODUCTION

   • Tailor-made customised designs - creates one single product at a time
   • Application:
     • Prototype & architectural models
     • Engagement ring
     • Tailored suits
     • For commercial vehicles
   • Advantages
     • Made to exact personal specifications
     • High quality materials used
     • Highly skilled crafts person ensures high quality product
   • Disadvantages
     • Expensive final product in comparison to larger scales of production
     • Generally labour intensive
     • Time consuming

6. BATCH PRODUCTION

   • Involves the manufacture of identical products in specified quantities - varies from 10's to 1,000's
   • Application:
     • Commercially printed materials e.g. magazines / newspapers
   • Advantages:
     • Lower unit cost
     • Flexibility in adapting production to another product
     • Fast response to market trends
     • Identical batches of products produced
     • Efficient manufacturing systems can be employed
     • Good economies of scale
   • Disadvantages:
     • Poor production planning resulting in large quantities being stored incurring storage costs
     • Frequent changes in production can cause costly retooling reflected in retail price

7. MASS PRODUCTION

   • Advantages:
     • Specialisation of workforce to specific tasks
     • Rigorous quality control ensures identical goods
     • Excellent economies of scale in bulk buying of materials
     • Increased productions means setup costs quickly recovered
     • Low unit costs
     • Reduced labour costs
   • Disadvantages:
     • Low skilled workforce - low wages, repetitive nature of tasks leading to job disatisfaction
     • Ethical concerns of manufacturing in developing countries (sweatshops)
     • High initial set up costs due very expensive machinery and tooling needs
     • Inflexible - can not respond quickly to market trends
   • Application:
     • Nuts, screws, drinks cans, plastic bottles
   • Makes use of efficient automated manufacturing processes & largely low-skilled workforce