Factors that determine which production method should be used

Labour Intensive

Capital Intensive

4 methods of production

Job production

Batch production

Flow production

Cell production

Factors that help businesses decide which method to use

JOB PRODUCTION ADVANTAGES
- highly specialised/customised goods which means a higher price can be charged
- could mean higher quality as all the focus is on one product at a time

CELL PRODUCTION ADVANTAGES
-cells improve communication
- workers become multi-skilled
-motivation, due to variety of work, team working and more responsibility
- quality improvements as each cell has ‘ownership’ for quality on its area

BATCH PRODUCTION ADVANTAGES
- there is less demand for highly skilled workers, which lowers cost of wages
- equipment can be standardised to a certain extent, which lowers costs

FLOW PRODUCTION ADVANTAGES
- in assembly lines vast orders can be met and large quantities produced
- standardisation of machinery can keep costs low
- automated machinery can operate without breaks