Production and operation management has become an essential part of manufacturing organizations. These organizations always experience pressure in all divisions and units. Pressures are in terms of orders to be completed on due dates, breakdown of machines, absence of employees, lateness on delivery of materials, and industrial actions by employees to improve working conditions. To meet these challengers, firms usually rely on an effective methods of production and operation methods.
A manufacturing organization may use different methods of production such as use job, batch or flow production depending on a number of factors. However, it is important to have a clear distinction between these three methods of production to know where each one is applicable. Whatever methods of production is used, the objective is to produce goods and services which is highly profitable and to use the most effective and efficient method. Considerations should also be made to other aspects like producing quality products and delivering customer satisfaction.
Job production implies the manufacture of individual or unique products in order to meet the individual needs and wants of the consumer. In such a case, the quantity produced is often just one unit, though it is possible to produce in a larger quantity, and there may well be variations that make each unit an individual product. Under job production method each stage of the production process is organized and completed until the unique product is completed; it is only then another product can be started. Over and above, job production is normally undertaken by small manufacturers who specialize in meeting the needs of consumers with highly specific individual requirements so that a small company can compete with larger ones in offering just what consumers demand. Job production is proves an effective technique when being used by furniture restorers.
On the other hand, batch production involves the breaking down of production into various processes. It is vital that all items within a batch must pass through a particular process before the batch can move on to the next process.
Contrary to job and batch production, in flow or mass production we have one unit of output at each point in the assembly line, and it is more focused on commoditization.
Principle Features of Job, Batch and Flow Methods
The principle features of job, batch and flow methods of production can be described with reference to the units of production, degree of capital intensive and degree of variation in production process
1. Units of Production
The number of furniture produced under job production is likely to be very small quantity and in many cases only one unit. However, job production can be repeated at a later date, whereas project production is literally one-off. Under batch production, the number of furniture produced will be greater than job production. The size of each batch is normally determined by the demand for the product. A high demand for products will involve large unit of production and vice-versa. A large volume of products can be produced using flow production leading to economies of scale and in return this allows the firm to earn a higher profit margin. Alternatively, it helps the firm to become more competitive.
2. Degree of Capital Intensive
Job production is more likely to be labor intensive than capital intensive. This could be justified by the fact that production is unique and there is less need for automation. Besides, the low volume of production does not allow the use of expensive machines which could raise the average cost of production. The fact that the quantity of production is larger in batch production, it is necessary to operate more machines, i.e. it is more capital than labor intensive. Additionally, the use of more machines which involves repetitive processes means that there will be a need to employ maintenance staff to keep the machines in good working conditions. Unlike batch production, flow production requires heavy investment in machinery. Therefore, flow production is likely to be capital intensive as opposed to labor intensive.
3. Degree of Variation in Production Process
The fact that job production undertakes the making of customized products, the variation will be enormous. In other words, production is tailor-made to meet the individual requirements of the customer, making the products different form the other ones. There can still be a wide variety in batch production, but the differences must be between the capabilities of the manufacturing processes that are necessary to produce the products. Using the same production processes, the manufacturer is able to meet the customers need by offering different varieties of same product. Although standardized varieties are possible within the limitations of the machinery for instance, furniture are assembled using flow production, but there can be variations of color, sizes and designs, polishing and finishing – all of them are produced within the same assembly line.
To conclude we can say that job, batch and flow are three different techniques which a manufacturer may use with reference to the units of production, degree of capital intensive and degree of variation in production process as have been fully described above. A notion of each production method is important for the firm to decide which method is most applicable, effective and efficient for its organization. The wrong choice of production method can be detrimental to firm.
Compare and Contrast Job, Batch and Flow Methods
To compare and contrast job, batch and flow methods of production, we can analyze them using the given criteria. The idea is that if the product is a unique on-off item, then job production is best suited, unlike if the product requires standardization and mass-production, flow production is the right choice.
1. Ability to Handle Variety in Products/Services
As the product should be tailor-made according to customers’ requirements in job production, so there is higher degree of variety in the products or services. When describing the job of a hairdresser, we find that everyday different people come in his saloon for haircut and other services. Obviously, each person’s requirements will differ from each other in that they will want to have a haircut in their way or style. As such, the hairdresser must have the ability to handle variety in offering such services, and adjust the hair cutting style for every customer. Similarly, the job of a tailor is to sew clothes differently in order to suit every client’s requirements in terms of the fabric, size, color and design. The work of an architect works in same way, i.e. to design every house or building according to the expectations of customers.
There is still room for variety in batch production, provided it is within the firm’s capabilities necessary to manufacture the products. While making use of the same production process, an umbrella manufacturer can produce umbrellas for both men and women simply by varying the sizes, colors and logos. As such, the needs and wants of both groups of customers have been satisfied.
Despite in flow production there is little room for modifications, it is still possible to bring some variations while considering the limitations of machinery and the structure of processed. Mobile phones undergo flow production yet variations can be made in terms of the color, design, casing and screen.
2. Ability to Handle Changing Volumes from Period to Period
Job production offers certain flexibility to handle the changing volumes in production as products are mostly made on orders. It is interesting to point out that each time a new product or service is produced. If we take the case of a solicitor, we find that each client’s situation(s) will be unique. The solicitor will study and deal with each client or case individually, and at the end provide specific advice each person. It is possible to have changing volumes from time to time in terms of the number of clients and complexity of their situation(s). The ability to handle changing volumes from period to period will depend on the competency and experience of the solicitor.
Batch production is used when the volume of production is higher than in job production but lower compared to flow production. For instance, a restaurant may be subject to ever changing volumes of meal preparation from period to period. At peak hours the restaurant should be prepared to cater for the increasing number of customers than normal hours. The restaurant should employ enough servers for taking orders and offer customer care services, and more cooks to prepare a wide variety of dishes. For better management of the changing volumes, the restaurant can adopt shift basis for servers and cooks. Thus, the restaurant can put more staffs to work on peak hours and lesser staffs on normal hours.
Due to the high level of capital-intensity in flow production, businesses need to operate at full or optimum capacity level. We can take the example of flow production from a manufacturing organization. If we consider the company’s production volumes we find that it can produce more goods in December period as compared to other periods in order to prevent the risk of stock-out. This is because the trends show that customers tend to spend more on the company’s product for the year end periods. As a result, the company has to make provision for good quality and quantity of goods in advance to be able to deliver its product on time.
3. Equipment Utilization
All the three methods of production may be using certain equipment but the degree of utilization may vary from one another. Job production is likely to entail less equipment utilization due to the individuality of the product. If the example of a potter is considered, the person can create various shaped vases only with the use of his hands and a potter’s wheel. Conversely, if we apply job production to the manufacturing firm, we find that a wide range of equipment is necessary to fulfill different and changing requests or orders. An example may include the manufacture of a specific machine (like employee time clock machine) for another business to meet a particular specification (such as monitoring the punctuality and attendance of employees).
Batch production entails the utilization of more equipment to perform the repetitive processes. For instance, Kentucky Fried Chicken (KFC) uses different special equipment’s for the preparation of its chicken, chips, sandwiches, salads, potatoes gravy, drinks, desserts and snacks. Similarly, Mc Donald’s and other similar firms make use of different equipment’s in their production processes.
Unlike batch production, flow production also requires enough workstation and even more equipment utilization. The equipment’s need to be running continuously in order to enable high volume production of standardized goods. Products such as Colgate toothpaste, Lux soaps, Kit-Kat, Heinz baked beans require a high proportion of equipment and machinery to sustain mass production. Another illustration could be that if suppose a motorcycle requires around 150 tasks to be performed for its final assembly, then adequate machinery and space should be available to carry out the 150 jobs.
4. Skill Requirements of Workforce
In job production, the workforce requires a higher level of skill in order to be flexible and capable of producing ‘one-offs’. We can take a case from the manufacturing environment, notable that of a car manufacturer. Aston Martin is an example of a very expensive car that is individually produced by qualified engineers for the needs of each customer. Each engine is hand build and carries a plate with the engineers name on it.
The fact that the batch involves the repetition of same process for each batch, the level of skill required of the labor force is not as high as that required for job production. If we consider an engineering company which is involved in manufacturing small steel goods like hinges and lockers, we can find that they may produce batches of around 500 at a one go. They require less or semi-skilled workers where production flow a chain of workers until production line is completed. However, it is obvious that batch production is less flexible than job production as once a batch is in production it cannot easily be changed to produce something else.
When comparing job and batch production with that of flow production, we find that in flow production it is the system that set the pace of work and not the workers. Consequently, it is specialization that decreases the level of skill required for the tasks. In the early 20th century Henry Ford gained lots of appreciation and remembrance for his remarkable contribution to the automobile industry. He revolutionized the auto industry by significantly reducing the time involved in car assembly. His ideas for mass production of cars proved successful with the Ford Model T. He put in place a moving belt in his factory, where workers get a facility of building cars one piece at a time, instead of one car at a time, and this is referred to as “division of labor”. He believed that workers should focus their attention on doing one task very well rather than taking the responsibility for various tasks. Gradually, he also increased the wage and decreased the hours of the workers as he wanted to ensure that he could get enough and the best workers.
5. Materials Management Procedures
The quality and quantity materials to be used in each type of production differ with reference to the nature of the firm, flow of materials, transformation process, and machinery used. Film production can be a form of job production, where there is a high discontinuous flow of materials and components between different stages (scriptwriting, location selection, shooting, choreography, editing, directing and distribution to the audience) due to difference in operation wise work content.
The flow of material in batched production is more complex, hence the quantity of material to be used for different volume of production is different in each type of production. For example, in a company offering printing and photocopy services, the volume of inks and paper to be used depend on customer’s demand. Using a batch production, the company will print and make photocopy of books for a certain period of time and according to the assessed level of demand. Thus, it will have to make provision for the quantity and better quality of materials it will need. For instance, this can be achieved by defining and monitoring the reorder level of inks and materials. Additionally, it will have to manage the ink levels both in its printing machine and photocopiers, as well the stock levels of other materials.
In a manufacturing company where the company is involved in flow production of different products, there must be a stringent control and management procedures with regards to materials used in the production process. For instance, when the company has to buy materials, a purchase requisition (PR) has to be raised. This has to be approved by the authorized manager. The PR is then sent to the purchasing department which then raises a purchase order (PO). The PO is then sent to store where the store officer will search for a quotation of materials needed. When store clerk receives goods, he has to check the quality and quantity of materials ordered by cross checking supplier’s invoice with goods received note, supplier’s invoice and the purchase order.
6. Scheduling
Scheduling simply refers to a plan of actions that state when certain controllable activities must be performed. In job production the scheduling of tasks will depend mostly on the mix of products. Tasks may not necessarily be completed based on their arrival pattern so as to reduce the costs associated in setting-up and changing-over machines. Jobs may also be scheduled based on the shortest time to get them processed and delivered to customers. The airline industry can be an appropriate example to illustrate the scheduling process in the service sector. The scheduling of airplanes for passengers starts right from check-in security procedures at the different counters prior to departure of a flight. The tickets booking, seats reservation, time for departure, duration of the trip is well scheduled according to the destination of the passengers, and arrival or destination of the airline. However, there can be delays in flights’ arrival or departure but the scheduling process remains the same. And every piece of information is communicated well in advance to the passengers for their convenience.
Batch production scheduling in the manufacturing environment can mean a finite capacity scheduling program applicable, for example, to pharmaceutical production process. A standard scheduling framework may be introduced so that the end batches are manufactured properly, consistently, and according to required specification and quality. Wrong scheduling of the tasks can be of a health hazard for people who are going to consume these pharmaceutical products, instead of providing a curative effect on people.
The manufacture of plastic bottles for various purposes (e.g. soft drinks, shampoos and ketchups) is an example of flow production mechanism which requires proper scheduling of each and every task in order to have desired bottles and avoid wastages. The scheduling process starts right where plastic materials is inserted in the molding machine for shaping according to specifications. It then move to the tube and high air pressure blowing process to get the required size, and finally the bottles are moved for working the lids, labels and packed for distribution. Scheduling of flow production necessitates a proper scheduling plan as it is easy to manufacture in large quantities but can be very costly in case of high defects or wastages.
Finally, a clear comparison and contrast was made between job, batch and flow methods with reference to examples from both manufacturing and service environments in order to meet the conditions stated in the case. We can therefore state that same approach cannot be applied to every method of production. Job production remains less complicated but very dynamic as compared to batch and flow production. The right choice of production technique, when considering the above discussed arguments, can increase the effectiveness and efficiency of any firm.