Batch Production

• Is a method of production where products are made in batches
• The products are made in groups rather than individually as in job production or in a continuous stream as in flow production
• Each batch is completed before starting the next group of products
• For example a shoe maker can produce shoes of the same design in groups of color or size
• Another example is that of a baker who puts a set number of bread loaves in an oven
• The technique is also used by paint makers where light colors are produced first before darker colors after the equipment has been cleaned
• Batch production is suitable for producing products that are identical to each other but are limited to a given number or only supposed to be produced for a limited time
• The labour involved is usually skilled or semi-skilled
• Products made are standardized in a given batch

Advantages of batch production

• The cost per unit is lower than in job production
• There is room for standardization
• Offers customers a variety of choices
• Can take advantage of economies of large scale production
• Can be used to meet seasonal demand, trial runs or minimal customization
• Initial capital outlay can be low
• There is flexibility to produce a number of products
• Works well where short run production is needed for example bakery shop
• It reduces the need for inventory

Disadvantages of batch production

• Limited customization
• Equipment has to be reconfigured every time a different batch is about to be produced
• If there is a fault it will affect the entire batch

To access more topics go to the O Level Business Notes