How to decide on production methods?

Updated: Feb 22

It depends on;

  1. Nature of product

  2. Size of market

  3. Demand needs

  4. Productive capacity


Nature of product


Certain product is most suitably produced using Job production as they require customization, such as hearing aid. This is because each device needs to be carefully calibrated according to different hearing needs and ear size.


Size of market


Some products have small or niche markets. As such, mass production of these goods will only create waste. Products like this are much suited using batch or job

production, where more variety can be produced in smaller quantity to fulfil specific market needs.


Demand needs


Products with high demand are most suitable using flow production, as it specializes in producing a similar and standard output continuously. Example goods are food and petrol that are basic needs that are constantly in demand.


Productive capacity


With more advance technology, productive capacity continues to increase as automation and artificial intelligence enables better quality products to be produced in various amount. The technology available and cost for each production method determines which production method is a better option.


RELATED CONCEPTS

  1. Cost

  2. Production methods

  3. Technology