Higher Business Management - Production Methods - Factors

When deciding on what production method to use, a firm must think about several factors that can influence their choice:

If we start off by using TCP (Time, Cost & People) then we can say that:

Cost - The finances the firm has will affect the method of production, if they are very healthy they could aim for the flow method which will involve machinery and automation.

People – the employees ability or their skills are important. If you have a highly skilled workforce then you may opt for job production, whereas if the employees are low skilled, then flow production may be a better option.

The technology available to the firm may also affect the method of production utilised. If it is more labour intensive, then job production would seem a logical choice.

Quantity - The volume that is needed or demanded will affect production methods, for high demand, flow is the best option and most economical in the long run.

Quality – the quality of materials bought from suppliers will affect production methods. Quality products may lend themselves more to job production, whereas cheaper materials may be easier to use in flow production. Also if high quality is needed, then job production would be best as it uses the expertise of the workers to maximum effect.

The type of product will affect the production method. A wedding dress or an Ocean liner will lend themselves to job production; rolls, sausages, and many other foods will lend themselves to batch production, and finally cars will be better suited to flow production.

The size of the business may affect the method of production. Larger firms will aim for flow production. Small businesses may only have the option of job production due to costs and labour.