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5.2

Operations methods

Unit 5 · Operations management · SL and HL

How a business organizes production depends on how much it makes and how varied its products are. This page evaluates the four operations methods in the syllabus, job, batch, mass/flow and mass customization, and how to choose between them.

🎯What you need to be able to do

  • Evaluate job production, batch production, mass/flow production and mass customization.

📚The business management

A chart of variety against volume. Job production is high variety, low volume, such as a custom surfboard or wedding cake. Batch production is in the middle, such as a bakery or garments. Mass or flow production is high volume, low variety, such as bottled drinks and noodles. Mass customization combines high volume with high variety, such as configured laptops and custom trainers.
Operations methods trade off volume against variety.

Job production

A single, unique product made to a customer’s specification: a custom surfboard, a wedding dress, a building, a bespoke website.

Advantages
meets exact customer needs; high quality; premium prices; motivating, skilled work; flexible.
Disadvantages
high unit costs; slow; needs skilled labour; no economies of scale; demand can be irregular.

Batch production

A group of identical items is produced together, then the process switches to another batch: a bakery making trays of one bread then another, garment factories making a style in several sizes.

Advantages
some economies of scale; more variety than mass production; flexible to demand.
Disadvantages
idle time and cost when switching between batches (cleaning, resetting machines); stock of work in progress to store; repetitive work.

Mass / flow production

Continuous production of large quantities of standardized products on a production line: soft drinks, instant noodles, cement, smartphones.

Advantages
very low unit costs through economies of scale and automation; consistent quality; high output.
Disadvantages
huge capital cost; inflexible (hard to change the product); repetitive, demotivating work; a breakdown stops the whole line; needs large, stable demand.

Mass customization

Combining the low cost of mass production with individual customization, using flexible technology and digital ordering: laptops configured online, personalized trainers, custom-printed products, meal kits chosen by each customer.

Advantages
customer choice at near-mass-production costs; higher prices and loyalty; production to order reduces unsold stock.
Disadvantages
needs advanced technology and flexible supply chains; complex logistics; longer delivery times than off-the-shelf.

Choosing a method

Depends on: the size and stability of demand; the product (unique or standardized); customer expectations; available finance and technology; the skills of the workforce; and the business’s strategy (cost leadership vs differentiation). Many businesses combine methods: a bakery may mass-produce bread but make celebration cakes to order.

✏️Worked example

A Bali surfboard maker makes custom boards to order (job production). Demand from surf schools for standard beginner boards is growing. Evaluate whether it should add batch production for these boards.

For: beginner boards are standardized, so making them in batches of 20 lowers unit costs through bulk materials and repeated set-ups; faster delivery to surf schools; frees skilled shapers for premium custom boards.

Against: needs moulds and space; stock of unsold boards if demand falls; the brand’s handmade image may weaken; staff may find repetitive work demotivating.

Judgment: adding batch production for a separate beginner range is sensible if demand is reliable (for example, contracts with surf schools), while keeping job production for the premium brand.

Check it. Link the method to volume, variety, demand stability and cost for the particular business.
“Mass production is always best because it is cheapest.” It suits only large, stable demand for standardized products.

📝Practise

Work through these on paper, then reveal the answer.

1. [2 marks] Define the term batch production.
A method in which a group (batch) of identical products is made together, passing through each stage before the process switches to a different batch.
2. [2 marks] Distinguish between job production and mass customization.
Job production makes one-off products individually, usually by skilled workers at high unit cost; mass customization uses flexible, large-scale technology to produce individually tailored products at close to mass-production cost.
3. [4 marks] Explain two disadvantages of flow production.
(1) Inflexibility: the line is designed for one standardized product, so changing it for new tastes is slow and expensive. (2) Repetitive work reduces motivation and can increase absence and turnover. (Also: high capital cost, breakdowns stop everything.)
4. [4 marks] Explain why a wedding-dress designer uses job production.
Each customer wants a unique dress to her measurements and taste, and is willing to pay a premium. Job production allows complete customization and high craftsmanship; volumes are too low and variety too high for batch or mass methods.
5. [4 marks] Explain how mass customization can reduce stock costs.
Products are made after customers order and specify them, so the business does not hold large stocks of finished goods that might not sell. It holds components instead, which can be combined in many ways, reducing storage costs and waste from unsold products.
6. [10 marks] Discuss whether a growing craft-beer brewery should move from batch to flow production.

For: lower unit costs, higher capacity to supply supermarkets, consistent quality, economies of scale.

Against: large investment and risk; loss of variety and seasonal specials that define craft brands; demand may not be large or stable enough; staff skills and motivation.

Judgment: depends on demand forecasts and strategy; a hybrid (flow for core beers, batch for specials) often suits craft brewers.

🔗Go deeper — other people’s work

These are external resources, not mine. If one stops working, tell me and everything above it on this page still stands.

  • Factory tour videos from manufacturers — see flow production in action.
  • Harvard Business Review — articles on mass customization.
  • Tutor2u — production methods revision.