2.31 Business Operations

The purpose of business operations is to produce goods and services and there are different ways of doing this.

Job production – where one product is made at a time e.g. wedding cakes, suits. Can be slow and labour intensive. Used to create one-off, niche or bespoke products (remember the Fender guitar case study we looked at in class – click here to see it). Higher prices can be charged to customers.

Batch production – where small quantities of identical products are made. Machines can be switched to make something else e.g. a bread factory can switch from loaves to rolls. It’s flexible so can be changed to meet customer needs or changes in demand. However, workers might become less motivated and there is downtime in production when machines are being reset.

Flow production – where products are made in huge quantities, often 24/7 and suitable for mass market products. Larger quantities mean the business can buy in bulk and benefit from economies of scale.