Production- Batch

• Generally used for larger businesses.
•  The work for any task is divided into parts /operations. Each operation is completed through the whole batch before the next operation is performed. The main aims of the batch method are, therefore, to:

- Concentrate skills (specialisation)

- Achieve high equipment utilisation

• This technique is probably the most commonly used method for organising manufacture. E.g.the production of electronic instruments, clothing, cricket bat production, baking preparation.

 ADVANTAGES

•  Possible to achieve specialisation of labour. 
•  Capital expenditure can also be kept lower ( reduces unit costs)
•  Can address specific customer needs (e.g. size, weight, style) 
• Use of specialist machinery & skills can increase output and productivity.

DISADVANTAGES

•  Careful planning is required to ensure that production equipment is not idle.
• There is a high probability of poor work flow, particularly if the batches are not of the optimal size or if there is a significant difference in productivity by each operation in the process. 
• often result in the build up of significant "work in progress" or stocks (i.e. completed batches waiting for their turn to be worked on in the next operation).
  • Potentially de-motivating for  staff 
  • Need to keep stocks of raw materials. Cash also investment in work-in-progress
  • Time lost switching between batches – machinery may need to be reset