- 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:
- 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
