Choosing between Batch and Flow Production methods
The choice of whether to use a batch or flow production process will be determined by the financial resources of the firm and the extent to which it seeks to produce a differentiated product. The table below looks in different aspects of these production methods
Factors to be considered | Batch Production | Flow Production |
Size of order | Small | High |
Output | Low | High |
Product range | High | Low |
Product variation | High | Low |
Flexibility of process | High | Low |
Dedication of machinery | Low | High |
Capital investment | Low | High |
Process time | High | Short |
Economies of Scale | Low | High |
Level of labour skill | High | Low |
Before taking a decision a business has to look into all these aspects and see what is more appropriate for them and then make a choice.