Batch production refers to repetitive production. It refers to the production of goods whose quantity is known in advance. It is that form of production in which identical products are produced in batches based on customer demand or expected product demand.
This method is generally similar to job production except for the quantity of production. Instead of manufacturing a single product, as in the case of professional production, a batch or group of products is produced at once. It must be remembered here that one batch of products may not look like the next batch.
In batch production system, work is divided into operations and one operation is performed at a time. After work is completed in one operation, it is passed to the second operation and so on until the product is completed. Batch production can be explained with the help of an illustration. A company wants to manufacture 20 electric motors.
The work will be divided into different operations. The first operation on all engines will be completed in the first batch and then move on to the next operation. The second group of operators will complete the second operation before the next one, and so on. In job production, the same operators will manufacture the complete machine and not just one operation.
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The batch production method has the following characteristics:
1. The work is repetitive in nature.
2. There is a functional layout of various manufacturing processes.
3. One operation is performed on the entire batch and then passed to the next operation, and so on.
4. The same type of machines are organized in one place.
5. It is usually chosen where trade is seasonal or there is a need to produce a wide variety of goods.
Advantages of batch production
There are several advantages to batch production;
can reduce initial capital outlay (the cost of installing machines) because a single production line can be used to produce multiple products. As shown in the example, batch production can be useful for small businesses that cannot afford to run continuous production lines. If a retailer buys a batch of a product that it does not sell, then the producer can cease production without having to bear huge losses. Batch production is also useful for a factory that makes seasonal items, products for which demand is difficult to predict, a test run, or products with a high profit margin.
Disadvantages of batch production
Batch production also has some disadvantages. There are inefficiencies associated with batch production, as equipment must be stopped, reconfigured, and its output tested before the next batch can be produced. Idle time between batches is known as downtime. The time between consecutive batches is known as cycle time. Cycle time variation is a Lean Manufacturing metric.
Continuous production is used for products that are made in a similar way. For example, a certain car model has the same body shape and therefore many of the same car models can be made at the same time without stopping, decreasing the manufacturing cost.