3 October 2019

Advantages and disadvantages of batch production

Batch production is a manufacturing process in which a job passes in lots of batches through the functional departments and each batch can have a different routing. It is common in more than just bakeries and small businesses that produce in controlled quantities. Let us have a deep insight into the advantages and disadvantages of batch production in this article. 

Advantages of batch production : 

  • Products can be produced in mass quantities, reducing the overall cost per each quantity. 
  • Machinery is not always on that saves the energy costs. 
  • Better utilization of plant and machinery. 
  • Promote functional specialization. 
  • The cost per unit is lower than the production of job orders.
  • Generally lower capital cost because of lower investment in plant and machinery.
  • Companies only focus on a small group of products, leading to greater quality control and product expertise. 
  • Smoother and more consistent production flow over time lends itself to repeat order. 
  • Job satisfaction exists for operators. 
  • It has the flexibility to produce a variety of different products.
  • It is ideal for seasonal orders, or trial runs of a new product. 
  • It reduces inventory. 
  • Reducing the risk of simply concentrating on one product. 
  • Labour cost reduced so the final price is lower. 
  • Production is faster. 
  • Begins to take advantage of economies of scale. 

Disadvantages of batch production : 

  • Each batch must be tested for quality and uniformity before batches can be produced, causing ideal downtime. 
  • Machine must be stopped and recalibrated between batches, also causing downtime. 
  • High storage cost for large batches for the same products. 
  • Work is less interesting and repetitive works can demotivate workers. 
  • Material handling is complex of irregular and longer flows. 
  • Production planning and control are complex. 
  • If the prototype has an error all the rest of the same products will have that fault as the machine replicates exactly so the loss of material and time would be costly. 
  • Labour is required to move items from one stage of batch process to another.
  • If lots are small, the cost of the units will be high.
  • Larger stock of raw materials must be kept. 

There is clearly a place for batch production, primarily with companies seeking to make consistent, on-demand product while keeping costs low and ensuring quality standards. Share your experiences regarding batch production in the comments section below.

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