Operation methods - Comparison

Regarding stock, this involves low quantities of raw materials and fished stock but a high amount of work in progress

The average cost per unit produced is medium

Capital can involve large numbers of general-purpose machines designed for a specic function

Production is swift

Capital (machinery) can be flexible as it depends on specifc use

High quantities of raw materials are needed (buffer stocks) – there will be medium amounts of work in progress and fiished stock

A mixture of machines is used, but this method is based on general- purpose machines

Highly skilled workers are needed – and they may be craft workers

Production time: Once set up, production can be swift

There is a long set-up time as there is a new set-up for every new job.

The average cost per unit produced is high

Workers are unskilled and need minimum training

There will be high quantities of raw materials and finished stock, and a low amount of work in progress

Production time is likely to be long

The average cost per unit produced is low

Workers are semi-skilled and need to be fexible

There is a very long set-up as it takes time to synchronize the whole process

As set-up is usually a modifcation of an existing process, set-up time can be reasonably fast