Methods of PRODUCTION

There are 3 different kind of methods of production.

• JOB 
• BATCH 
• FLOW

Job

"A type of business model that performs or creates single and customized projects for a specific client. Job production is typically performed by skilled experts to a high standard and usually allows for considerable flexibility and customization in the finished product." 

Read more: http://www.businessdictionary.com/definition/job-production.html#ixzz2F7fpHYF9

 So, basically the job production is when a single worker or a group of worker creates or design one product without using any help. They work on THEIR SELVES!

For an example is a fashion designer designing a dress for a female actress. He/She only designs it for that specific actress and works on his own, without anyone helping him. That situation is considered as a JOB PRODUCTION.

Batch

"A type of business model that performs or creates single and customized projects for a specific client. Job production is typically performed by skilled experts to a high standard and usually allows for considerable flexibility and customization in the finished product."

Read more: http://www.businessdictionary.com/definition/job-production.html#ixzz2F7fpHYF9

Batch is when a group of people doing different things to design or create a certain product. For an example is when we produce bread. We use the same type of machinery to create the bread, except that there will be an extra step for instance, adding flavor or decorations on the bread. Get it? Or is just too confusing? Haha, do not worry, let me show it in a picture. 

 So, the product is being passed on to the other group that is doing other things in order to be produced. Easy? :)

Flow

Flow is basically the same process as the Batch production. Except that everyone does it at the same time. So as the workers are continuing the flow, a huge number of products will be produced. A great example is the school library. The students are divided into 4 groups. The first group will be cutting the slips, while the second group is pasting the return slips at the back of the book. The third slip will prepare the books that are pasted with the return slips properly, the books will then be taken to the other group that stamps the book. So, it will be going non-stop. And the number of books that are being stamped is increasing. :)

How DO We Decide?

Production and Consumption

So, production is basically related to Marketing. According to the businessdictionary.com, 

"Production is the processes or methods used to transform tangible inputs (Such as raw materials, semi-finished goods) and intangible inputs (Such as ideas, information or even knowledge) into goods or services. Resources are used in this process to create an output that is suitable for use or has an exchange value (The quantified worth of one good or service expressed in terms of the worth another.(businessdictionary.com,2012))."

Consumption is the process in which the substance of a thing is completely destroyed, used up or incorporated or transformed into something else. Consumption of goods and services is the amount of them used in a particular time period.(businessdictionary.com,2012) It is basically spending money on our needs such as buying food, clothes (in terms of economically). Another example is when companies, factories uses this money not for investments. Investments such as cars.

References:

http://www.businessdictionary.com/definition/production.html

http://www.businessdictionary.com/definition/exchange-value.html
http://www.businessdictionary.com/definition/consumption.html

How do we decide?

Well,production is determined by consumer's social needs. Consumer are actually the people who purchases goods or services in retail. They are mostly known as the customers. They are a group of people that exchanges their money for the goods or services that they need/want. As what they always say, 

"Customers are always right!"

Even though there are some certain times where they are not always right.

References:
http://www.businessdictionary.com/definition/consumer.html

What to produce?
Example that I will be using is the Cake Industry.

In producing goods or services, the main question that always appear in our heads are;

"What to produce?" 

Deciding on what to produce can be a tough decision for some certain factories, or businesses. It is like a battle between two different products. As quality of the product increases, the number of consumers/customers purchasing the product would also increase. The consumer's desires are one of the factors that determines the production of a certain product.  

For an example is choosing between producing a carrot cake or a chocolate cake for a kid's birthday party.
When we see at the two choices given:

• Carrot Cake
• Chocolate Cake

The product that will be produced among this two cakes has to be the best and fits the specification (such as the flavor and the appearance of the cake). The answer is obviously chocolate cake. Since the flavor and the appearance of the cake seems to attract more kids, even though it seems to be unhealthy compared to the carrot cake. We can also see it in terms of the consumer's demand. The demand is one of the factors that influences the production of certain goods or services. Trends, habits of the consumer can also affect the production. For an example is the trend of purchasing a chocolate cake for birthdays seems to never stop. Every kid dreams of having a chocolate cake for their birthday. The demand of purchasing the carrot cake seems to only be high only during the festive seasons, especially Christmas.

Reference:
faculty.winthrop.edu/stonebrakerr/book/what_to_produce.htm

How to produce?  

How to produce a cake? Well, there are many types of ways to produce a cake. This is a video of how they produce a basic pound cake.

Delicious huh? ;)
Reference:
http://www.youtube.com/watch?v=zI7UwdfzYXk

When to produce?

Cake is a basic need for a human being. Everybody purchases it whether it is during the winter, summer, spring or even autumn. The number of purchasing these cakes increases especially during festive seasons such as Christmas, Hari Raya and Chinese New Year. But it is mostly purchased for birthday parties!! Everyone enjoys eating cake, so the production of the cake never stops.