Do you think job production is the best method of production for a small business to use? Justify your answer.
CAMBRIDGE
O level and GCSE
Year Examined
May/June 2023
Topic
Production Methods
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Do you think job production is the best method of production for a small business to use? Justify your answer.
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Extracts from Mark Schemes
Do you think job production is the best method of production for a small business to use? Justify your answer.
Justification might include: Job production allows a business to produce goods that meet exact customer demands, which increases customer loyalty and sales. This approach also enables the business to offer unique and high-quality products, allowing for the possibility of charging higher prices. However, job production can be time-consuming as products are made to order, resulting in low output levels. Additionally, the lack of economies of scale can lead to higher average costs. Another consideration is that job production requires skilled labor, which can increase labor and training costs, as well as the need for a significant number of employees, making it a labor-intensive process.
On the other hand, batch production offers some advantages such as the ability to achieve some economies of scale, leading to lower unit costs. It also allows for a greater production output and the flexibility to produce a range of products. However, drawbacks of batch production include the potential for demotivated employees, increased labor turnover, the need to reset machines between batches, and added costs related to moving and storing semi-finished goods.
Overall, considering the factors discussed, including the costs associated with labor, the time required for production, and the lack of economies of scale, I believe that job production may not be the best method for a small business. The potential high costs and limited output may hinder the business's ability to generate profits effectively in the long run.