Under batch production, the production of several items of the same type takes place. Each batch is required to go through a common stage in the production chain before it moves on to the next one. With the growth of a business organization, the volume of activities handled by it also grows. This method adopts for achieving the objectives of keeping pace with such growth and for the sake of convenience. In the following article, you will know the complete information about batch production.
Batch Production
Batch production helps in splitting the entire work into smaller operations; one operation is completed in respect of the entire batch, and only after that the next operation starts. This technique is quite popular, as it is the most organized method of manufacturing.
Some examples of the industries where this method is helpful are:
i) Production of electronic instruments like transformers.
ii) Drugs and pharmaceuticals manufacturing.
iii) Medium and heavy machinery, etc.
While using this technique, division and specialization of labor come naturally, which means a low capital investment. However, elaborate planning requires the management of idle time so that it is well-spent. Through the use of this method, the production department can yield the most beneficial results, which at times may be surprising. In this connection, the significance of effective monitoring and control mechanisms needs to be emphasized. In the absence of such a mechanism, the full potential of the method would remain underutilized.
Characteristics of Batch Production
The following are the characteristics of batch production:
1) This method is rather difficult to adopt by a business organization.
2) Manpower with special skills and expertise requires under the technique.
3) Equipment utilization is at its maximum extent.
4) The flow of work could be better.
5) Value-addition and completion of work is slow.
Advantages of Batch Production
The following are the merits of batch production:
1) Plants, machinery, pieces of equipment, etc., are put to use efficiently and optimally.
2) Functional specialization is encouraged.
3) Under it, the cost per unit tends to be lower in comparison with job order production.
4) Capital investment in plants and machinery is comparatively low.
5) The technique is flexible enough to undertake and process several products simultaneously.
6) Operators have a satisfied feeling of job satisfaction.
Disadvantages of Batch Production
The following are the demerits of batch production:
1) Due to irregular and longer flows, it becomes a complicated affair to handle materials.
2) An elaborate and complicated planning and control requires for the smooth functioning of the production.
3) The level of Work-in-Process (WIP) inventory is generally at a higher level and department.
4) Repetitive Installation of Machinery and Equipment causes high set-up costs.