Discuss the factors a business should consider before changing from a batch to a mass (flow) method of production. - Leaving Cert Business - Question C - 2018
Question C
Discuss the factors a business should consider before changing from a batch to a mass (flow) method of production.
Worked Solution & Example Answer:Discuss the factors a business should consider before changing from a batch to a mass (flow) method of production. - Leaving Cert Business - Question C - 2018
Step 1
One type of product only (mass produced standardised product)
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Answer
A business must evaluate whether it will focus on producing a single type of product using a mass production method. This consideration includes understanding market demand and whether the business can maintain a competitive price point without sacrificing product quality.
Step 2
Demand/Does the market exist?
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Conducting market research is crucial. The business should assess if there is sufficient demand for the product at the planned scale of production. If the market size is inadequate, the investment in flow production may not be justified.
Step 3
Can quality be maintained?
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Switching to flow production can affect quality consistency due to the higher speed of production. It’s important for the business to ensure that quality can be maintained across larger batches of goods, as quality issues can damage the brand reputation.
Step 4
Capital investment required/necessary finance
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Significant capital may be required to adapt to flow production. The business must consider whether it has the necessary financial resources or if it can secure financing without jeopardizing its financial stability.
Step 5
Staff working conditions
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Implementing flow production can lead to more repetitive work, which might affect employee morale. Businesses should evaluate if staff can handle the monotonous tasks or if there may be a high turnover rate, considering potential redundancy issues.
Step 6
It will be more difficult to change/adapt the product
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With flow production, adaptability can decrease. The business must consider how flexible they need to be in responding to customer needs. A more rigid production system could mean challenges in product variations.
Step 7
The amount of space available
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More space is often required for flow production setups. The business should assess whether they can accommodate the necessary machinery and workflow, taking into account storage needs for raw materials and finished goods.
Step 8
Impact on the brand name
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The shift to mass production could impact the business's brand name and reputation. Businesses need to evaluate whether this change aligns with their brand values and if it could enhance or detract from their market position.
Step 9
Competition
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Understanding the competitive landscape is essential. If competitors already have established flow production capabilities, entering this market could be challenging. The business must consider whether it can compete effectively under these conditions.
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