Batch Production | Types Of Production System

What is Batch production :

Batch production pertains to repetitive production. It refers to the production of goods, the quantity of which is known in advance. It is that form of production where identical products are produced in batches on the basis of demand of customers’ or of expected demand for products.

This method is generally similar to job production except the quantity of production. Instead of making one single product as in case of job production, a batch or group of products are produced at one time. It should be remembered here that one batch of products may not resemble with the next batch.

Under batch system of production the work is divided into operations and one operation is done at a time. After completing the work on one operation it is passed on to the second operation and so on till the product is completed. Batch production can be explained with the help of an illustration. An enterprise wants to manufacture 20 electric motors.

The work will be divided into different operations. The first operation on all the motors will be completed in the first batch and then it will pass on to the next operation. The second group of operators will complete the second operation before the next and so on. Under job production the same operators will manufacture full machine and not one operation only.

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Batch production can fetch the benefits of repetitive production to a large extent, if the batch is of a sufficient quantity. Thus batch production may be defined as the manufacture of a product in small or large batches or lots by series of operations, each operation being carried on the whole batch before any subsequent operation is operated. This method is generally adopted in case of biscuit and confectionery and motor manufacturing, medicines, tinned food and hardware’s like nuts and bolts etc.

The batch production method possesses the following characteristics:

1. The work is of repetitive nature.

2. There is a functional layout of various manufacturing processes.

3. One operation is carried out on whole batch and then is passed on to the next operation and so on.

4. Same type of machines is arranged at one place.

5. It is generally chosen where trade is seasonal or there is a need to produce great variety of goods.

Advantages Of Batch Production

There are several advantages of batch production;

it can reduce initial capital outlay (the cost of setting up the machines) because a single production line can be used to produce several products. As shown in the example, batch production can be useful for small businesses that cannot afford to run continuous production lines. If a retailer buys a batch of a product that does not sell, then the producer can cease production without having to sustain huge losses. Batch production is also useful for a factory that makes seasonal items, products for which it is difficult to forecast demand, a trial run for production, or products that have a high profit margin.

Disadvantages Of Batch Production

Batch production also has some drawbacks. There are inefficiencies associated with batch production as equipment must be stopped, re-configured, and its output tested before the next batch can be produced. Idle time between batches is known as downtime. The time between consecutive batches is known as cycle time. Cycle time variation is a Lean Manufacturing metric.

Continuous production is used for products that are made in a similar manner. For example, a certain car model has the same body shape and therefore, many of the same model cars can be made at the same time without stopping, decreasing manufacturing cost.