- Production is organised in a continuous sequence.
- Able to produce large quantities.
- Usually the product is simplified and standardised.
- Capital intensive.
Advantages
- Unit costs are reduced as firms gain economies of scale.
- The process is highly automated, which reduces the need for labour.
- No need to stock large quantities of goods.
Disadvantages
- Very high set-up costs.
- No possibility of producing a wide product range and meet different customers’ needs.
- The workforce is not motivated.
- Breakdowns are costly.
FAQs: Flow Production & Business Planning
Flow production, also known as continuous production or line production, is a manufacturing method used for high-volume production of identical or very similar products. In this system, products move continuously through a fixed sequence of operations, often on an assembly line. It's designed for efficiency, speed, and consistency, minimizing delays and work-in-progress inventory. Examples include car manufacturing or bottling drinks.
Advantages:
- Very efficient for large volumes, leading to lower cost per unit.
- High output and speed of production.
- Consistent product quality (less variation).
- Requires less skilled labor once the process is set up.
- Reduced work-in-progress inventory.
Disadvantages:
- Very high initial setup costs for specialized machinery.
- Lack of flexibility; difficult and costly to change the product design or vary production.
- Requires constant, high demand for the product.
- Problems at one stage can shut down the entire line.
A production flow chart is a visual representation of the step-by-step process involved in creating a product or delivering a service. In a business plan, it serves several purposes:
- Clarifies the Operations: It clearly shows investors, partners, and employees exactly how the product will be made or service delivered.
- Identifies Resource Needs: Helps determine what equipment, materials, and labor are required at each stage.
- Highlights Potential Bottlenecks: Can reveal inefficient steps or areas where delays might occur.
- Demonstrates Planning & Feasibility: Shows that the business has a well-thought-out plan for its core operational activities.
For businesses like a home bakery, a simple flow chart might show steps from ingredient sourcing, mixing, baking, cooling, decorating, packaging, to distribution/sale.