- Production of a single product at a time.
- Used for small orders (“One-offs”).
- Small number of units produced.
- Highly skilled workforce.
- Appropriate for start-ups.
- Labour intensive.
Advantages
- The organisation of this production method is simple.
- The workforce is motivated.
- Firms produce original and unique products according to the wishes of the customer.
Disadvantages
- High labour costs.
- Lead times can be lengthy.
- May become costly once the demand for the good rises.