Batch Production

What is Batch Production?

A method of production in which a quantity of one type of product is made, after which the process is changed over to make a quantity of a different type. It combines variety with some economies of scale, but changeover time is lost output and work in progress accumulates between stages.

This definition is part of the Operations Management chapter in Cambridge O Level Business Studies.

Concepts related to Batch Production

• changeover time
• work in progress
• product variety

Examiner tips on Batch Production

• The unit-cost line is the one that gets misremembered. Flow production has the lowest unit cost at high volume, because its enormous fixed costs are spread across an enormous output. Run the same line at a third of capacity and the unit cost can exceed batch production. Never write “flow production is cheapest” without the volume condition attached.