Transcript for:
Mass Production

[Music] hi there welcome along to another taking the best tutorial in this video we're going to investigate the topic of mass production or as some examples may refer to it as flow production which is an alternative technique to methods such as job production or batch production I'll put a link in the corner of the screen to videos you can revise with on those topics but what separates or differentiates mass production from those techniques is that as with job production we're making items one at a time unique spoke items and with batch production we're making groups of identical items with mass production we're going to have a production line which acts almost like a conveyor belt where identical products are rolling off this convey about one after the other so we're producing on a much larger a mass scale and the items that a rolling of a production line are all homogenized each one is identical to the last now from making use of mass production it has some very distinct benefits and challenges that come with it that we might need to know that for example so the first benefit is of course now we can produce on a much larger scale mass production is a quicker more high-volume method of production imagine items literally tumbling off the production line and each one is identical to the last now that higher level of output is going to help lower the cost of producing each item because the more items we can produce in a given time period the more efficiently we are operating so that drives down the cost of each item that we manufacture and with this higher level of output it means the firm can take advantage of greater degrees of economy of scale as well so we're producing in higher volumes which means we can do things such as order the raw materials we need in greater quantities as well and take account of those purchasing economies of scale we've also got the notion that with mass production every item that we're producing is identical to other items on the production run and with certain products that can be advantageous because the customer may be buying this product repeatedly and would expect or would desire a consistent experience each time they use and consume the product so with a product such as a carbonated drink we wouldn't expect that product to appear or taste different each time we were to consume it so mass production is good in the development of standardized products to give the customer the same experience purchase after purchase we could also say that when we're using production lines and we utilizing mass production it is the production method that gives us the greatest potential for what's known as the division of labor where we break up or we compartmentalize the production process into distinct stages and we may be able to use specialist machinery but perhaps even more importantly we may be able to hire specialist workers to perform each stage of the production process now with the division of labor there becomes the potential for us to be more productive as an organization because if workers are only completing one stage of the production process we can focus their training on that one stage we can allow them to repeat that one task in the production process over and over again they will become more specialized in the role that they are fulfilling which means they will be able to do it quicker they will be able to do it more productively they may be able to do it to a higher level invoking better quality so the fact that mass production facilitates the combined use of the division of labor in the production process makes it a very cost minimizing productivity increasing way of producing but it does come with some limitations and the first of those is a counterbalance to the benefits that flow production produce standardized products because although that offers the customer a consistent experience in their consumption it may be that consumers are not willing to pay as higher price for a standardized product often customers will pay a higher price for a product that is unique or is bespoke or has been designed with their needs in mind as products become more standardized and mass-produced it may mean that we can't achieve as high a price per unit the next limitation is the enormous investment that might be required in order to facilitate the purchase and the set up of a production line so we could be talking about millions or tens of millions of pounds worth of equipment and machinery and robotics not to mention the ongoing costs of the maintenance and fixing breakages that may occur in our very complex very high-tech very intricate production line not to mention the training that we may need to give workers in order for them to be able to fulfill their role on the production line itself so it can involve a significant upfront investment in technology in order to establish our production line even though in the longer term it may mean that per unit we are able to produce cheaper the other concern we might have might be associated with the human resources of the organization and when we use a production line and when we utilize the division of labor it can have a damaging impact on the motivation of our employees if you can trust it with job production when workers might work on the production of an item from beginning to end experiencing far greater variety in their work a being able to build up and utilize a far greater variety of skills with a mass or a flow production line we using the division of labor workers are now only completing one truncated repetitive process now that can lead to issues with boredom a lack of stimulation a lack of challenge which develops motivational issues within the organization and we know that the symptoms of poor motivation can be issues such as absenteeism which is a cost to the business because they'll have to recruit temporary staff to cover them it can also lead to issues of labor turnover as workers who are unchallenged and dissatisfied in their role seek employment elsewhere and we know that a high labor turnover rate increases the recruitment costs and the training costs of the organization as well as sucking expertise out of the business that has to be replenished and rebuilt up so there's certainly cost advantages in the long term to operating mass production and for firms with significant demand that need to produce on a large scale it is widely used but it does come with some limitations to do with HR to do with the upfront expenditure that we may be able to critique in our exam answers hopefully that tutorial helps you with that topic we'll see you soon but keep on taking the base you you you