Batch production

Batch production makes a group of similar goods — a batch — using the same machinery. A set quantity is produced, then the machinery is cleaned or reset so that a different batch can be made.

How a batch is made

A business chooses a batch size, such as 150 units, and runs the machinery until that quantity is complete. The equipment is then stopped, cleaned and set up again for the next batch, which could be a different size, colour or product. For example, a furniture workshop might run a batch of 150 oak chairs, then stop to reset its saws and jigs to produce 150 walnut chairs.

Why businesses use batch production

• It is faster than job production, because one run of the machinery turns out many similar items instead of a single one-off product.
• Workers repeat the same tasks, so less employee skill is usually needed than for individually made products.
• Output per worker is higher than in job production and unit costs are lower, because machinery and setup time are shared across the whole batch rather than one item.
• It allows some variety: each batch can be a different product, size or colour, which flow production cannot easily do because it makes a continuous run of identical items.

Drawbacks of batch production

Every changeover creates downtime — time when the machinery is being cleaned and reset and nothing is produced. That lost time lowers productivity and pushes up costs, so a batch producer cannot match the speed and low unit cost of a flow line, which carries on running without pausing to switch products. This is why productivity sits between job and flow production, and unit costs do too: lower than job production, but higher than flow production.