This article is about mass production (flow production). There are several different ways in which goods and services can be produced. The typical production methods in the modern business include:
- Job production.
- Batch production.
- Mass production (flow production).
- Mass customization.
- Cell production.
What is mass production (flow production)?
Mass production (flow production) means producing a large volume of standardized products in a continuously moving process using a production line (a conveyor belt). The manufacturing process does not stop between each area, but items move from one stage of production to another stage – without having to wait for any other products – until identical goods with the same specification reach the finished state. Mass production (flow production) can also involve the assembly of individual components, with parts bought from other companies, and each individual operation done in sequence one after the other – additional features are added until the product reaches its finished state.
Main product features: Standardized products in very large quantities. Mass produced goods with the same specification. Most of the products have low prices as there are substitute products. Homogeneous items are continuously produced in the same way using the production line on a much larger scale.
Suitability: Large businesses producing large volumes of standardized products. Large scale production requires dedicated machinery operating near full capacity, hence associated with highly capital-intensive production.
Examples of products: Cars, buttons, ball bearings, computer microprocessors, motor vehicles, LEGO toys, office supplies, paper, car manufacturing, tinned products, garments, chocolate bars, printing magazines, bottled water, beer, toothpicks, screws, nails, oil refineries, identical undifferentiated cookies, printing millions of identical copies of a particular daily newspaper.
Level of demand: There has to be steady demand and there must be mass market for identical products with high and consistent consumer demand. It also suits the production of large numbers of a standardized item that only require minimal alterations. The demand results from impersonal mass promotion.
Essential requirements: Involves having high degree of automation – expensive specialized capital equipment that will fulfill steady demand for standardized products. High set-up costs (e.g. purchase and installation), running costs (e.g. servicing and maintenance) and replacement costs (e.g. when equipment becomes obsolete).
Set-up time: There is a very long set-up as it takes time to synchronize the whole process. Once set up, production assembly lines can run 24 hours a day, seven days a week to maximize output and eliminate waste with little maintenance required. However, if production stops, it will take extra time and cost to start and stop the production process all over again.
Cost per unit: Very low unit cost due to capital-intensive production relying on automation with robust possibilities for economies of scale.
Capital (machinery): Specialized capital equipment is used, mainly large numbers of general-purpose machines designed for a specific function. Mass production (flow production) is highly capital-intensive and automated with the use of robotics which are very expensive.
Labor (workers): Mass production (flow production) requires workers to be relatively low-skilled and semi-skilled for working with both mechanization and automation. The assembly line is often associated with the motor industry. It relies entirely on automated systems with very few workers required. People are used at each work station to work on a single task essential to the overall production process which can cause boredom. Low wages are paid, minimum training is offered and there is a large pool of applicants to choose from.
Production time: When the production process is set there will be quick order response. There is a continuous production with no pause or stoppages. However, automation requires careful planning to synchronize all the stages.
Stock: High quantities of raw materials and components are required all the time. The constant output rate should make the planning simple which can lead to the minimization of input stocks through the use of Just-in-Time (JIT) inventory management method. Additionally, there will be high amount of finished goods requiring storage.
Quantity produced: Requires large orders to recoup the investment. High volume of standardized identical products is made using a continuously moving process. It is all about large quantity to lower unit cost of production.
Quality: Emphasis on high and consistent quality that is checked at various points throughout the production process.
Advantages of mass production (flow production):
- High volume production. Mass production can produce large quantities of products quickly and efficiently. This allows companies to meet high demand and take advantage of technical economies of scale. As this production method is capital-intensive, output is on a large scale.
- Low cost per unit. Mass production reduces the cost per unit of a product as output increases by spreading the Fixed Costs (FC) of production, such as the cost of machinery and overhead, over a large number of units. Also, low unit costs due to constant working of machines, high labor productivity and various economies of scale possible thanks to large order. This makes mass-produced products more affordable for consumers.
- Standardized products. Mass production produces standardized products that are consistent in quality and performance. This makes it easier for consumers to compare products and choose the ones that best meet their needs. When products are all of the same quality, it helps consumers with buying decisions. The use of dedicated machinery and equipment means that products are of a standardized quality. Workers also specialize so become experts in their area of the production process. This enables the business to achieve a low defect rate and to maintain quality standards.
- Efficient use of resources. Mass production uses resources efficiently by minimizing waste and maximizing output. This can help to reduce the environmental impact of manufacturing. Machines can work continuously if necessary. While machines may break down from time to time, they do not require wages, rest breaks or motivating, so it helps to reduce costs of production in the long run.
- Low labor costs. Labor costs tend to be relatively low as relatively unskilled workers are required to operate much of the machinery. Much of the process is mechanized and there is little physical handling of the products. Also, possibly less skilled labor is required, hence low training cost.
- Predictable production schedule. Mass production has a predictable production schedule, which allows companies to plan and manage their inventory effectively. This can help to reduce costs and improve efficiency.
Disadvantages of mass production (flow production):
- Requires large upfront investment. Mass production requires a large upfront capital investment in production line technology – machinery and equipment. Expensive to set up flow-line machinery will be the barrier to entry for small businesses. All in all, set up costs are very high and break downs can be costly as production lines are vulnerable to stoppages. Whole production line may be halted if one machine is out of order.
- Not flexible. Mass production is efficient but not flexible and cannot easily adapt to changes in demand or product design. It will often be very difficult and time-consuming to switch from one type of product to another because production lines are difficult to change. This can make it difficult for companies to compete in dynamic markets as it is difficult to satisfy changing customer requirements. There can be some variety in the finishing touches towards the end of the assembly line, such as color, although these are also made on a relatively large scale. Additionally, there is inflexibility because once the production process begins there is little chance of altering the design or specifications. The reliance on assembly lines means any breakdowns will cause major problems for the business. If one part of the production line breaks down, the whole production process will have to stop until it is repaired.
- High storage costs for high volumes of stock. Large-scale output also means the need for an effective storage system due to the large volume of stock. High levels of raw material, work in progress and finished goods inventories are held. This increases business costs.
- Can lead to worker boredom and fatigue. Mass production can lead to worker boredom from monotonous work and fatigue due to the repetitive nature of the work. Workers are not very motivated, since their work is very repetitive. This can lead to decreased productivity and increased absenteeism.
- Can have a negative impact on the environment. Mass production can have a negative impact on the environment due to its reliance on fossil fuels and its generation of waste. If an accident happens, like part of chemical or oil plant blowing up, it can cause major damage to nature.
Case Study 1: The Coca-Cola Company uses flow production processes to 2,000 cans of Coke per minute at its bottling plant when operating at full capacity. The cans move through the various stages independently on an automated production line instead of the workers moving from one work station to another. The firm can make changes to the contents of the cans and the labeling on them without having to alter the flow production system – producing Coke, Sprite and Schweppes Soda Water on the same production line. Designated workers check every bottle to ensure that there are no cracks or defects.
Case Study 2: Mass production was first commercialized by Ford in the USA first commercialized mass production (flow production) by introducing the world’s first automated production line in the 1920s to boost productivity of his Model T cars.
Case Study 3: Very expensive industrial complexes like oil refineries or chemical plants need to work 24/7 to repay huge investment costs.
Case Study 4: Workers in Stanley Black & Decker factory in China work a 10-hour shift operating the assembly line that produces power tools and accessories, lawn and garden tools, cleaning equipment, etc. They can be hired easily and trained to work on the assembly line within a couple of hours.
TIP: Millions of standardized products are produced using mass production and assembled on a large scale thanks to specialization:
- Specialization. Means the division of a large task or project into smaller tasks, allowing individuals to concentrate on an area of expertise. It is an essential part of mass production (flow production).
- Standardization. Means producing an identical or homogeneous product in large quantities such as printing a particular magazine, book or newspaper.
