What are the factors that must be considered by a firm before changing from a batch to a flow method of production.
There are three different types of production methods; job, batch and flow production. If a firm is considering changing its batch to a flow method, it must keep various factors in mind before doing this. The change from batch to flow requires investing in new capital so the financial, marketing, HR and operations department all play an important role in this decision.
First of all a company will have to decide if there is enough demand for the flow method of production. The demand can increase for various reasons, there may be a boom in the economy, the company may be targeting a larger segment now, it may be going from a niche to mass market and the product may be gaining popular appeal. The company will have to see whether the type of product is one where standardization will work, or whether providing customization and variety is the essence and charm of the product. For example if a company like Abercrombie & Fitch starts mass production of its clothes, it would not appeal to its present customers anymore who prefer its exclusivity.