• Understand what project- or job-based production is
• Understand the difference between batch production and mass production

Managing Production

Businesses know what they want to produce, but the challenge is to select a process that will maximize the productivity and efficiency of production. Senior management looks to their operations managers to inform this decision. As we examine the four major types of production processes, keep in mind that the most successful organizations are those that have their process and product aligned.

Project-based Production

Project or job-based production is a manufacturing method where unique, customized items are produced one at a time. Each product is specifically designed and created for an individual customer’s needs. This method focuses on customization over quantity, with extensive customer input throughout the production process.

In project-based production, work is organized around the specific requirements of each project. The production team, typically consisting of highly skilled specialists, works collaboratively to create a single product from start to finish. Customer communication is essential, with frequent consultation and feedback throughout the process to ensure the final product meets exact specifications.

Some types of service businesses also deliver customized services. Doctors, for instance, must consider the illnesses and circumstances of each individual patient before developing a customized treatment plan. Real estate agents may develop a customized service plan for each customer based on the type of house the person is selling or wants to buy. A hair stylist gives each client a personalized hair cut.

Common examples of project-based production include:

• Custom home construction, where each house is designed for a specific client
• Specialized bakeries creating unique special occasion cakes to order
• Custom furniture makers crafting one-of-a-kind pieces
• Shipyards building specialized vessels
• Architecture firms designing unique buildings

Advantages

• Highly customized products that exactly match customer specifications
• Strong customer satisfaction through direct input and communication
• Higher worker motivation due to varied, challenging work
• Greater worker skill development through diverse projects
• Premium pricing potential due to unique, customized nature
• Flexibility to incorporate changes during production

Disadvantages

• Higher costs due to specialized labor and materials
• Longer production times compared to batch or mass production
• Limited economies of scale since each item is unique
• Complex project management and resource scheduling
• Higher risk of cost overruns and delays
• Need for specialized equipment that may not be frequently used
• Difficulty in accurately estimating costs and timeframes