{"id":3146,"date":"2023-02-19T16:11:46","date_gmt":"2023-02-19T16:11:46","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/project-or-job-based-production\/"},"modified":"2025-05-27T21:06:01","modified_gmt":"2025-05-27T21:06:01","slug":"project-or-job-based-production","status":"publish","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/project-or-job-based-production\/","title":{"raw":"Learn It 13.2.1: Production Processes","rendered":"Learn It 13.2.1: Production Processes"},"content":{"raw":"<section class=\"textbox learningGoals\">\r\n<ul>\r\n\t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand what operations management is&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:14720,&quot;10&quot;:0,&quot;11&quot;:4,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand what project- or job-based production is<\/span><\/li>\r\n\t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand how operations management functions in the service industry&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:14720,&quot;10&quot;:0,&quot;11&quot;:4,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand the difference between batch production and mass production<\/span><\/li>\r\n<\/ul>\r\n<\/section>\r\n<h2>Managing Production<\/h2>\r\n<p>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.<\/p>\r\n<h2>Project-based Production<\/h2>\r\n\r\n[caption id=\"attachment_12711\" align=\"alignright\" width=\"400\"]<img class=\"wp-image-12711\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/3807\/2018\/11\/16191911\/home-1597079_1920.jpg\" alt=\"decorative image\" width=\"400\" height=\"266\" \/> Figure 1. Custom home construction is typically a project-based production.[\/caption]\r\n\r\n<p><strong>Project or job-based production<\/strong> 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.<\/p>\r\n<p class=\"whitespace-pre-wrap break-words\">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.<\/p>\r\n<p>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.<\/p>\r\n<p class=\"whitespace-pre-wrap break-words\">Common examples of project-based production include:<\/p>\r\n<ul class=\"-mt-1 [li&gt;&amp;]:mt-2 [li&gt;mark&gt;&amp;]:mt-2 list-disc space-y-2 pl-8\">\r\n\t<li class=\"whitespace-normal break-words\">Custom home construction, where each house is designed for a specific client<\/li>\r\n\t<li class=\"whitespace-normal break-words\">Specialized bakeries creating unique special occasion cakes to order<\/li>\r\n\t<li class=\"whitespace-normal break-words\">Custom furniture makers crafting one-of-a-kind pieces<\/li>\r\n\t<li class=\"whitespace-normal break-words\">Shipyards building specialized vessels<\/li>\r\n\t<li class=\"whitespace-normal break-words\">Architecture firms designing unique buildings<\/li>\r\n<\/ul>\r\n<h3>Advantages<\/h3>\r\n<ul>\r\n\t<li class=\"whitespace-normal break-words\">Highly customized products that exactly match customer specifications<\/li>\r\n\t<li class=\"whitespace-normal break-words\">Strong customer satisfaction through direct input and communication<\/li>\r\n\t<li class=\"whitespace-normal break-words\">Higher worker motivation due to varied, challenging work<\/li>\r\n\t<li class=\"whitespace-normal break-words\">Greater worker skill development through diverse projects<\/li>\r\n\t<li class=\"whitespace-normal break-words\">Premium pricing potential due to unique, customized nature<\/li>\r\n\t<li class=\"whitespace-normal break-words\">Flexibility to incorporate changes during production<\/li>\r\n<\/ul>\r\n<h3>Disadvantages<\/h3>\r\n<ul>\r\n\t<li class=\"whitespace-normal break-words\">Higher costs due to specialized labor and materials<\/li>\r\n\t<li class=\"whitespace-normal break-words\">Longer production times compared to batch or mass production<\/li>\r\n\t<li class=\"whitespace-normal break-words\">Limited economies of scale since each item is unique<\/li>\r\n\t<li class=\"whitespace-normal break-words\">Complex project management and resource scheduling<\/li>\r\n\t<li class=\"whitespace-normal break-words\">Higher risk of cost overruns and delays<\/li>\r\n\t<li class=\"whitespace-normal break-words\">Need for specialized equipment that may not be frequently used<\/li>\r\n\t<li class=\"whitespace-normal break-words\">Difficulty in accurately estimating costs and timeframes<\/li>\r\n<\/ul>\r\n<section class=\"textbox tryIt\">[ohm2_question height=\"300\"]4324[\/ohm2_question]<\/section>","rendered":"<section class=\"textbox learningGoals\">\n<ul>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand what operations management is&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:14720,&quot;10&quot;:0,&quot;11&quot;:4,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand what project- or job-based production is<\/span><\/li>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand how operations management functions in the service industry&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:14720,&quot;10&quot;:0,&quot;11&quot;:4,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand the difference between batch production and mass production<\/span><\/li>\n<\/ul>\n<\/section>\n<h2>Managing Production<\/h2>\n<p>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.<\/p>\n<h2>Project-based Production<\/h2>\n<figure id=\"attachment_12711\" aria-describedby=\"caption-attachment-12711\" style=\"width: 400px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-12711\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/3807\/2018\/11\/16191911\/home-1597079_1920.jpg\" alt=\"decorative image\" width=\"400\" height=\"266\" \/><figcaption id=\"caption-attachment-12711\" class=\"wp-caption-text\">Figure 1. Custom home construction is typically a project-based production.<\/figcaption><\/figure>\n<p><strong>Project or job-based production<\/strong> 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&#8217;s needs. This method focuses on customization over quantity, with extensive customer input throughout the production process.<\/p>\n<p class=\"whitespace-pre-wrap break-words\">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.<\/p>\n<p>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.<\/p>\n<p class=\"whitespace-pre-wrap break-words\">Common examples of project-based production include:<\/p>\n<ul class=\"-mt-1 [li&gt;&amp;]:mt-2 [li&gt;mark&gt;&amp;]:mt-2 list-disc space-y-2 pl-8\">\n<li class=\"whitespace-normal break-words\">Custom home construction, where each house is designed for a specific client<\/li>\n<li class=\"whitespace-normal break-words\">Specialized bakeries creating unique special occasion cakes to order<\/li>\n<li class=\"whitespace-normal break-words\">Custom furniture makers crafting one-of-a-kind pieces<\/li>\n<li class=\"whitespace-normal break-words\">Shipyards building specialized vessels<\/li>\n<li class=\"whitespace-normal break-words\">Architecture firms designing unique buildings<\/li>\n<\/ul>\n<h3>Advantages<\/h3>\n<ul>\n<li class=\"whitespace-normal break-words\">Highly customized products that exactly match customer specifications<\/li>\n<li class=\"whitespace-normal break-words\">Strong customer satisfaction through direct input and communication<\/li>\n<li class=\"whitespace-normal break-words\">Higher worker motivation due to varied, challenging work<\/li>\n<li class=\"whitespace-normal break-words\">Greater worker skill development through diverse projects<\/li>\n<li class=\"whitespace-normal break-words\">Premium pricing potential due to unique, customized nature<\/li>\n<li class=\"whitespace-normal break-words\">Flexibility to incorporate changes during production<\/li>\n<\/ul>\n<h3>Disadvantages<\/h3>\n<ul>\n<li class=\"whitespace-normal break-words\">Higher costs due to specialized labor and materials<\/li>\n<li class=\"whitespace-normal break-words\">Longer production times compared to batch or mass production<\/li>\n<li class=\"whitespace-normal break-words\">Limited economies of scale since each item is unique<\/li>\n<li class=\"whitespace-normal break-words\">Complex project management and resource scheduling<\/li>\n<li class=\"whitespace-normal break-words\">Higher risk of cost overruns and delays<\/li>\n<li class=\"whitespace-normal break-words\">Need for specialized equipment that may not be frequently used<\/li>\n<li class=\"whitespace-normal break-words\">Difficulty in accurately estimating costs and timeframes<\/li>\n<\/ul>\n<section class=\"textbox tryIt\"><iframe loading=\"lazy\" id=\"ohm4324\" class=\"resizable\" src=\"https:\/\/ohm.one.lumenlearning.com\/multiembedq.php?id=4324&theme=lumen&iframe_resize_id=ohm4324&source=tnh&show_question_numbers\" width=\"100%\" height=\"300\"><\/iframe><\/section>\n","protected":false},"author":21,"menu_order":7,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Project- or Job-Based Production\",\"author\":\"Linda Williams and Lumen Learning\",\"organization\":\"\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Introduction to 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