Analyse the benefits of adopting a flow production system
Flow production refers to when a business uses machinery to produce mass quantities of identical products in a continuous process where they pass from one stage on production to the next.
One benefit is that it reduces the cost per unit for products. Flow production requires high quantities of raw materials to be available continuously. Therefore, a business is likely to buy raw materials in bulk and benefit from purchasing economies. The reduced cost of raw materials will directly reduce the variable cost of the product, and so reducing its cost per unit.
Another benefit is that it produces productes of identical quality. This means that the business is able to reliably fulfill its promise to customers, keep a consistent brand image, as well as minimise poor quality related complaints. This is because flow production relies on machinery, so the chance of a human error and quality defects is fairly low.
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