Page 213 - Cambridge IGCSE Business Studies

15: Production of goods and services

The most appropriate method of production will depend on:
■ the size of the market
■ the type of good being made.

ACTIVITY 15.4

Clarendon Fashion manufactures women’s clothing. Its large factory is divided into three areas, each of which uses diff erent
methods of production. The company’s main customers are:

■ a large fashion retailer with many outlets in Country Y
■ small independent clothing retailers in Country Y
■ a bespoke service for wedding dresses, which are designed and then produced by the company’s designers following a
meeting with the customer.

1 What are the advantages to Clarendon Fashion of having three different types of customers?
2 What do you think is the main benefit to the company of the bespoke design and production of wedding dresses?
3 Discuss the most appropriate methods of production for each of Clarendon Fashion’s main markets.

TEST YOURSELF

1 State two differences between job production and flow production.
2 State two factors that influence the choice of production method.

211
How technology has changed
production methods

Recently, there has been a move towards more modern production methods. Th ese
‘new’ methods of production combine the advantages of the traditional methods
outlined above, while at the same time avoiding many of their limitations. Th ey
have been influenced by the developments in technology and, in particular, the

development of computer-aided design (CAD), computer-aided manufacturing
(CAM) and computer-integrated manufacturing (CIM).

The use of computers in design has enabled businesses to develop products
much more quickly than in the past. Products can be designed and displayed in
three dimensions (3D) on computer screens. Special computer software can be used

to test different features of the product’s design, for example to check the product’s

safety. Any changes can be easily and quickly made. Being able to design and test

products using computer technology saves the business money. They do not have
to build and rebuild expensive prototypes until they have produced on screen what
EXPLORE! they think is close to the fi nished product.
The development of 3D printers is the latest technology to aid the production

To find out more about the future
of 3D printers in the design and process. For some time these printers have been used to produce prototypes, but

manufacturing process go to the they are now being used to produce finished products in materials such as metals,
following websites: plastic and rubber.
Once a product has been designed and tested it can be produced much more
■ www.youtube.com/
quickly with the aid of computer technologies. In computer-aided manufacturing
watch?v=CP1oBwccARY
(CAM), computers control the machinery and equipment used in the production
■ www.bbc.co.uk/
news/22293523 process. Manufacturing is more capital intensive, which reduces the need for labour
and, therefore, reduces production costs.