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Businesses often use a combination of job production, batch production and flow production. For example, a bakery might use batch production to bake a batch of cakes but then use job production to ice the cakes to each customer’s preferences.

One major reason a business might choose one production process over another relates to productivity. Productivity is a measure of efficiency. It can be measured in products produced per worker, per day, month or year.

A business can improve productivity in various ways:

• Investing in up-to-date machinery – This can help workers to produce more products in the same length of time. It can also reduce the need for employees by replacing them with automated machinery.
• Providing incentives to encourage workers to work harder and faster – There are several ways this can be achieved, such as through promotion opportunities or pay incentives.
• Providing training to staff to improve their skills so they can work more efficiently.
• Encouraging staff to come up with time-saving ideas that allow them to work more efficiently – Many businesses have suggestion boxes where staff can provide ideas on how the business could operate better.

Being more productive enables businesses to keep their costs per unit as low as possible. This means they can price their goods or services more competitively or increase their profit margins.