What is flow production?
Also known as mass production, flow production focuses on rapidly producing a large number of products on a large scale using production line techniques. Workers concentrate on specific steps in the production process, ensuring continuous production in anticipation of future demand.
Example of flow production
Bimbo Canada is a Canadian bakery that has been operating for more than 100 years. It is the largest and oldest bakery in Canada, producing more than 1,000 products across 18 brands, including Dempster's, Stonemill, Villaggio, Vachon, and Takis.
Features of flow production
- Consistent process regardless of the manufactured products
- Enables large volumes of production with lower cycle times
- Increases levels of capacity utilization through continuous production
- Requires a substantial upfront investment in production facilities
Flow production is ideal for businesses that need large volumes produced quickly.
What is continuous production?
Continuous production, often termed process production, is a direct descendant of flow production. In simple terms, this method is employed to process materials without interruptions, ensuring products flow continuously through a linear process autonomously.
Example of continuous production
This approach is prevalent in industries where quality and performance rely on uninterrupted processes, as seen in fossil fuel extraction or water treatment plants. In a continuous water treatment system, wastewater is continually added, while treated water is consistently discharged — maintaining a clean water supply.
Features of continuous production
- Highest level of capacity utilization
- Low unit costs due to high production volume
- Utilized in dedicated plants (such as steel, iron, or chemical) with limited flexibility
- Component materials undergo extensive processing, making the finished product unidentifiable with the source material
- Requires a significant initial investment, leading to limited competition
The production methods covered so far are tailored for large volumes and continuous production. However, if your need is project-dependent, let's delve into custom production.
What is custom production?
Custom production, also known as job production or unit production, involves small manufacturing systems handling custom manufacturing processes. These shops move on to different projects after completing each job, offering a unique mix of skills, processes, machines, and processing flexibility.
Example of custom production
Consider a custom furniture company such as Zenlia Home Store, a luxury furniture store in Woodbridge, Ontario. While the company stocks hundreds of inventory items, it specializes in handcrafted, Canadian-made custom furniture.
Features of custom production
- High flexibility (machines can be added, upgraded, or substituted)
- High production volume elasticity (due to low product volume)
- Low obsolescence (thanks to multi-purpose machines)
- Higher production costs due to specialized labor and product customization
- Requires significant upfront work, slowing down the production process
These manufacturing processes, when coupled with the right business management tools and a focus on lean manufacturing, pave the way for stability and consistent growth, benefiting your company and the industry one customer at a time.
Streamline your production process with QuickBooks
Regardless of the production process, you need tools to enhance operations management. QuickBooks Enterprise for Manufacturing provides essential business management functionality, offering powerful and customizable reporting, automated order creation, and efficient tracking of product movement and storage.
Unlock the tools you need with QuickBooks to help your business thrive. Explore plans now.