Batch Production

Batch production is a manufacturing technique used to produce goods in groups or quantities rather than in a continuous stream. This method is particularly advantageous for industries that require flexibility, such as pharmaceuticals and food and beverage, where products can be manufactured in smaller, repeated sets. In batch production, items undergo various production steps before moving on to the next phase, allowing for efficiencies and the ability to customize products as needed.

While batch production reduces unit costs and accommodates a range of product variations, it does have drawbacks, including idle time during equipment reconfiguration and higher storage costs for finished goods. The process also necessitates careful management to minimize waste and maximize productivity. Strategies such as lean manufacturing and Kaizen are often implemented to address inefficiencies within batch production, focusing on reducing downtime and enhancing workflow.

Despite its limitations, batch production remains a preferred method in many sectors due to its ability to handle diverse orders and adjust to market demands effectively. Understanding the balance between efficiency and flexibility is crucial for manufacturers employing this production style.

Published in: 2021

By: McBroom, Mandy M., MPH

Subject Terms

Batch Production

Abstract

The manufacturing industry selects from a variety of production techniques based on the optimal process that will be easily streamlined, implemented, and sustained in order to generate the most product in a timely fashion. Batch production is preferred when there are smaller batches of product to produce or when large quantities of product must be produced in a multi-step process that cannot be a continuous flow process. Batch production is the popular choice of production in the pharmaceutical industries, as well as some food and beverage industries.

Overview

One of the most challenging and important steps to optimizing manufacturing is the selection of the production process used to make a certain product. While some businesses only offer one type of product or service, others diversify to improve profits. It is very important to identify the right process to ensure minimal waste and error and to maximize efficiency. In general, there are three basic types of manufacturing processes: job production (one-off), continuous production (a type of flow production), and batch production. Batch processing is an automated process that is typically used for production of large amounts of product. The process is designed to mass produce product to a certain step or phase; then the next step of the process is implemented. Once the process is underway, there is no need for user interaction.

Batch production is generally used for processes that are identical and do not require specified changes within a product (i.e., manual steps). This production type is commonly used for manufacturing items such as baked goods, shoes, pharmaceutical components, ink, adhesives. It is also used for batching computer tasks and generating monthly reports for a business, such as payrolls and financial summaries.

Advantages of batch production are that making products in batches reduces unit costs, can be calibrated to address different variations of a product, and utilizes specialist machinery and skills to increase output and productivity. Though it might seem that batch processing is limiting, it actually gives the manufacturer the ability to offer customers a wide variety of choices. It works well when small production runs are needed, such as individual sandwich shops baking select cookies for a day. It is ideal for custom or seasonal orders or trial runs of a new product. It also reduces inventory.

The main disadvantage of batch processing is that there is a period of time during which the machinery is being reconfigured and its output tested before the next batch can be produced. This causes productivity to halt and can result in idle workers, which is wasteful for a company and can demotivate staff. Also, production equipment uses a lot of space. Equipment not in use is viewed as a loss in revenue. Labor is required to move items from one stage of the batch process to another. When using batch production for data processing, the inputs for processing must be correct or else the results of the whole batch will be faulty, which costs time and money. Storage costs are much higher for batch produced products.

Further Insights

Methods have emerged to address specific issues with production, including batch production, to reduce downtime and waste while simultaneously increasing efficiency. An area of batch production that is susceptible to wasted time and money is the idle time between batches, called cycle time. Lean manufacturing is a systematic method for reducing waste. The goal is to reduce waste without sacrificing productivity. It works from the perspective of what adds value for a customer. This management philosophy was derived from the Toyota Production System (TPS) in the 1990s. Though the system still uses car manufacturing terminology, the basic tenets are taken and used in any waste reduction undertaking. When properly implemented, lean manufacturing provides many advantages, which include improving flow and eliminating waste.

Lean manufacturing minimizes the time lost to setup and change-over for cycle time to be reduced. This can be accomplished by performing as much of the change-over work as possible before the down-time occurs. Toyota reduced their change-out metal stamping dies used for making car bodies from three days to ten minutes. In addition, with the time left over after cycle time has been minimized, staff can be moved to different tasks, which further reduces wasted resources. This helps staff stay motivated and moves other processes along in a more efficient manner. Staff can be placed in different stations or moved to areas that need to be reorganized and cleaned.

Another area where waste can be minimized is through scrutinization of product being produced, for example, whether the variety of goods being produced through small batch method are actually needed. It is important to identify those products that are selling and eliminate those that do not sell well enough to justify the cost of their production. If it is necessary to continue all versions of product or line, then extending turnaround time for lower selling items could allow for more orders per batch processed. Additionally, for unique products, it might be possible to charge more if the demand is high enough.

Similarly, another method that considers wasted resources is process value analysis. This method considers not only time wasted in unnecessary processes but also expenses experienced through the value chain used to acquire a good or service. Essentially, any steps or processes that take away from the value savings of a process are scrutinized and eliminated, if possible. Control points are one target of process value analysis. These are processes that occur between batches, as well as other areas of the batch production. While it is unlikely that some streamlined processes can be changed, all potential areas of weakness are evaluated for elimination or change. This is used as a component of the total production maintenance process.

Kaizen is a continuous improvement model designed by the Toyota company to address company-wide quality improvement. It involves looking at everyday improvement opportunities and deciding, as a group, the best outcome, whether to omit the process or alter it in a way that it promotes profit instead of loss. Many manufacturing companies employ Kaizen methods, including 5S (sort, set in order, shine, standardize, and sustain), which involves all employees. Kaizen is typically integrated with lean manufacturing and process value analysis to promote an overall improvement in waste reduction, streamlining of processes, and employee satisfaction.

In one example of process value analysis and lean manufacturing used together, an engineer and his team were tasked with reducing cycle time on the production of a medical product at a pharmaceutical company (Bevilacqua, Ciarapica, De Sanctis, Mazzuto & Parciarotti, 2015). The team utilized the expertise of other workers in the company, who could offer insight into individual aspects of the process. A new production design was arrived at, using a single room and off-the-shelf equipment for production with continuous flow process. The process time needed to complete the production was decreased from three days to six hours. Each step of production was reduced to below 50 percent of the previous production design. This 50 percent reduction in steps demonstrates the power and costs that applying quality improvement designs can have on batch production or continuous production processes.

Issues

Lean manufacturing and other continuous improvement processes, such as Kaizen, are not easily applied in some batch production industries. This is particularly true in the food and beverage industries. One of the reasons Kaizen is difficult to implement is that product is made to sell in bulk and the lead time is long. This creates gaps in forecasts that guide production versus actual demand. It also causes large inventory holdings. Long storage times are not ideal for products with short shelf-lives. Outside of these production-dependent issues, it is also difficult to implement because it is difficult to bring widespread changes to a work group. This can apply to management as well as floor workers. However, Kaizen philosophy suggests utilizing human resources that are amenable to change will eventually lead to efficiencies in processes. Once those who resist see that improvements are being made, they are more likely to adapt to new routines and practices.

Batch processing contrasts with other forms of manufacturing such as continuous processing, a type of flow production, and job production. Job production is the simplest type of production, requiring the worker to acquire materials and other components to produce a single product. This is the most time-consuming form of production. An example of this would be hand-crafted jewelry. Continuous production is used more often when large quantities of an in-demand product needs to be constantly made. There is no interruption of production flow.

Though batch processing is still the preferred method in the pharmaceutical industry, because of its greater potential for cost savings, continuous production is considered a better alternative for exerting more precise control over chemical reaction processes that need to be produced in large quantities. It is particularly useful when handling hazardous materials. It has the potential to reduce costs by running all day until the project is complete, without the sacrifice of cycle time. It is also capable of maximizing throughput, as well as reduce the likelihood of batch dumping if an error occurs. Most pharmaceutical companies still rely on batch production despite the potential cost and quality benefits of continuous processing. The cost of buying and installing suitable equipment means that there is a widespread reluctance to be the first to adopt these technologies. There is also less regulatory guidance for continuous production in the pharmaceutical industry.

Terms & Concepts

5S: A method of workplace organization that uses five principles: sort, set in order, shine, standardize, and sustain. These items target areas that are usually easily improved, but often go underappreciated in terms of impact for quality and process improvement. This process has expanded from manufacturing to include health care, education, and even government processes.

Batch Processing: A method of production that utilizes mass production for tasks that are able to process without end user interaction or are able to be scheduled. These tasks are usually processed on an as-needed basis.

Continuous Production: A type of flow production that allows for a seamless production of a product. Unlike batch production, there are no interruptions for the production cycle. Each item in the group of product is identically and precisely created.

Cycle Time: The period of time between batches that is used to quality check product and change out equipment or supplies to move to the next batch process.

Kaizen: A continuous improvement process developed in Japan. It was first developed by the Toyota company to make small, daily improvements in all areas of a company. It uses the 5S system of improvement to target areas that are easily identified and involves all employees of a company.

Lean Manufacturing: The method of streamlining a production system to eliminate production waste in the forms of time, storage, and product. It evaluates areas of waste and seeks to optimize cycle times and personnel utilization.

Process Value Analysis: The examination of an internal process that businesses undertake to determine if it can be streamlined.

Total Productive Maintenance: The method of strengthening manufacturing processes. It addresses performance and quality of a process to streamline without compromising integrity of the system. It is executed by special internal teams assigned for the purpose or by consultants.

Bibliography

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Batch Production

On this Page

Subject Terms

Batch Production

Abstract

Overview

Further Insights

Issues

Terms & Concepts

Bibliography

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