IBDP Business Management Operation Management Chapter 2 Notes

production methods

STUDY NOTES FOR BUSINESS MANAGEMENT – OPERATION MANAGEMENT CHAPTER 2 – PRODUCTION METHODS

These notes have specially been curated by expert teachers to simplify and enlighten concepts given in IB Business Management HL. The notes are comprehensive in nature and are sufficient to study the chapter in depth, One need not look for other resources beyond the notes provided on our website which can be accessed for free.

Business management IBDP is a part of group 3 Individuals and the Society of the IB curriculum. The IBDP Business Management course has been devised for imparting knowledge and understanding of different theories of Business Management and application of various tools and methods. It enables the students to analyze and evaluate business activities at all levels- local, national, or international, It also helps in developing holistic understanding of the business environment today which is complex and fast changing.

The subject covers important characteristic of business organization and business functions of human resource management, finance and accounting, marketing, and operations management. The purpose of the course is to help students develop skills that enable them to think critically and make the right decisions after carefully evaluating and analyzing the issue at hand. It also aims at developing the understanding of the importance of innovation and exploring business from different cultural perspectives.

The chapter on Production Methods begins with the different types of production methods like job production, batch production, flow production, mass production, and cellular production. Job production is the method used for producing one-off items to meet the specific requirements of the customers. For example, wedding rings, furniture, etc. Batch production is when products that are identical are manufactured in the batch, for example jewelry. Flow production consists of the products that are made in huge quantities where the process of production is the same for all the products.


Mass production and flow production are similar but differ in the use of machinery where mass production uses special equipment and the cost of production decreases as compared to flow production, for example manufacturing automobiles. Cellular production is a method used as a replacement for mass and flow production methods. Here the product is assembled and produced in a large quantity. Finally, the chapter explains methods to determine which method of production to adopt depending on the size of the market, the cost of capital and labor and the objectives of the organization.