Project or job-based production is one-of-a-kind production in which only one type of item is manufactured at a time. This type of production is often used for very large projects or for individual customers. Because the customer’s needs and preferences play such a decisive role in the final output, it’s essential for the operations manager to maintain open and frequent communication with that customer. The workers involved in this type of production are highly skilled or specialists in their field.

The following are examples of project or job-based production:

• custom home construction
• haircuts
• yachts

Consider the home in which you live. When the house was built, the contractor used a job process, and highly skilled workers were brought in to install the plumbing, heating, and electrical systems.

Some types of service businesses also deliver customized services. Doctors, for instance, must consider the illnesses and circumstances of each individual patient before developing a customized treatment plan. Real estate agents may develop a customized service plan for each customer based on the type of house the person is selling or wants to buy.

Advantages

• Unique, high quality products are made.
• Workers are often more motivated and take pride in their work.
• Products are made according to individual customer needs and improve customer satisfaction.
• Production is easy to organize.

Disadvantages

• Very labor-intensive, so selling prices are usually higher.
• Production can take a long time and can have higher production cost, (e.g., if special materials or tools are required).