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The advantage of discrete manufacturing is that the process is often quite flexible. This means that a manufacturer can often handle both an increase in demand and a decrease in demand by adapting its output to suit. This includes that there is generally only a minor increase in the cost per unit if less items are produced. Another advantage is that any error in the production process that damages the product will typically only damage one or a few products.
The main disadvantage to process manufacturing is that any error that damages the product, damages the entire batch of product. This will typically cause a significant loss to the organization. The loss can be even greater if the raw materials for the process are limited. For example, consider an organization that produces coffee by processing coffee beans. If the coffee beans are a limited resource, a damaged batch of coffee may not be able to be replaced. This can create significant issues if the organization is not able to meet its demand, including potentially losing customers and wholesalers....
Another disadvantage for process manufacturing is that the output may not be able to be varied easily as it is for discrete manufacturing. One of the main advantages of process manufacturing is that there is generally a lower cost to producing the products. This occurs because final products are produced on a larger scale. This typically requires fewer resources and also allows for bulk savings. Another advantage is that ensuring the quality of the final product is generally easier since quality can be tested while the product is in its bulk state. Since the production process normally occurs as one ongoing process, it is also typically easier to manage process manufacturing.
References
Piasecki, D.J. (2003). Inventory Accuracy: People, Process, & Technology. Kenosha, WI: Ops Publishing.
Brandimarte, P., & Agostino, V. (1995). Optimization Models and Concepts in Production Management. London: CRC Press.
Schermerhorn, J.R. (1989). Management for Productivity. New York: John Wiley & Sons.
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