35) Methods Of Production Flashcards
What is capital intensive production?
Machines to most of the work
Businesses using this often produce items which are very similar
Large-scale production
Easier to produce by machine
What is labour-intensive production?
Where companies use humans rather than missionary to produce good particularly where a single product is being produced that requires craftsmanship a special expertise
What are the advantages of labour intensive production?
Some manual labour is cheap to imply, some workers are highly skilled our offer expect craftsmanship, labour can be more suitable when the business cannot finance expensive machinery
What are the disadvantages of labour intensive production?
Skilled labour can be expensive to pay and train, staff absence could mean production stops, only suitable for small-scale production
Advantages of capital intensive production
Machines are more efficient for a standard product, machines are less expensive after initial payment, they are suitable for large-scale production
Disadvantages of capital intensive production
Purchase, set up costs and maintenance can be expensive, machine failure can lose production, individual customer specifications cannot be met
What is job production?
Where a single product is custom made to the customers own specification
What are the advantages of job production?
Firms come for just one off order to meet the customers exact needs, high prices can be charged, workers are more motivated
Disadvantages of job production
It’s expensive, expensive to send equipment may be required, can take a long time
What is batch production?
The production of groups of similar products
What are the advantages of batch production?
All products in the batch identical, there is a reduced need for highly skilled and costly stuff, machines and robots can be used
Disadvantages of batch production
Staff can be less motivated, expensive machinery
What is flow production?
A process in which the production of items must continuously from one operation to the next
What are the advantages of flow production?
Huge quantities of goods can be produced, machinery can work 24 seven, machines and robots reduce labour costs and human mistakes, costs can be spread over a greater output reducing the cost for the customer
Disadvantages of flow production
Very expensive to purchase machinery and equipment, individual customer requirements cannot be met, workers become bored, production has to stop if machines develop fault
