labour and capital intensive production Flashcards
what is capital intensive production?
• when products are mainly produced by machines and robots, meaning the initial outlay and maintenance, will be very high. Capital intensive production can be either mechanised or automated
what is mechanised production?
• Mechanised production is when the production process requires both machinery and humans. Machines are required to carry out most of the work although they are operated and controlled by humans.
what is automated production?
• Automated productions is when the production process is mainly carried out by machinery/robots and is mostly controlled by computers. Human input is limited in automated production.
what are 5 advantages of capital intensive production?
• less employee wages and costs
• quality can be standardised, the same every time
• machines can work continuously, 24/7 meaning products are produced quicker
• machines can carry our dangerous tasks which will reduce accidents
• machines can carry out repetitive tasks that humans w find boring
what are 4 disadvantages of capital intensive production?
• employees will become demotivated
• initial set up costs of machinery are high
• breakdowns in production can be costly
• more difficult to customise orders
what is labour intensive production?
• Labour intensive is when products are mainly produced by human workers. Machines and special tools may be used too, but overall it requires human creativity and effort to produce the product.
what are 4 advantages of labour intensive production?
• customised products are easier to make
• less expensive machinery costs
• humans can use their own initiative and problem solve
• workers ar often more motivated
what are 4 disadvantages of labour intensive production?
• workers require breaks and holidays which may lead to loss of production
• skilled workers will be paid more than unskilled workers
• skillets workers take time to train
• quality of oducts can vary due to expertise of the worker and there is increased risk of human error