methods of production Flashcards
capital intensive meaning
Products made using machinery. Can be fully automated (automation) or a mix between human and machinery (mechanisation).
capital intensive
advantages
- Machines can work 24/7 without the need for breaks
- Machines can produce a consistent and standardised accuracy and quality of work
capital intensive
disadvantages
- Individual customer requirements cannot be met
- Breakdowns can occur which can be expensive
- Employees become tired and bored of repetitive tasks that might need to be carried out
mechanised production
capital intensive
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.
automated production
capital intensive
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.
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.
labour intensive production
advantages
- Employees can use their initiative when required
- There is always a supply of labour available
- Cheaper than purchasing and maintain equipment
labour intensive production
disadvantages
- It costs money to recruit, select and train new employees
- The accuracy and the quality of work from person to person can vary
reasons for production choices
- The actual product being made
- The quantity of the product that needs to be made
- The way the business will make sure the product is of a high quality
- The way stock is managed
- The resources available (eg staff and machinery)
- The method of distribution
- The technology available