methods of production Flashcards
1
Q
capital intensive
A
Capital intensive production is when products are mainly produced by machines and robots.
1
Q
labour intensive
A
Labour intensive production is when products are mainly produced by human workers.
2
Q
Advantages of labour intensive production
A
- customised products are easier to make
- humans can use their initiative
- higher prices can be charged
- more motivating as it is less repetitive
3
Q
Disadvantages of labour intensive production
A
- quality can vary due to human error
- skilled workers take time to train
- skilled workers will be paid more
4
Q
outsourcing
A
Outsourcing involves getting another business or organisation to provide a process or service rather than doing it themselves.
4
Q
Describe advantages of capital intensive production methods.
A
- 24/7 operation is possible
- products can be mass produced
- machinery provides consistent quality
- robots can do work which is repetitive
5
Q
Describe disadvantages of capital intensive production methods.
A
- involves large set-up costs
- breakdowns in production can be catastrophic
- more difficult to customise orders
- expensive to maintain technology
6
Q
benefits of outsourcing
A
- fewer employees required
- can improve the quality
- allows the organisation to focus on core activities
7
Q
drawbacks of outsourcing
A
- the supplier could increase costs
- loss of control may result in quality issues
- possibly locked into expensive contracts
