Methods of Production Flashcards
What are the 2 methods of production?
Capital intensive production and labour intensive production
What is capital intensive production?
This refers to producing products that mostly utilise machinery and equipment
What are examples of capital intensive production?
Automation (robotics) ans Machanisation
What is automation?
This involved teh use of CAM (computer aided manufacture) and is fully automatic so controlled by robots
What are advantages of automamtion?
- Robots don’t need breaks
- Fewer employees required
- CAM/robotics are consistant and produce products the exact same way every time
What are disadvantages of automation?
- High investment costs
- Lack of creativity compared to labour intensive
- Breakdowns can be very costly
What is mechanisation?
This involved teh use of machines and humans working together
What are advantages of mechanisation?
- Machinery improves accuracy so less human error
- Machinery can speed up the process
- A human element exists increasing creativity
What are disadvantages of mechanisation?
- Machinery and equipment cant be used without humans so are liable for human error
- Production cant be 24/7
- If machinery breaks down the business must repair it and employees are still paid while idle
What is labour intensive production?
This is when humans do most of the work
What are advantages of labour intensive production?
- Employees are motivated because they are heavily involved in production
- Humans can use initiative and creativity
- Good supply of labour in certain areas of the country
What are disadvantages of labour intensive production?
- Humans have to take breaks
- High risk of human error
- Recruitemnt, training and wages leads to high costs
What are factors affecting methods of production?
- The quality of the good
- The skill of the workforce
- The costs of labour
- The finance available in the organisation
- The technology available in the organisation
