methods of production

Question 1

what is labour intensive production?

Answer 1

when products are mainly produced by human workers however machines and special tools may be used too, but overall it requires human creativity and effort to produce the product

Question 2

what are five advantages of labour intensive production?

Answer 2

• customised products are easier to make
• humans can use their own initiative and problem solve
• higher prices can be charged
• the product can be altered during production process
• can be more motivating as the product changes/less repetitive

Question 3

what are four disadvantages of labour intensive production?

Answer 3

• quality of products can vary due to expertise of the worker and there is increased risk of human error
• skilled workers take time to train
• skilled workers will be paid more than unskilled workers
• workers require breaks and holidays which may lead to loss of production

Question 4

what is capital intensive production?

Answer 4

when products are mainly produced by machines and robots

Question 5

what are five advantages of capital intensive production?

Answer 5

• 24/7 operation possible/no need for breaks.
• Products can be mass produced.
• Reduces labour costs since fewer workers are required.
• Fewer mistakes/flaws/consistent quality so less returns/customer complaints
• Robots can do work which is repetitive and demotivating for humans

Question 6

what are three disadvantages of capital intensive production?

Answer 6

• Breakdowns in production can be catastrophic to cash flow and profits.
• Money is required for improving/maintaining technology.
• More difficult to customise orders

Question 7

what are three methods of production and what do they involve?

Answer 7

• job production: involves producing custom work such as a one-off product for a specific customer
• batch production: method of manufacturing where identical or similar items are produced together for different sized production runs
• flow production: used for producing a large number of identical products

Question 8

what are four advantages of job production?

Answer 8

• High quality products due to small-scale and focused production
• Personalised products can result in more revenues and greater customer satisfaction
• Higher job satisfaction due to employees’ strong commitment to the product
• More flexibility compared to mass/flow production methods

Question 9

what are four disadvantages of job production?

Answer 9

• Manufacturers usually pay higher wage costs for skilled workers
• Job production can take up a lot of time and resources
• Specialised machines may be needed for complex items adding to the cost
• Consumers have to pay higher fees for personalised products

Question 10

what are four advantages of batch production?

Answer 10

• Batch is suited to dynamic markets (quickly changing), as the product can be changed or altered to better suit the changing consumer demands, means the business is less likely to lose sales to competitors.
• Machinery required for batch production is often cheaper than the complex, mass-scale equipment required to carry out flow production
• Compared with mass/flow production, goods can be produced in smaller quantities, making the manufacturer’s overall process more agile and efficient.
• Varying products means the manufacturer is reducing its risk rather than concentrating on a single item that might go out of demand

Question 11

what are two disadvantages of batch production?

Answer 11

• When compared to mass/flow production, batch production can be more expensive because there are usually more stages to the manufacturing process
• When goods are being produced in a series of steps, production can take longer. Production cannot move onto the next stage until every item in the batch is ready so there can be delays and down time in production. This is especially true if alterations to machinery need to be made before production can continue

Question 12

what are four advantages of flow production?

Answer 12

• Flow (or mass) production lowers the cost-per-unit as the business can access economies of scale. This results in lower unit costs and higher profit margins.
• There is no lag time whilst the machines are being reloaded/reset for different products, as in batch production.
• As items move along a continuous flow of automated machines the product can be delivered more quickly, which improves customer satisfaction.
• Since the flow production is mostly automated businesses don’t need to hire high-skill labour to operate the system.

Question 13

what are four disadvantages of flow production?

Answer 13

• Set-up costs are high since they involve buying and installing specialised machines and creating new production programmes.
• Machines in flow production are expensive to buy and set up and they perform only one function
• If one station breaks down, the whole assembly line will stop as well
• Factory workers may feel demotivated doing the same work every day