methods of production 3 Flashcards
1
Q
what is labor-intensive production and capital-intensive production?
A
labor-intensive production - mainly humans
capital-intensive production - mainly machines
2
Q
overall
A
- increased productivity = greater efficiency = greater profit
BUT - the need for:
- quality goods/service
- controlled costs
- effective marketing to create demand
- productivity and efficiency are normally a greater priority in manufacturing/ mass production where improvements can have a significant impact on costs/profits
3
Q
factors influencing productivity
A
- employee training
+ they become more effective/quicker
- cost, time away from the job - motivation for staff
+ increased speed of work
- costs, can lead to demotivation and quality can be sacrificed - better quality raw materials
+ less waste of rejected products
+ investment in new technology
- costs likely to rise - improved organization of production
+ increased speed, less wastage
- short term disruption to production
4
Q
pros and cons of labour intensive
A
pros
- continious improvement = training
- unit costs may be low = low skilled
cons
- training costs
- ansenteeism/ labour turnover
- greater risk of problems with employee/employer relationship
5
Q
pros and cons of capital intensive
A
pros
- eos
- higher productivity
- better quality
- consistent
cons
- inc costs = updates and maintenance
- resistenace to chnage from workforce
- reduced competitiveness due to obsolescence
