Methods of production

Question 1

what is the method of production

Answer 1

it is the way the org chooses to organise the resources to make a product

Question 2

what are the 2 main methods of production

Answer 2

labour intensive

capital intensive

Question 3

what is labour intensive production

Answer 3

mainly human effort. tasks are complete by hand so many workers are employed

Question 4

what are the reasons orgs use labour intensive

Answer 4

• simple tasks
• creative tasks
• personal service

e.g. food processing, hotels, fruit picking, hairdressing

Question 5

what are the advantages of labour intensive production

Answer 5

• specific to consumer
• motivation as not repetitive tasks
• good quality
• premium price can be charges

Question 6

what’s the disadvantages of labour intensive

Answer 6

• employee absence
• higher wages
• not fast processes
• costs can be difficult to predict so hard to set a price

Question 7

what is capital intensive production

Answer 7

used mainly machinery and uses little workers as prossible

Question 8

examples of capital production

Answer 8

oil extraction, manufacturing cars transport-planes, buses

Question 9

what are the advantages of capital intensive production

Answer 9

• 24/7 operations always a large quantity produce
• machinery is working faster
• machinery never lose motivation
• higher wages for specialists

Question 10

what are the disadvantages of capital intensive production

Answer 10

• expensive set up cost
• can’t be personalised to consumer
• low worker motivation if job is repetitive
• breakdowns?

Question 11

what things influence the choice of production method

Answer 11

• size of product
• amount of consumers
• finance available
• does the skilled staff exist