Operation Management- Labour or capital

Question 1

Labor intensive

Answer 1

This is where the Production is mainly based labour on input rather than capital esquipamentos

Usually used for effective marketing as it is Hand made

For example Austin Marin

Question 2

Advantages of layout intensive

Answer 2

1. Since it is being made by human it has ability to respond to consumer demands and who customers needs and wants are changing.
   Personal touch
2. Provides feedback to workers so they can improve but also be shown on how well they are doing. Improved motivation
3. Workers can substitute machine

Question 3

Disadvantages of labour input

Answer 3

1. It is very expensive to maintain labour due to all salaries and have higher per unit costs.
2. Employee performance may affect levels of work
3. Labour relation problems if going on strike

Question 4

Capital intensive

Answer 4

Involving high quantity of capital input than labour output

Question 5

Advantages of capital

Answer 5

1. Human error reduced hence more accuracy
2. Economies of scale as perhaps may produce more and reduce about of buying hence reducing cost per unit
3. No real problem with labour shortages or planning as machinery is always there and ready to be used

Question 6

Disadvantages of capital

Answer 6

1. Large capital investment required and need more retraining for employees in order to know how to use machinery
2. Lack of flexibility as no capability of responding to consumer demands or providing personal touch
3. Lack of initiative as no feed back so no new ideas being produced from employees side