Production Methods Flashcards
What are the production methods?
Labour intensive -large proportion of human input Capital intensive -relies on machinery Automation -machinery completely replaces labour Mechanisation -a mix of labour and machine
Labour intensive advantages?
Cheaper as they don’t have to buy expensive machinery
Products can be specialised to customer needs
Employees have greater job satisfaction as they can use their own skills
Labour intensive disadvantages?
Higher staff wages
Costly to recruit and train employment
Production is harmed if staff member is absent
Accuracy and quality can vary
Capital intensive advantages?
Large volume of identical products made t more economical cost
Machinery can work 24/7
Quality and accuracy will be standardised
Capital intensive disadvantages?
Individual requirements can’t be made
Breakdowns can be costly
Employees have a lack of motivation
Automation advantages?
Production time is quicker
Accuracy is greater and consistent
No workers so saves on staff wages
Automation disadvantages?
No flexibility as computer only does what it’s programmed to
Breakdowns are costly
Increase in unemployment
Mechanisation advantages?
Machinery improved accuracy and completed difficult tasks
Labour trained in operating machinery
Labour allows production issues to be flagged immediately
Mechanisation disadvantages?
Initial set up costs are high
Breakdowns are costly
Expensive to update and upgrade machinery
Costly to train staff
What to consider when choosing which production method?
Quantity to be made Skills of staff Equipment required Type of product Finance available