topic 18 - methods of production Flashcards
describe capital-intensive production
this involes producing products primarily by means of machinery and equipment. Capital-intensive production can utilise either automation or mechanisation.
describe automation
this refers to production being fully automatic. This involves the use of Computer Aided Manufacture (CAM) to control fully automated assembly lines that use robotics.
advantages of automation
- CAM/robotics produce products in exactly the same way every time, improving consistency.
- CAM doesn’t lose concentration so fewer mistakes are made, which limits waste.
- robots can do jobs that are dangerous for humans to do.
- robots don’t take breaks, holidays or sick leave so can work 24/7.
- fewer employees are needed as automation doesn’t require human control, reducing wage costs.
disadvantages of automation
- huge investment is needed to automate a production line.
- breakdowns can be catastrophic, losing hours of production time and wasting vast amounts of materials.
- replacing labour with automated robotics will demotivate retained employees.
- absence of a ‘human touch’ often leads to lack of creativity and personality in the products produced.
describe mechanisation
this refers to labour and machines working together to produce products. A tradition example is a machinist operating a sewing machine in a textile factory.
advantages of mechanisation
- using machinery improves accuracy over purely handmade products as human error is lessend.
- using machinery can speed up production.
- unlike automation, a human element exisrs in mechanisation, improving creativity.
disadvantages of mechanisation
- the machines and equipment can’t be used without humans, so are liable to some human error.
- production can’t be 24/7 as humans require breaks, holidays and so on.
- if machinery breaks down, the business has to repair it, leaving workers idle.
describe labour intensive production
this involves humans doing most of the work. This is most common in job production, for example, skilled hand-crafts, such as cake decorating.
advantages of labour-intensive production
- labour can be less expensive than capital-intensive production.
- humans can use initiative and creativity, something that is often lacking in automated systems.
- theres a constant supply of labour, often skilled labour, available in areas of the country with manufacturing traditions.
- employees are motivated as they are not ‘giving up’ tasks to machines.
disadvantages of labour-intensive production
- the business is at high risk of human error, resulting in waste, faulty products and disgruntled customers.
- humans have to take breaks, holidays, etc, which limits production time.
- humans have to be paid overtime for working over normal hours whereas machines cost the same at any time of day.
- recruitment, training and wage costs need to be considered.
describe the reasons for production choices
quantity of goods required - if large quantities are required, capital-intensive production will be more suitable than labour-intensive.
skills of the workforce - if the workforce is highly skilled, their expertise would be better suited to labour-intensive production.
cost of labour - rising labour costs (perhaps due to a rising minimum wage) could mean that the business should move to capital-intensive production.
finance available - large amounts of finance are required to equip factories or hire the number of staff needed for large-scale capital-intensive production.
technology available - if the business doesn’t have the technology required for capital-intensive production, labour-intensive is the only option.