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Flashcards in Methods of production Deck (11)
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1

what is the method of production

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

2

what are the 2 main methods of production

labour intensive
capital intensive

3

what is labour intensive production

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

4

what are the reasons orgs use labour intensive

-simple tasks
-creative tasks
-personal service

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

5

what are the advantages of labour intensive production

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

6

what’s the disadvantages of labour intensive

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

7

what is capital intensive production

used mainly machinery and uses little workers as prossible

8

examples of capital production

oil extraction, manufacturing cars transport-planes, buses

9

what are the advantages of capital intensive production

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

10

what are the disadvantages of capital intensive production

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

11

what things influence the choice of production method

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