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Flashcards in Methods of production Deck (11)
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1
Q

what is the method of production

A

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

2
Q

what are the 2 main methods of production

A

labour intensive

capital intensive

3
Q

what is labour intensive production

A

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

4
Q

what are the reasons orgs use labour intensive

A
  • simple tasks
  • creative tasks
  • personal service

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

5
Q

what are the advantages of labour intensive production

A
  • specific to consumer
  • motivation as not repetitive tasks
  • good quality
  • premium price can be charges
6
Q

what’s the disadvantages of labour intensive

A
  • employee absence
  • higher wages
  • not fast processes
  • costs can be difficult to predict so hard to set a price
7
Q

what is capital intensive production

A

used mainly machinery and uses little workers as prossible

8
Q

examples of capital production

A

oil extraction, manufacturing cars transport-planes, buses

9
Q

what are the advantages of capital intensive production

A
  • 24/7 operations always a large quantity produce
  • machinery is working faster
  • machinery never lose motivation
  • higher wages for specialists
10
Q

what are the disadvantages of capital intensive production

A
  • expensive set up cost
  • can’t be personalised to consumer
  • low worker motivation if job is repetitive
  • breakdowns?
11
Q

what things influence the choice of production method

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