Operations

Question 1

What is capital intensive

Answer 1

Products made using mainly machinery and equipment

Question 2

What is it called when products are made using a mixture of both humans and machines

Answer 2

Mechanisation

Question 3

What is it called when products are made using only machinery

Answer 3

Automation

Question 4

Advantages of capital intensive

Answer 4

• can work 24/7
• product will be of consistent quality
• unskilled employees required (cheaper labour)

Question 5

Disadvantages of capital intensive

Answer 5

• expensive to purchase
• can’t meet individual customer requirements
• breakdowns cause production to stop