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Describe the factors to be considered when deciding on a method of production. - Scottish Highers Business Management - Question (c) - 2022

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Describe the factors to be considered when deciding on a method of production.

Worked Solution & Example Answer:Describe the factors to be considered when deciding on a method of production. - Scottish Highers Business Management - Question (c) - 2022

Step 1

Skills of the Workforce

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Answer

The skill level of the workforce is crucial when deciding on a production method. A highly skilled workforce may enable the use of more advanced techniques and equipment, such as automated machinery or specialized manufacturing processes. Conversely, if the workforce lacks necessary skills, simpler or more traditional methods may need to be employed to ensure efficiency and quality.

Step 2

Quantity of the Product

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Answer

The quantity of the product that needs to be made significantly influences the choice of production method. If large quantities are required, mass production methods such as assembly lines may be appropriate to optimize efficiency. On the other hand, for smaller, bespoke production runs, methods such as batch production or job production could be more suitable.

Step 3

Quality Requirements

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The required quality of the product is another factor to consider. High-quality products may necessitate more strict and detailed production processes, potentially involving skilled labor and quality control measures. This may make some production methods, like handcrafting or small-batch production, more appealing for higher-end products.

Step 4

Initial Set-Up Costs

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Answer

Initial set-up costs associated with different production methods can also affect the decision. Some methods require significant capital investment, such as automated machinery, while others may have lower initial costs. A thorough evaluation of available budget and resource allocation is essential before selecting the method of production.

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