ECONOMICS
PRODUCTIVITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A greater need for labour skills
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Workers can work on any part of the assembly line
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High volume of products are produced
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Economies of scale mean products are more expensive
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Detailed explanation-1: -The advantage of this is that a high number of products can roll off assembly lines at very low cost. This is because production can continue at night and over weekends and also firms can benefit from economies of scale, which should lower the cost per unit of production.
Detailed explanation-2: -The extra raw material sitting in a batch production line costs money and is not being utilized. In a continuous-flow line, there is less space needed for transporting goods to the next step. With less inventory on the line at each moment, less space and manpower are required for moving products.
Detailed explanation-3: -Batch production is a manufacturing process in which groups or “batches” of identical products go through production steps all together. This reduces cycle times per product and enables goods to be manufactured flexibly in large quantities.
Detailed explanation-4: -Flow production – also known as continuous production – is one of several key manufacturing processes SMEs can use. Often a highly automated process, flow production supports the manufacture of large quantities of goods.
Detailed explanation-5: -Flow production works the same way no matter what products you’re manufacturing. Enables large volumes of production with lower cycle times. Continuous production increases levels of capacity utilization. Requires a substantial upfront investment in production facilities. 15-Jul-2021