Choice of production methods

Batch production Batch production is the method used to produce or process any product in groups or batches where the products in the batch go through the whole production process together. Besides, to prevent excessive urbanisation and concentration and to arrest the tendency for mass migration into the urban areas, there is need for adopting a strategy for rural industrialisation, based on small-scale manufacturing using intermediate technology dispersed throughout the countryside to increase rural employment and income.

On the contrary, with a lower capital-intensity the surplus is smaller and consequently rate of growth of output and employment will be smaller, though the present level of employment will be large.

Production methods

Hence, a conflict between output and employment arises. OK is the given amount of capital available which takes different form according to different degree of capital intensity. But the above argument regarding capital-intensive techniques yielding Choice of production methods employment in the future is based on the crucial assumption that a major part of profits is re-invested and most of wages are consumed.

The rational installation of production equipment requires the selection of such means of production and its operation at such operating point or points as make producing the well under consideration Choice of production methods the prescribed rate as cheap as possible. And on account of higher growth of output and employment the capital-intensive technique fully compensates for the initial loss of output or employment by the time T2.

Each batch goes through one stage of the production before moving onto next stage. However, it is worth mentioning that in a labour-surplus economy, labour-intensive technique may not be actually chosen by a cost-minimizing firm because of the existence of distortions of factor prices from their true scarcity values.

Choice of Techniques of Production in Developing Countries! For the optimum choice of technique of production or capital intensity two alternative criteria have been put forward. The problem is made difficult because the achievements of the twin objectives of reducing unemployment and promoting rapid economic growth through a choice of technique clash with each other at least in the short run.

Therefore, the choice of capital-intensive techniques will ensure higher rate of growth and therefore more employment in the future. Thus though the choice of labour-intensive technique yields higher levels of output and employment in the present it yields lower rate of growth due to smaller reinvestible surplus.

With this choice of capital-intensity, OL2 labour is employed. After time T2, the society would have higher levels of output and employment by choosing capital- intensive technique.

Previous chapter in volume. Thus only a part of any increased income going to the rich will be saved and the part that will be spent would generate less employment than a similar amount of spending by the poor.

For example, a given amount of resources may be invested in either handlooms or automatic looms which employ quite different amounts of labour. In it the choice of capital intensity has to be decided keeping in view the problem of mass unemployment and the need for rapid economic growth to raise levels of living of the people.

In addition, employment gives individual a sense of participation in socially gainful activity and prevents the feeling of being not wanted which has a great demoralising effect.

Job Production is highly motivating for workers because it gives the workers an opportunity to produce the whole product and take pride in it. Flow production is when the product is built up through many segregated stages; the product is built upon at each stage and then passed directly to the next stage where it is built upon again.

Mass production Flow production Process Production is also a very common method of production. At L1, the capital-intensity is higher but employment smaller than with capital-intensity at L2.

Choice of Techniques of Production in Developing Countries

On the country, if capital-intensive techniques are chosen, they may yield less employment and output in the present but they will yield more surplus or profits as compared to wages.A choice between alternative techniques of production is a major problem in the planning for developing countries.

This is because a particular choice of technique of production affects not only the magnitude of employment but also the rate of economic growth. Several alternative techniques of. The following factors will influence whether a business adopts one of the four methods of production considered – that is job, batch, flow or flow production with the development to mass customization.

Chapter 5 Choice of most economical production methods The rational installation of production equipment requires the selection of such means of production and its operation at such operating point or points as make producing the well under consideration a t the prescribed rate as cheap as possible.

Production methods fall into three main categories: job (one-off production), batch (multiple items, one step at a time for all items), and flow (multiple items, all steps in process at once for separate items).

Sep 17,  · Textbooks speak of three methods of production - job, batch and continuous flow. This film shows how the methods work in the real work. TV CHOICE has a.

The various methods of production are not associated with a particular volume of production. Similarly, several methods may be used at different stages of the overall production process. Low technology jobs: here the organisation of production is extremely simply, with the required skills and.

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Choice of production methods
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