Business – 4.1 The nature of operations – Operations methods | e-Consult
4.1 The nature of operations – Operations methods (1 questions)
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| Factor | Craft Production | Mass Production |
| Costs | Higher unit cost due to skilled labour and low economies of scale. | Lower unit cost through economies of scale and mechanisation, but high fixed capital cost. |
| Staff Morale | Often high – workers take pride in craftsmanship and autonomy. | Can fall – repetitive tasks, reduced skill use, and fear of redundancy. |
| Flexibility | Very flexible – easy to customise products and respond to small order changes. | Low flexibility – set up costs and standardised processes limit product variety. |
Conclusion: The shift to mass production can deliver significant cost savings and meet high demand, but it may undermine staff morale and reduce the ability to customise products. The change is advisable only if the market demands large volumes of standardised goods and the firm can manage the associated human‑resource challenges.