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What is the optimal mix of resources for operations?
Labour intensive processes
Capital intensive processes
What are the key features of labour-intensive processes?
Labour costs are higher than capital costs
Costs are mainly variable
Labour supply (quantity and quality) and cost are key issues
What are the examples of labour-intensive processes?
Hotels and restaurants
Fruit farming/picking
Hairdressing and other personal services
What are the key features of capital-intensive processes?
Capital costs are higher than labour costs
Costs are mainly fixed (including depreciation)
Significant investment is often required (e.g automation) but with longer-term benefits on unit costs
What are the examples of capital-intensive processes?
Oil extraction and refining
Car manufacturing
Pharmaceutical production
Note 
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