- Production is organised in a continuous sequence.
- Able to produce large quantities.
- Usually the product is simplified and standardised.
- Capital intensive.
Advantages
- Unit costs are reduced as firms gain economies of scale.
- The process is highly automated, which reduces the need for labour.
- No need to stock large quantities of goods.
Disadvantages
- Very high set-up costs.
- No possibility of producing a wide product range and meet different customers’ needs.
- The workforce is not motivated.
- Breakdowns are costly.
