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GCSE Design and Technology · key term
A reduction in the cost per product associated with producing or purchasing in large quantities.
Used by Edexcel and Eduqas
Specification 2.3.6 · Paper 1
Revise: Cultural and Ethical FactorsFirst, manufacturers buying very large quantities of steel can negotiate a lower price than a buyer purchasing only a few sheets. This is an economy of scale. Second, automated processes can make products much faster than one-off manufacture, reducing the labour cost per product.
Component 1
A reduction in average production cost per item as output increases, for example because set-up costs are spread over more items.
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Injection moulding is suited to making large numbers of identical polymer parts, such as product casings. Its machinery and accurately engineered moulds are expensive, but their set-up costs are spread across many items. This is an economy of scale: increasing output can reduce the average cost of each item.
