The term ‘production technique and ‘production technology’ should not be used inter changeably. The choice of a production technique is a tactical operation decision, while the choice of production technology involves a strategic policy decision taken at the top management level. Technique is a narrower concept than a technology.
The former incorporates only process adjustments, whereas the latter includes process, pattern as well as product adjustments. In brief, ‘technique’ is used more in a micro sense and ‘technology’ more in a macro sense.
Further, changes in techniques are limited by available technology. The choice of technique and technology depends on the sufficiency and efficiency of inputs and the nature of output, which is to be produced.
Image Source : fraunhofer.de
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Production technique refers to intensity of factor utilization or factor proportion. For example, in labour-intensive technique, L/K ratio goes up with increase in output and capital is saved here. On the other hand, in capital intensive technique, K/L ratio goes up with increase in output and there is labour saving.
The Indian economy has witnessed several facts of technological revolution. There has been in novation resulting in extended use or modified version of an existing item. Innovation has been another alternative.
For example, in Punjab, washing machines were used for preparing lassi-something beyond the obvious. Sometimes, we may even find simultaneous existence of traditional indigenous technology along-with modern sophisticated technology. Use of manual labour as well as automatic machine in a factory is a popular example of technological dualism.
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Technology developed in other country can also be adopted with or without modification. Blindly copying the process, pattern or product is called imitation. Here, a word of caution may be given. The technology for mass production is generally different from the technology for class production.
The class production is a sort of tailor made product as per the dictate of the customers. To facilitate such customized production, we need a technology called as flexible manufacturing system (FMS).