(2.2 in Booklets) Managing Business Resources 2.4 Flashcards
Job Production
Making 1 unique product from start to finish
Batch Production
Making batches of similar products e.g paint
Flow Production
Continuous production of identical items
Benefits of job production
Specialist Skills
Flexible
Charge a high price
High quality
Specialist Work
Limitations of Job Production
Takes time
Expensive to hire specialist staff
Labour Intensive
Benefits of Batch Production
+Product can be changed to match customer wants and needs
+Standard Production - Production can be mechanised so its less labour intensive
+Employees become specialised to do their job
Benefits of Flow production
Lower CPU
Automated
Production Is continuous
Economies Of Scale
Limitations of Flow production
High cost machinery
Low Motivation
Break downs are likely to cost them
Benefits of Cell production
Cost Saving
Skilled Staff
Relationship in Workforce
Quality Control
Limitations of Cell Production
Expensive to set up
Cell Production
Items is organised into groups + then teams are set up at workstations to see a product through to completion
Capacity utilisation
The proportion of maximum possible output that is currently being used
Benefits of working at 100% capacity
Most Revenue
More output
Lower CPU
Better Economies of scale
Drawbacks of working at 100% capacity
Demotivated staff
May not be enough time for routine maintenance
Crowded factory
May be needing to pay overtime
Why its needed to work at lower than 100%
General reduction in demand
To keep spare capacity
Operating above capacity
Increase Staff hours (Overtime)
Recruit Staff
Swing Shifts
Sub Contracting
Lean Production
Approach to management that cuts out waste, whilst ensuring quality
Labour Production Formula
Output (Per time period)/ No. employees (Per time Period)
Capital Production Formula
Output/ Capital employed
Why does a business keep stock?
Need a min amount of stock- enough ready if needed (Buffer stock)
Stock to replenish when supplies are used
Consequences of poor stock control
Stock costs money for a business to hold
Storage Area
Computer Records
Staff to manage stocks needed
Cash tied up in stock
Problems of holding too much stock
Storage Costs
Food Storage- needs certain conditions
Insurance
Computer Records
Opportunity costs- space could be used for something else
Theft is possible
JIT- Just in Time
Helps negate the issues associated with holding too much stock by introducing the supplies right at the moment they’re needed.
Advantages of JIT
No wastage
Parts are warehoused
Lower CPU
