2.2 Resource management

Question 1

What are the three types of production?

Answer 1

Job production
Batch Production
Flow production

Question 2

Give an example of all three types of production.

Answer 2

Job production - Guitars
Batch production - Cupcakes
Flow production - Sausages

Question 3

Give some pros of job production.

Answer 3

Pros
-Very organised workers
-Bespoke unique products

Question 4

Give some cons of job production.

Answer 4

Cons
-Workers are expensive
-Wide range of tools needed
-Long lead team between start and finish.

Question 5

Give some pros of batch production.

Answer 5

Pros
-Production can be changed to meet customer demands
-Lower wages as workers have lower skills
-Can be mechanised so no need for too many staff

Question 6

Give some cons of batch production.

Answer 6

Cons
-Small batches can carry higher unit cost
-Workers are less motivated due to repetitive tasks

Question 7

Give some pros of flow production.

Answer 7

Pros
-Average costs are much lower
-Mainly automated and computerised

Question 8

Give some cons of flow production.

Answer 8

Cons
-High set up costs
-Low motivation for workers
-Break downs are very costly

Question 9

What is cell production?

Answer 9

The production of items is organised into groups and then teams are set at workstations and see a product through to completion.

Question 10

Give some pros of cell production.

Answer 10

Pros
-Minimal handling of the product cost
-Motivating for workers to see product completed
-Lead times are reduced

Question 11

Give some cons of cell production.

Answer 11

Cons
-May cause Tension in the cell if it gets competitive
-Huge investment into each cell for machinery

Question 12

What is labour productivity?

Answer 12

Labour productivity is the amount of volume of output that is obtained from each employee

Question 13

What is capital productivity?

Answer 13

Products are produced by machines/robots, meaning the initial outlay & maintenance, will be very high.

Question 14

Gives examples of labour intensive.

Answer 14

-Food processing
-Hotels & restaurants
-Fruit farming
-Coal mining

Question 15

Give examples of capital intensive.

Answer 15

-Oil extraction
-Car manufacturing
-Web hosting
-Intensive arable farming
-Transport

Question 16

What is capacity utilisation?

Answer 16

Capacity utilisation is the proportion of maximum possible output that is currently being used.

Question 17

Give the equation for capacity utilisation.

Answer 17

Actual Output
————————————- X 100
Maximum Possible Output

Question 18

Why do business not work at 100%?

Answer 18

-Lower demand
-Increase in capacity not yet matched by increased demand
-Inefficiency (poor maintenance)

Question 19

How do you work above 100%?

Answer 19

-Increase workforce staff
-Sub-contract some production activities
-Reduce time spent maintaining production equipment

Question 20

What is stock control?

Answer 20

Stock control is the control of the flow of stock in a business, it concerns the ordering and management of:
-Raw materials
-Work-in-progress
-Finished goods

Question 21

What are the consequences for holding stock?

Answer 21

It costs money for:
-Storage area
-Computer records
-Staff to manage stock
-Cash tied up in stock

Question 22

What is buffer stock?

Answer 22

This is stock a business holds onto in case of an increase in demand or the suppliers aren’t there in time.

Question 23

What is the re-order level?

Answer 23

This is when the business decides to re-order more stock.

Question 24

What is Just-In-Time (JIT)

Answer 24

When a business orders stock just in time for when it is needed.

Question 25

What are the advantages of JIT?

Answer 25

-As parts are needed they are ordered which creates little wastage
-Parts are not needing to be stored in warehouses
-Less capital tied in stock

Question 26

What are the disadvantages of JIT?

Answer 26

-Can’t cope with unexpected increases in demand
-If deliveries are late they will need to halt production
-Will not gain discount from bulk production
-Higher admin costs due to more order being placed

Question 27

What is lean production?

Answer 27

This is an apporach to management that focuses on cutting waste, whist ensuring quality.

Question 28

What is the aim of lean production?

Answer 28

To use less of everything;
-Time
-Labour
-Capital
-Space
-Raw materials

Question 29

What is the definition of quality?

Answer 29

Quality is defined by the customers.

Question 30

What are benefits of good quality?

Answer 30

-Generate positive brand image
-Retailors are more likely to stock a product with a good reputation
-Allows for a premium price

Question 31

What are the drawbacks of poor quality?

Answer 31

-Loss of sales
-Loss of reputation
-May need to discount price
-May impact other product the business sells
-Retaoilors unwilling to stock

Question 32

What are the different approaches to quality in business?

Answer 32

-Quality control
-Quality assurance
-Quality circles
-Total quality management (TQM)

Question 33

What is quality control?

Answer 33

Quality control is concerened with checking and reviewing work that has already been done

Question 34

What is quality assurance?

Answer 34

Ensures quality after every stage of production.

Question 35

What are quality circles?

Answer 35

A gtoup of employees meet on a regular basis to solve production problems.

Question 36

What is total quality management?

Answer 36

It is a management approach to building a business culture that puts quality at the heart of everything in the business.

Question 37

What is kaizen?

Answer 37

Is a policy that constantly introduces small changes in a business in order to improve quality.