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Business Flash Cards > 2.4 > Flashcards

2.4 Flashcards

1
Q

Resource management definition

A

The process of creating the product or service and delivering it to the customer ensuring the customer needs are met

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2
Q

What are the 5 steps in resource management

A

Design - product is designed to meet customer needs
Establishing the supply chain - the steps taken to get the parts from suppliers, to the factory and then to the customers
Working with suppliers - need to ensure supplers are reliable
Managing quality - having quality objectivies
Achieving high levels of efficiency - maximising outputs whilst minimising inputs

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3
Q

Factors to consider when picking a supplier

A

Cost of materials/products
Payment terms
Delivery - speed , cost and reliability
Quality
Availability of necessary quantities
Level of trust/relationship
How will complaints/issues be dealt with

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4
Q

Production definition

A

The process a product takes from being transformed from inputs to outputs

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5
Q

The key methods of production

A

Job
Batch
Flow
Cell

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6
Q

Automation definition

A

Machines/robots do the work

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7
Q

Job production definition

A

The production of one off items to meet the needs of each individual
e.g. cake maker

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8
Q

Pros and cons of Job production

A

Pros:
Low set up cost initially
Products can be tailored to suit individual needs
Premium price
High quality
Allows to differentiate from competitors
Cons:
Difficult to achieve economies of scale
Requires skilled labour
Time consuming
Goods are expensive so may limit the market
Output will be limited

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9
Q

Batch production definition

A

Identical items are produced in groups each item passing through the production process at the same time
e.g. Baker , clothers manufactur

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10
Q

Pros and cons of Batch production

A

Pros:
Increase flexibility - can vary the product that is produced with the same machinery
Can produce large quantities
Economies of scale
Cons:
Downtime when switching production to a new product
Can be high levels of waste

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11
Q

Flow production definition

A

Organised so that the items to be made flow round the factory in a continuous process until finished

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12
Q

Cell production definition

A

Organised into groups and then teams are set at workstations and see a product through to completion

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13
Q

Productivity definition

A

The output per unit of input per time period

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14
Q

Labour productivity definition

A

The output per worker per period of time

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15
Q

Capital productivity definition

A

The output produced per machine over a period of time

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16
Q

Factors affecting productivity

A

Specialisation and the division of labour
Education and training
Motivation of workers
Working practices
Labour flexibility
Capital productivity

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17
Q

Efficiency definition

A

Producing a level of output where av erage cost is minimised

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18
Q

Factors influencing efficiency

A

Introducing standardisation
Outsourcing
Relocating
Downsizing
Delayering
Investing in new technology
Lean production
Kaizen

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19
Q

Pros and cons of capital intensive strategies

A

Pros:
Generally more cost effective if large quantities are produced
Macinery is often more precise and consistent
Machonery can operate 24/7
Easier to mange then people
Cons:
High set up costs
High delays and costs - high maintance and repairs
Could be inflexible
Pose a threat to workforce and morale

20
Q

Pros and cons of labour intesnsive strategies

A

Pros:
More flexible
Cheaper for smaller scale production and place with lower wages e.g. China
People are creative and can help solve issues
Cons:
More difficult to manage
People can be unreliable
Cannot work without breaks and holidays
People sometimes need to be motivated to improve performance

21
Q

Capacity utilisation definition

A

The use that a business makes of its resources

22
Q

Capacity utilisation formula

A

current output / maximum output x 100

23
Q

Under utilisation definition

A

A business is producing less than capacity

24
Q

Over utilisation definition

A

A business is running at full capacity and straining resources

25
Q

Ways capacity utilisation can be increased

A

Reduce max capacity
Increase sales
Increase usage
Outsourcing
Redeployment

26
Q

Stock definition

A

Anything the business keeps that it is going to sell
e.g. raw materials/components , semi finished products and finished goods

27
Q

Why manage stock

A

Help manage costs
Meet customer needs
Respond to changes
Will not waste money

28
Q

Two main ways businesses manage stock

A

Just in case stock management / bar gate stock graph
Just in time stock control

29
Q

Buffer stock definition

A

Extra stock a business has which is emergency stock which the business can use in case there is ever a stock shortage

30
Q

Lead time definition

A

The difference between the time when an order was placed and the time the order was received

31
Q

Maxium level definition

A

The total amount of stock a business can hold

32
Q

Minimum level definition

A

The lowest amount of stock a business can operate with
An amount of stock a business can still use if the reorder is late

33
Q

Re order level definition

A

The amount of stock a business has before it reorders it to get it back to maximum before it falls bellow minimum level

34
Q

Ways to reduce waste in stock control

A

Proper storage units e.g. refrigerators for perishable goods
Do not overestimate
Use suitable stock rotation methods
Use a computer to manage stock
Reduce prices when products are getting old
Increase transport and delivery speed
Find a good way to dispose of waste

35
Q

Pros and cons of bar gate stock graphs / just in case-

A

Pros:
Allows business to meet fluctuations in demand and make sure customers are satisfied
Always has items in stock
Never have to stop making products
Cons:
Has to pay to hold the stock
Perishable stock might go off
Technology products might become outdated
Could be left with products not in demand

36
Q

Pros and cons of just in time

A

Pros:
Costs are lower
No wastage as they are ordered when needed
Cons:
Harder to meet fluctuations in demand due to no buffer stock
Will have no stock if suppliers fail

37
Q

Lean production definition

A

Production method which aims to use fewer resources in production
Minimise waste
Examples: Kaizen , cell production , flexible manufacturing , JIT stock control , team working and empowerment

38
Q

Results of lean production

A

Raises productivity
Lowers production costs
Reduces costs and cuts lead times
Lowers the number of defective products
Improves reliabilioty and speeds up the design time

39
Q

Quality definition

A

Features of a product that allow it to satisfty customer needs
How well a product is made

40
Q

Quality control definition

A

Making sure the quality of a product meets the specified quality performance criteria
Quality of the product is checked at the end of the process

41
Q

Benefits of offering high quality

A

Charge premium prices
Develop competitive advantage
Control costs / less waste

42
Q

Quality control methods

A

Quality assurance
Quality circles
Total quality management
Kaizen

43
Q

Quality circles definition

A

Small group of workers in the same area of production meet regulary to study and solve production problems

44
Q

TQM defintion

A

Business is designed to minimise erros
Manufacturing process is investigated at every stage
Every department organised in a way to make sure they take note of the quality

45
Q

Pros and cons of TQM

A

Pros:
Focuses on the needs of customers
Achieve quality in all aspects of the business
Analysis and remove waste in the business
Constant improvement
Cons:
Training and development costs of the new system
Regular audits take a lot of time and administration
Stress is placed on the process not the product

46
Q

Kaizen definition

A

Workers at the end of every day say way the business can be improved

47
Q

Competitive advantage from quality management

A

Increase sales
Can cut costs if faults are identified early
Get a USP

Business Flash Cards (19 decks)

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