2.4 Resoruce Management

Question 1

Name the Four Production Methods

Answer 1

Job
Flow
Batch
Cell

Question 1

What is Job Production

Answer 1

is used for one off items produced by skilled works
take along time
personal
have to be highly trained
unique
less likely to take advantge of economies of scale

Question 2

What are the advantages of Job Production

Answer 2

High Quality
High Skilled
Employees can be motivated
flexable method

Question 3

What are the disadvantages of Job Production

Answer 3

Idevidual Costs
High Labour Costs
Requires consultation with business

Question 4

What is Batch Production

Answer 4

Similar items are produced together
needs concentation skills
produce good quality products more econmically then manufacturing them
eg Coca - Cola with Diet Coke, Coke Zero, Vanilla Coke

Question 5

What are the advantages of Batch Production

Answer 5

increase customer satisfaction
can buy in bulk to save money
production can be worked on by specalist
fear of missing out

Question 6

What are the disadvantages of Batch Production

Answer 6

Takes time to switch production product
requires businesses to hold large amounts of stocks
can become boring

Question 7

What is Flow Production

Answer 7

moving continusly
time taken on each task must be the same
can be 24/7 as known as mass production

Question 8

What are the advantages of Flow Production

Answer 8

cost per unit is lower
sutable for mass quality’s
constant work
less need for training employyes

Question 9

What are the disadvantages of Flow Production

Answer 9

very long to set up
high raw materials
less customer choise
production shut down if flow is stopped

Question 10

What is Econmoies Scale

Answer 10

When unit cost fall as output increases

Question 11

What is Productivity

Answer 11

measures the relationship between inputs into the production process and the resultant objects

Question 12

What are some methods to improve productivity?

Answer 12

Training
Imporve Motivation
Improved Organisation of Production
More Capital Equipment
Better quality raw materials

Question 13

What is Capital Intensive Production

Answer 13

means production that doesn’t have to be done by humans eg Robots making a Car

Question 14

What is Capacity?

Answer 14

is a measure of how much output it can achieve in a given period
is dynamic meaning constantly changing

Question 15

What is Capacity Utilisation?
%

Answer 15

Actual Level of Output/ Maximum possible output X100

Question 16

Why do business operate below Capacity

Answer 16

lower market demand
loss of market share
recent increase in capacity
seasonal variations in demand eg Black Friday

Question 17

What is Cell Production?

Answer 17

is when flow is divided into differnt tasks for example each worker adding a differnt part for a car and each person resposible for a differnt part of creating the product.

Question 18

How do businesses control their stock

Answer 18

using stock control diagrams

Question 19

what does buffer stock mean

Answer 19

is the minimum level of stock so the business won’t run out of raw materials or finished goods and the amount of buffer stock depends on the storage space avaiable

Question 20

What are the benifits of holding buffer stock

Answer 20

• aviods running out of stock
• good for business in the mass market where they will constantly needing to meed customer demands
• When buying in bulk it can be cheaper which gives them purchasing economies of scale, because of this they can then lower prices and gain a competitive advanatge

Question 21

What are the drawbacks to buffer stock

Answer 21

• need to consider how much they are keeping as these costs are involved
• storage costs of holding it rent, heating, lighting refigeration and security as the stock is expensive
• Stock that is perishable and costs for throwing away goods
• Capital tied up into stock is unproductive. Deciding to hold losts of costs has opportunity costs - which is a benifit