2.4 Resoruce Management Flashcards
Name the Four Production Methods
Job
Flow
Batch
Cell
What is Job Production
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
What are the advantages of Job Production
High Quality
High Skilled
Employees can be motivated
flexable method
What are the disadvantages of Job Production
Idevidual Costs
High Labour Costs
Requires consultation with business
What is Batch Production
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
What are the advantages of Batch Production
increase customer satisfaction
can buy in bulk to save money
production can be worked on by specalist
fear of missing out
What are the disadvantages of Batch Production
Takes time to switch production product
requires businesses to hold large amounts of stocks
can become boring
What is Flow Production
moving continusly
time taken on each task must be the same
can be 24/7 as known as mass production
What are the advantages of Flow Production
cost per unit is lower
sutable for mass quality’s
constant work
less need for training employyes
What are the disadvantages of Flow Production
very long to set up
high raw materials
less customer choise
production shut down if flow is stopped
What is Econmoies Scale
When unit cost fall as output increases
What is Productivity
measures the relationship between inputs into the production process and the resultant objects
What are some methods to improve productivity?
Training
Imporve Motivation
Improved Organisation of Production
More Capital Equipment
Better quality raw materials
What is Capital Intensive Production
means production that doesn’t have to be done by humans eg Robots making a Car
What is Capacity?
is a measure of how much output it can achieve in a given period
is dynamic meaning constantly changing
What is Capacity Utilisation?
%
Actual Level of Output/ Maximum possible output X100
Why do business operate below Capacity
lower market demand
loss of market share
recent increase in capacity
seasonal variations in demand eg Black Friday
What is Cell Production?
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.
How do businesses control their stock
using stock control diagrams
what does buffer stock mean
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
What are the benifits of holding buffer stock
- 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
What are the drawbacks to buffer stock
- 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
