Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business Theme 2 > 2.4 Resource Management > Flashcards

2.4 Resource Management Flashcards

1
Q

What is job production?

A

Involves making one- off items to suit each customer’s individual requirements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Pros of job production

A

Higher quality
Flexible production method
Employees can be better motivated meaning more job satisfaction

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Cons of job production

A

Cost per unit is very high
Reliant on staff with high skills
Relies on close consultation with the client

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is Batch production?

A

Makes a group of products to one specification at a time, allowing some variation in products, yet some specialisation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Pros of batch production

A

Allows variation in the product being made.
Lower skilled workforce means lower wages can be paid.
Faster than job production as making a batch of identical products speeds up the production process.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Cons of batch production

A

More costly as specialist machinery will be needed.
Workers may be less motivated with repetitive work.
Cost per unit will be high as machinery will need to be adjusted between batches.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is flow production?

A

Refers to the production of a single standardised product.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is automation?

A

Means using machines to complete tasks within a process.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Pros of flow production

A

Unit labour costs are extremely low.
High volumes allow huge demand in mass markets to be met.
Consistent quality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Cons of flow production

A

High initial costs of installing production machinery.
Products need to be identical.
Repetitive work leading to low motivation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is cell production?

A

Involves organising workers into small groups/ cells that can produce a range of different products more quickly than job production allows.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Pros of cell production

A

Less time moving from place to place
Group working allows ideas to be generated within the cell for improvements to processes
Motivating for workers to see a completed product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Cons of cell production

A

Heavily reliant on people rather than automation meaning costs are high
Production volumes will not be as high as in flow production
Huge investment in machinery for each cell

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

When is cell production most effective?

A

When there is a need for flexibility but also high production volumes.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is productivity?

A

Output per unit of input per time period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Formula for productivity

A

total output divided by no. of workers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Factors influencing productivity and efficiency

A

Quality/ age of machinery
Skills/ experience of workers
Level of employee motivation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Efficiency

A

Measures the extent to which the resources used in a process generate output without wastage leading to failing average cost of production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is Labour intensive production?

A

A production process that relies heavily on human input with little use of automation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Issues with Labour intensive production

A

High proportion of total costs

Managing labour costs becomes critical

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is capital intensive production?

A

A production process that uses high levels of automation reducing the role of humans as much as possible replacing them with machines.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Issues with Capital intensive production:

A

Initial costs will be very high due the need of specialist machinery
Running costs will be relatively low
May offer little flexibility in terms of product variations.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is capacity?

A

The term used to describe the maximum possible output of a business.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is capacity utilisation?

A

The proportion of maximum capacity being used by the business.

25
Q

What is the formula for capacity utilisation?

A

Actual output
——————— times by 100
Maximum output

26
Q

What are the implications of under utilisation?

A

Fixed costs per unit will be higher
Leads to fears for job security among staff, damaging morale
Causes poor morale among managers

27
Q

What are the implications of over utilisation?

A

Firm may be unable to accept new orders, potentially turning customers away to rivals.

There will be little to no time to carry out maintenance on machines/ train staff.

28
Q

How to improve capacity utilisation:

A

Increase current output by boosting volume of sales through advertising/ cutting selling price.

Reduce maximum capacity by selling off assets/ laying off staff.

29
Q

What is stock?

A

The materials, partially made products or finished goods owned by a business that have not been sold.

30
Q

What is a stock control diagram used for?

A

To control/monitor the flow of stock

31
Q

What are the key features of a stock control diagram?

A

Maximum stock level

Re order level

Minimum stock level (Buffer stock)

Lead time

32
Q

What is buffer stock?

A

Stock that is held just in case there is a problem with delivery of new stock or a sudden increase in demand.

33
Q

Why would a business keep buffer stock of raw materials?

A

Can continue with production even if there is a problem with stock deliveries.

If a batch of supplies is found to be faulty, buffer stock can be used to continue production.

34
Q

What would a business keep a buffer stock a finished goods?

A

Allows the firm to accept rush orders from customers.

Helps ensure the business can always supply customers when they need a product.

35
Q

What are the disadvantages of holding buffer stock?

A

Costs associated with stock holding e.g storage, insurance

Risk of wastage e.g out of date, damaged of obsolete

36
Q

What are the drawbacks of having too much stock?

A

Opportunity cost

Cash flow problems

Increased storage costs

Increased financing costs

Increased wastage

37
Q

What are the drawbacks of holding too little stock?

A

Lost customers

Delays in production

Loss of reputation

38
Q

What is just in time stock management?

A

A Japanese rooted approach to stock management that aims to eliminate buffer stock completely.

39
Q

What are the benefits of using JIT?

A

Less costs in holding inventory

Less working capital required

Avoids having unsold stock

Less obsolete/ ruined inventory

40
Q

What are the drawbacks of JIT?

A

Little room for error

Very reliant on suppliers

High initial set up costs

Unexpected orders harder to meet

Any delays in delivery cause production to stop

41
Q

What is waste minimisation?

A

Reducing the amount of raw materials used.

42
Q

What is lean production?

A

A collective term for a range of Japanese techniques designed to eliminate waste from business processes.

43
Q

What is the competitive advantage from lean production?

A

Higher levels of productivity, reducing labour cost per unit

Less space of stock, reducing fixed costs

Higher quality, giving repetitional advantages/ greater repeat custom

Faster development of new products

44
Q

What is quality?

A

The ability of a good/service to meet customers expectation.

45
Q

What factors may influence customers interpretation of quality?

A

Price

Brand

Nature of good or service

Customers personal expectations/experiences

46
Q

How can quality be measured?

A

Function

Aesthetics

Performance e.g durability

Reputation

47
Q

What are methods of improving quality?

A

Training/ motivating employees

Working closely with suppliers

Understanding customers expectations

Using technology

Quality systems e.g QC,QA,TQM

48
Q

What is quality control?

A

Involves checking a good/service before it is delivered to a customer i.e at the end of the process to ensure it meets specified quality performance criteria

49
Q

What are the strengths of quality control?

A

Quality can be monitored

Stops faulty products reaching customers

Common problems can be identified

Often a robust system

Inspector takes responsibility

50
Q

What are the weaknesses of quality control?

A

Problems only identified at the end of the process

Waste levels may be high

Takes responsibility away from operatives

51
Q

What is quality assurance?

A

The checking of a product or service at each stage of its production e.g as it travels along a production line

52
Q

What are the strengths of quality assurance?

A

Spots any faults early saving resources being wasted at the next stage of the production process

Ensures clear systems are in place

Enhances the reputation of the business as less chance of faulty goods reaching the end customer

Motivates workers who are responsible for ensuring quality standards are met

53
Q

What are the weaknesses of quality assurance?

A

Requires staff training/ high levels of staff commitment

May demotivate workers who feel under pressure

Can slow the production process and labour productivity leading to higher unit costs

Opportunity cost of managers time when initially implementing systems and procedures

54
Q

What is total quality management?

A

A way of encouraging staff to think about the business.

55
Q

What are the strengths of total quality management?

A

Not paying for inspectors

Empowered employees are motivated

Improved quality = more satisfied customers

More involved workers

More effective management and decision making

56
Q

What are the weaknesses of total quality management?

A

Takes time to introduce

Some staff will be resistant to change

Will cost to train staff

Employees may not welcome extra responsibility

57
Q

What are quality circles?

A

Groups of staff (5-20) who meet regularly to find quality improvements.

58
Q

What is Kaizen?

A

A system that concentrates of small but frequent improvements in every aspect of the production process.

Key features of continuous improvement and eliminating wastage.

59
Q

How can you get competitive advantage from quality management?

A

Can help achieve lower unit cost (less wastage)

Positive image to consumer and distributors

USP

Motivated workforce

Premium prices

Business Theme 2 (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions