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Business > 2.4 - Resource Management > Flashcards

2.4 - Resource Management Flashcards

1
Q

What are the 4 methods of production?

A
  • Job production
  • Batch production
  • Flow production
  • Cell production
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2
Q

What are the key features of job production ?

A
  • One product made from start to finish
  • Usually made to customers specification
  • Often made by small specialist businesses
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3
Q

Advantages of job production?

A
  • Higher quality (premium prices)
  • Customer changes and requirements can be handled
  • Motivated employees
  • Flexible production method
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4
Q

Disadvantages of job production?

A
  • Individual cost of single unit costly
  • High labour costs
  • Needs close consultation with clients
  • Reliant on high skills
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5
Q

Key features of batch production?

A
  • Similar items produced together
  • Different batches
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6
Q

Advantages of batch production?

A
  • Cost saving (bulk buy)
  • Allows customers some choice
  • Allows to work on unexpected orders
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7
Q

Disadvantages of batch production?

A
  • Takes time to switch production to new batch
  • Need to maintain high stock levels
  • Reduced motivation (boring tasks)
  • Size of batch is dependent on capacity
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8
Q

Key features of flow production?

A
  • High volumes of same product
  • Product moves continuously through production process
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9
Q

Advantages of flow production?

A
  • Cost per unit reduces (bulk buy)
  • Suitable for large quantities
  • Capital intensive (24/7 work)
  • Requires less training
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10
Q

Disadvantages of flow production?

A
  • Long set up time & needs high quality machinery
  • Less differentiation for customer
  • Production stopped if flow stops
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11
Q

Key features of cell production?

A
  • Work organised into teams who work in a cell
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12
Q

Advantages of cell production?

A
  • Productivity
  • Increased motivation
  • Specialist staff
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13
Q

Disadvantages of cell production?

A
  • Long set up time
  • Training takes time
  • Needs good organisation
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14
Q

Factors that businesses use to decide on production methods.

A
  • Target market
  • Technology
  • Resources
  • Standards
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15
Q

What does productivity measure?

A

Measure the relationship between inputs into the production process and the resultant outputs.
E.g Output per machine

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16
Q

What is capacity utilisation?

A

What proportion of the maximum output that they are actually producing.

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17
Q

Why is capacity utilisation an important concept?

A
  • Used as a measure of productive efficiency
  • Average production costs tend to fall as output rises
18
Q

Benefits of working at 100% capacity utilisation.

A
  • More revenue
  • Lower unit costs
19
Q

Drawbacks of working at 100% capacity utilisation.

A
  • Demotivated staff
  • Can’t maintain machinery so could break down
  • May be hard to meet new and unexpected orders
  • Mistakes-pressure & labour turnover
  • Less efficient if overcrowded
  • Have to pay overtime
20
Q

What is labour intensive?

A

A process that involves a large workforce or a large amount of work in relation to output.

21
Q

What is capital intensive?

A

A process that involves large investments of money on things like automation.

22
Q

Pros of labour intensive?

A
  • Flexible resource (training & multi-skilled)
  • Mainly variable costs
  • Unit costs may be low in low-wage locations
23
Q

Cons of labour intensive?

A
  • Risk of problems with staff/employer
  • Possible of high costs of labour turnover
  • Costs of training
24
Q

Pros of capital intensive?

A
  • Economies of scale
  • Better productivity
  • Better quality and speed
  • Lower labour costs
25
Q

Cons of capital intensive?

A
  • Big investment
  • Resistance to change from staff
26
Q

What is capacity?

A

A measure of how much output it can achieve in a given period

27
Q

Ways to increase capacity?

A
  • Increase workforce hours
  • Stop maintenance for a period of time
  • Sub-contract some production processes
28
Q

What are the 3 categories of stock?

A
  • Raw materials
  • Work in progress
  • Finished goods
29
Q

Why do businesses hold stock?

A
  • Enables production
  • Satisfies customer demands
  • Precaution from supply delay
  • Provides a buffer
  • Efficient production
  • Allows seasonal changes
30
Q

Why is stock management important?

A
  • Need to have enough stock that is right
  • Lots of cash tied up in stock (could be used elsewhere)
31
Q

Factors businesses need to consider when deciding how much stock to hold.

A
  • Need to satisfy demand
  • Need to manage working capital
  • Risk of stock losing value
32
Q

Impact of holding too much stock?

A
  • Cost of storage
  • Interest costs
  • Going out of style / expiring
  • Theft
  • Not as lean
33
Q

What is lead time?

A

How long it takes for the supplier to deliver the order.

34
Q

Benefits of holding lots of stock?

A
  • Lower unit costs
  • Less likely to experience stock outs
  • No production delays
  • Can handle unexpected changes in demand
35
Q

What is quality?

A

Quality is about meeting the needs and expectations of customers.

36
Q

Pros and cons of quality?

A

+ Good reputation
+ Loyalty
+ Retailers want to stock product
+ Premium price
+ Fewer returns
- Product failure
- Lost customers
- Poor reputation
- Costs of remakes
- Cost of returns
- Wasted materials

37
Q

What is quality control?

A

Traditional approach that involves a specially trained team to check a sample of products.

38
Q

What is quality assurance?

A

Modern method which encourages workers to check the quality of their own work throughout the production line.

39
Q

Pros and cons of quality control?

A

+ Prevents release of faulty products
+ Specially trained staff / less mistakes
- Quality team costs
- Only check at the end

40
Q

Pros and cons of quality assurance?

A

+ Don’t have to pay for a team
+ High staff motivation
+ Less wastage
- Could add stress to employees
- Staff may expect higher wages

Business (20 decks)

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