2.4 Resource Management Flashcards
Production
Total amount of output produced in a time period
Job Production
Producing one bespoke item at a time to meet specific requirements asked of by customers e.g tailored suit
Lead Times
Time between the initiation and the completion of the production process
Batch Production
Goods made in batches and can be switched over to make something different on the same production line to meet varying customer demands
Flow Production
Different operations can be carried out in a continuous sequence
Cell Production
Workplace is divided into work stations (cells), workers in each cell responsible for making a product family
Productivity
Output per unit of input per time period, measure of efficiency
Capital Employed
Amount of capital invested to operate
Efficiency
Production at minimum average cost
Labour Intensive Production
Labour is primarily used to produce the good or service
Capital Intensive Production
Machines are primarily used to produce the good or service
Capacity Utilisation
Maximum level of output a business can produce in a given period
Buffer Stocks
Certain amount of stock that is held in case of unexpected events or orders meaning that they can still be met without a delay
Just in Time (JIT) Management of Stock
Stock is ordered just as it is needed in the production
process, hold no buffer stock
Lean Production
Aims to reduce resources used in production
Quality Control
Process that ensures product quality is maintained or improved through the reduction in mistakes
Quality Assurance
Acts a preventative approach, all employees ensuring quality at each and every stage of the production process
Quality Circles
A group will meet on a regular basis to solve production problems and suggest improvements that can be made in regards to the current systems being used
Total Quality Management (TQM)
Quality is at the centre of
everything that an organisation does
Kaizen
Continual improvement, process of constantly introducing small incremental changes in order to improve the production process
Quality Management
Quality is an important factor in gaining a competitive advantage as it is associated with consistency
