2.4 Resource Management Flashcards
What is production?
Production is the transformation of resources into finished goods or services
What are the ways to improve capacity utilisation?
- Increase sales
- Increase usage
- Outsourcing
- Reduce capacity
- Redeployment
True or false? If a business has a high level of capacity utilisation, it may not have have flexibility to respond to new orders
True
True or false? A stock control diagram illustrates the flow of stock into and out of a business over time.
True
True or false? Buffer stocks are a quantity of goods/raw materials kept in case of stock shortages to provide a competitive advantage over rivals unable to meet demand.
True
True or false? Disadvantages of buffer stock include the risk of obsolescence.
True
True or false? Just in time (JIT) stock management is a process where raw materials are stored on-site and ordered as required.
False
True or false? Advantages of JIT include stockholding costs being eliminated.
TRUE
True or false? Waste can occur for reasons such as perishable stock.
True
True or false? Lean production involves maximizing the resources used in production.
False - Minimising resources used in production
True or false? Quality circles involve groups of workers meeting regularly to solve quality problems.
True
True or false? Total quality management (TQM) focuses on quality in all aspects, improving efficiency.
True
True or false? Kaizen (continuous improvement) involves a business taking continuous steps to increase productivity by reducing waste
True
True or false? Quality management cannot provide a competitive advantage.
False
