Brainscape's Knowledge GenomeTM

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


See full index

A-Level Business Theme 2 > 2.4 - Resource Management > Flashcards

2.4 - Resource Management Flashcards

1
Q

What is Job Production?

A

Job production concentrates on producing one product from start to finish. Once one product is complete, another can begin.

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

What are the advantages of job production?

A
  • High quality finished product
  • Can customise orders
  • Worked are involved in the entire production process from start to finish
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are the disadvantages of job production?

A
  • Production costs are likely to be higher
  • Production time may be longer
  • Investment in machinery may be higher as specialist equipment may be needed
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is batch production?

A

Batch production enables items to be created stage by stage in bulk (‘a batch’).

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

What are the advantages of batch production?

A
  • Allows flexible production
  • Inventories of part-finished goods can be stored and completed later
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the disadvantages of batch production?

A
  • Making many small batches can be expensive
  • If production runs are different, there may be additional costs and delays in preparing equipment
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is flow production?

A

Flow production is also known as continuous production. It enables a product to be created in a series of stages on an assembly line.

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

What are the advantages of flow production?

A
  • Economies of scale can be achieved as cost per unit will be low
  • Automated assembly lines save time and money
  • Quality system can be built into the production at each stage
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are the disadvantages of flow production?

A
  • Standardised product produced
  • High initial set-up costs of automated assembly lines
  • Workers find work repetitive and boring
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is cell production?

A

Cell production has the flow production line split into units. Each ‘cell’ is responsible for a part of the finished article and team members are skilled at a number of roles, so it provides a means for job rotation.

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

What are the advantages of cell production?

A
  • The closeness of cell member should improve communication, avoiding misunderstandings or non-received messages.
  • Workers become multi-skilled and more adaptable to the future needs of a business.
  • Greater worker motivation, arising from variety of work, team working and more responsibility.
  • Quality improvements as each cell has ‘ownership’ for quality on its area.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are the disadvantages of cell production?

A
  • The company may have to invest in new materials handling and ordering systems suitable for cell production.
  • It mat not allow a firm to use its machinery as intensively as in traditional flow production.
  • Some small scale production lines may not yield enough savings to make a switch to cell production economically worthwhile.
  • Recruitment and training of staff must support this approach to production.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

How do you calculate Capacity Utilisation?

A

Actual Output
————————————— x 100
Maximum Possible Output

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

Why is capacity utilisation an important concept?

A
  • It is used as a measure of productive efficiency
  • Average production costs tend to fall as output rises - so higher utilisation can reduce unit costs, making a business more competitive
  • Firms usually aim to produce as close to full capacity (100% utilisation is possible)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Why do most businesses work below 100%?

A
  • Lower demand
  • General reduction in market demand
  • Loss of market share
  • Seasonal variation in demand
  • Possibly new technology introduced
  • Provide some ‘slack’
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are the financial implications of capacity utilisation levels?

A

The level of capacity utilisation determines how much fixed costs should be allocated per unit, so as firms capacity utilisation increases, the fixed costs (and therefore also total costs) will decrease per unit.

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

How can a firm increase their capacity?

A
  • Increase workforce hours
  • Sub-contract some production activities
  • Reduce time spent maintaining production equipment
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q
A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Why do many businesses work below 100%?

A
  • Lower demand
  • General reduction in overall market demand
  • Loss of market share
  • Seasonal variation in demand
  • Possibly new technology introduced
  • Provide some ‘slack’
20
Q

How can a business improve their capital utilisation?

A
  • Increase workforce hours
  • Sub-contract some production activities
    *Reduce time spent maintaining production equipment
21
Q

What is the maximum stock level (stock control graph)?

A

The largest amount of items to be stored on site.

22
Q

What is the minimum stock level (stock control graph)?

A

The lowest amount of items to be stored on site.

23
Q

What is the reorder level (stock control graph)?

A

The amount at which new stock is ordered. There will be a LEAD TIME for ordered stock to arrive, therefore there is always a BUFFER STOCK of items held in case deliveries are held up or there is an unexpected large order.

24
Q

What are the advantages of holding Buffer Stock?

A
  • Bulk discounts
  • Should always be able to handle high demand and emergencies
  • Therefore sales should not be lost, helping revenue
  • This should lead to a better relationship with customers enhancing reputation
25
Q

What are the disadvantages of holding Buffer Stock?

A
  • Storage costs
  • Stock may not be needed after a while if the market is dynamic
  • Therefore price may need to be decreased to get rid of it quicker
26
Q

What are the consequences of poor stock control?

A
  • Stock costs money for a business to hold:
  • Storage area
  • Computer records
  • Staff to manage stocks held
  • Cash tied up in stock
  • If a business does not efficiently manage its stock control then it will have cash flow problems as too much cash tied up in old stock means that new raw materials cannot be purchased to make a more innovative product
27
Q

What is the ‘Just In Time’ (JIT) stock management approach?

A

JIT aims to ensure that inputs into the production process only arrive when they are needed.
Based on a ‘pull’ system - customer order determines what is produced. Requires complex production scheduling. Supplies delivered to production line only when needed. Requires close cooperation with high-quality suppliers

28
Q

What are the objectives of JIT?

A
  • Eliminate waste in production
  • Improve productivity
29
Q

What are the advantages of JIT?

A
  • Lower stock holding means a reduction in storage space which saves rent and insurance costs
  • As stock is only obtained when needed, less cash is tied up in stock
  • Less likelihood of stock perishing, becoming out of date, or no longer ‘trendy’
  • Less time spent on checking and re-working production as emphasis is on getting work right the first time
30
Q

What are the disadvantages of JIT?

A
  • There is little room for mistakes as minimal stock is kept for re-working faulty product
  • Production is highly reliant on suppliers and if stock is not delivered on time, the whole production schedule can be delayed
  • There is no spare finished product available to meet unexpected orders, because all product is made to meet actual orders
  • A need for complex, specialist stock systems
31
Q

What is lean production?

A

An approach to management that focuses on cutting out waste, whilst ensuring quality.
Aims to reduce resources used; use less:
* Time, Labour, Capital, Space, Raw materials.

32
Q

What are the main methods of lean production?

A
  • Time based management
  • Simultaneous engineering
  • Just In Time production (JIT)
  • Cell production
  • Kaizen (Continuous improvement)
33
Q

How does lean production provide a competitive advantage?

A
  • Price - Can provide lower prices than competitors as waste is removed and costs are cut
  • Positive environmental stance - Lean production cuts out physical waste also, meeting the growing pressure to be environmentally conscious
  • Employees - Lean production will cut wasteful methods such as long wait times or call transfers, meaning customer experience will be more positive
34
Q

What is Quality Control?

A

Quality control is detecting faults rather than preventing them; it is done at the end of the production process. For example, inspection, sampling, testing.

35
Q

What are the advantages of Quality Control?

A
  • Can be used to guarantee that no defective item will leave the factory
  • Require little staff training, therefore it suits a business with unskilled or mainly temporary staff
36
Q

What are the disadvantages of Quality Control?

A
  • Leaving quality for inspectors to sort out may mean poor quality is built in to the product (e.g. clothes with seams that soon unpick)
  • Quality Control can be trusted when 100% of output is tested but not when it is based on sampling
37
Q

What is Quality Assurance?

A

Builds quality into every stage of the production process (so, during).

38
Q

What are the advantages of Quality Assurance?

A
  • Quality issues are identified early so products may be reworked rather than rejected
  • The cause of defects is the focus so future quality issues may be better prevented
39
Q

What are the disadvantages of Quality Assurance?

A
  • Staff training and a skilled workforce is required so labour costs mat be increased
  • Reworking may lengthen the production process
  • Each worker may have different standards; no consistency
40
Q

What are Quality Circles?

A

Groups of 5-20 people who meet regularly to solve quality problems identified in the production process and also suggest improvements to current systems e.g., safety

41
Q

What are the advantages of Quality Circles?

A
  • Workers may be motivated as they are involved in decision making
    *Relevant and focused solutions are likely as workers are familiar with processes
42
Q

What are the disadvantages of Quality Circles?

A
  • Management need to have trust in their worker’s views and solutions
  • Meetings and structures must be organised regularly
43
Q

What is Total Quality Management (TQM)?

A

Organisation of the business with quality at its core and with every worker responsible for quality. The features include:
* Quality Circles
* Empowerment - Employees accountable
* Business - Products free of defects

44
Q

What are the advantages of Total Quality Management?

A
  • Quality in all aspects of the business improves efficiency
  • Customers receive a quality product
  • A culture of constant of constant improvement exists within the business
  • Motivated workforce
45
Q

What are the disadvantages of Total Quality Management?

A
  • All workers must be committed and receive significant continued training
  • Careful monitoring and control is required
46
Q

What is Kaizen?

A

Kaizen is linked with developing an innovative culture in business - another kind of quality assurance. It is based on a concept of continuous improvement. It encourages employees to find ways to improve processes

47
Q

How does quality management provide a competitive advantage?

A
  • Unit costs are likely to be low if a business takes a preventative approach.
  • Low costs may allow a business to reduce its selling price to compete.
  • Increased finance may be available to fund marketing activity to improve awareness.
  • High quality can be used in promotional activity and provide a USP in competitive markets.
  • Developing a USP can ease expansion into new markets due to the positive reputation created.

A-Level Business Theme 2 (5 decks)

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