2.4 Resource Management

Question 1

What is job production?

Answer 1

One-off or small number of items produced, meets the specific requirement’s of the consumers
* Examples: - Plumbers

Question 2

Advantages of job production

Answer 2

• Customer requirements and changes can be handled
• Associated with higher quality
• Employees can be better motivated - more job satisfaction
• A flexible production method

Question 3

Disadvantages of job production?

Answer 3

• high Individual cost of one unit
• Often labour-intensive = high labour costs
• Requires close consultation with the client
• Usually reliant on high skills

Question 4

What is batch production?

Answer 4

Similar items are produced together. Each batch goes through one stage of production process before moving onto next stage

Question 5

Aims of batch production

Answer 5

Achieve better use of equipment and so produce good quality products more economically than manufacturing them individually

Question 6

Advantages of batch production

Answer 6

• batch reduce unit costs
• customers have some choice
• Allows a firm to handle unexpected orders
• greater quality control

Question 7

Disadvantages of batch production

Answer 7

• timely to switch production of one batch to another
• high inventory costs
• Tasks are repetitive - reducing motivation & efficiency

Question 8

what is flow production

Answer 8

product moves continuous through the production process. high volumes are produced of the same product

Question 9

advantages of flow production

Answer 9

• lower unit costs
• manufacture large identical quantities
• capital intensive - so it works constantly
• less need for training and skills

Question 10

Disadvantages of flow production

Answer 10

• reliant on high quality machinery
• High inventory costs
• Goods are mass produced - less differentiation
• Production is shut down if flow is stopped

Question 11

what is cell production?

Answer 11

has the flow production line split into a number of units. each “cell” is responsible for part of the product

Question 12

advantages of cell production

Answer 12

• closeness of cell members, improve communication avoiding confusion
• greater work motivation
• workers become skilled & adaptable for future needs
• quality improves as each cell has ownership for quality in their area

Question 13

disadvantages of cell production

Answer 13

• company culture has to encourage trust & participation
• may not allow a firm to use machinery

Question 14

definition of capacity

Answer 14

maximum output that a business can produce in a given period with the available resources

Question 15

why is capacity important?

Answer 15

it allows the company to match the demands of the customers

Question 16

definition of spare capacity?

Answer 16

when a business is not making full use of its available capacity, there are spare factors of production including land, labour and capital

Question 17

capital utilization formula

Answer 17

current output/ maximum possible output x 100

Question 18

drawbacks of underutilization of capacity

Answer 18

• inefficiency - not producing maximum capacity, firms cant exploit economies of scale. may lead to an increase in average costs
• loss of market share - operating less than full capacity, result in reduction of sales in a business

Question 19

benefit of underutilization of capacity

Answer 19

more flexibility - its level of output can change when needed, and firm has time to fix machines without stopping production

Question 20

drawbacks of overutilization of capacity

Answer 20

• maintenance - not enough time fro machines to be maintained. machine may break down, can ruin reputation
• inflexible - unable to increase further output, cant provide for any unexpected orders
• staff- under excessive pressure, make more mistakes & unhappy

Question 21

benefit of overutilization

Answer 21

• average costs of production fall and this would result in the firm becoming more competitive

Question 22

what factors can improve capacity utilization

Answer 22

• reduce capacity
• increase sales
• outsourcing

as it allows the business to increase its output

Question 23

JIT - just in time

Answer 23

• holds little stock
• reduces waste of materials
• cheaper costs of storage, so can charge a lower price on goods
• need frequent deliveries and if the supplier is unreliable the firm may run out of stock

Question 24

what is quality control

Answer 24

checks goods after they’ve been made.
- quality control inspectors check others work
- eliminates faulty goods

Question 25

what is quality assurance

Answer 25

introduce checks throughout the production process to prevent errors from the beginning. each product is tested at each stage of the production process
- aims to get it right first time
- employees check their own work

Question 26

what is total quality management

Answer 26

quality is the centre of everything a business does. every employee focuses on quality to improve overall quality of the products

Question 27

advantages and disadvantages of TQM

Answer 27

• boots a firms reputation
• leads to less faulty products
• takes a long time to instil
• demotivate staff- s they have to put a lot of effort in
• expensive

Question 28

what is a quality circle

Answer 28

they aim to identify and solve quality problems by meeting at regular intervals. it increases motivation as all staff are involved

Question 29

what is kaizen (continuous improvement)

Answer 29

lean production where employees improve their work all the time, this reduces waste