Brainscape's Knowledge GenomeTM

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


See full index

A LEVEL BUSINESS - TH > 2.4 resource management > Flashcards

2.4 resource management Flashcards

1
Q

what is production?

A

when raw materials or components are changed into products

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

what is job production?

A

-production of single unique units
-this could be bespoke for the customer

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

what type of business often utilises job production?

A

small specialist businesses

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

what type of workforce would be needed for job production?

A

a highly skilled workforce

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

examples of businesses that use job production:

A

-architects
-plumbers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

advantages of job production:

A

-specific to customer requirements
-associated with higher quality
-better motivation for employees
-flexible production method
(changes can be handled)
-high profit margins

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

disadvantages of job production:

A

-high unit costs
-labour intensive (high labour costs)
-requires close consultation with client
-usually need high skills (training)

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

what is batch production?

A

-standardised products are mass produced
-similar items are produced together
-each batch goes through one stage of production process before moving onto next stage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

how can batch production be flexible?

A

the system can be modified to adjust the specification

(e.g. changing the size, colour and features)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

examples of businesses that use job production:

A

baking

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

advantages of batch production:

A

-cost savings can be achieved by buying stock in bulk
-still allows customers some choice

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

disadvantages of batch production:

A

-the business must maintain higher stocks of raw materials
-tasks may become boring
(reduced motivation)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what is flow production?

A

-continuous manufacturing of standardised products, usually on a production line
-when one task is finished next task must start immediately
-high levels of automation

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

advantages of flow production:

A

-very low unit costs due to economies of scale
-high levels of productivity
-capital intensive which means it can work constantly (automated)
-less need for training & skills

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

disadvantages of flow production:

A

-high set-up costs
-low motivation of workers
-customisation is difficult
-production stops if flow stops

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what is process production?

A

a series of processes which raw materials go through

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

examples of process production

A

-oil refining
-cement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

advantages of process production:

A

-processes can be automated
(reduce unit cost)
-large quantities can be produced

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

disadvantages of process production:

A

-expensive
(equipment / facilities)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

what is cell production?

A

-workers are organised into multi-skilled teams, with each team responsible for a particular part of the production process

(produce an entire product or part of a products)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

advantages of cell production:

A

-workers are more motivated (teamwork)
-production is more flexible
-more efficient (workers share their skills and expertise)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

disadvantages of cell production:

A

-requires extensive reorganisation of production processes
-teams efficiency may be reduced by weaker workers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

factors that affect choice of production method:

A

-the level of output required
-whether the product is standardised or customised
-the level of automation used in production (amount of capital)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

what is a production process?

A

the steps followed to convert an input into an output

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

2 types of focus for production

A

-labour intensive
-capital intensive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

what does labour intensive mean?

A

high level of human input in the production process

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

what does capital intensive mean?

A

high level of capital investment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

what is productivity?

A

the amount of output that can be produced with a given input in a specified time period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

what does maximising productivity entail?

A

getting the most out of the resources available to the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

what is a way to measure productivity of workers?

A

-calculating labour productivity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

what is labour productivity?

A

the output per employee in a certain time period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

how to calculate labour productivity:

A

total output
——————
number of employees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

what is a unit cost?

A

the costs incurred in producing one product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

how to calculate unit cost:

A

total cost of production
————————————
total number of production units

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

methods of improving productivity:

A

-training (improving skills of the workforce)
-capital intensity (introducing automation to increase output)
-motivating workers (happy workers work harder and faster)
-better quality raw materials

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

when do economies of scale arise?

A

when unit costs fall as output increases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

benefit of increasing productivity:

A

cost per unit is reduced → increased profit margin

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

evaluation of increasing the output of a worker:

A

-productivity and unit costs may increase in the short term
-high levels of output can cause stress and burnout

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

what can a focus on output compromise?

A

-quality & customer service
-mistakes and faults are also more likely to occur, leading to product returns and complaints

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

internal economies of scale

A

arise from the increased output of the business itself

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

external economies of scale

A

occur within an industry (all competitors benefit)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

unit costs with labour intensive businesses

A

staff

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

unit costs with capital intensive businesses

A

equipment & machinery

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

benefits of capital intensity:

A

-greater opportunities for economies of scale
-potential for better productivity
-better quality & speed
-lower labour costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

drawbacks of capital intensity:

A

-significant investment
-may generate resistance to change from labour force

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

advantages of labour intensity

A

-low cost labour
-labour is a flexible resource (through multi-skilling and training)
-

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

drawbacks of labour intensity:

A

-greater risk of problems with employee/employer relationship
-need for continuous investment in training

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

define efficiency

A

how well a business uses its resources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

what happens when a business is running efficiently?

A

there is minimal waste

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

relationship between productivity and efficiency:

A

-greater productivity means the workforce is more efficient
-efficiency across the business allows more resources to be devoted to production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

benefits of improved efficiency:

A

-resources can be reallocated
-opportunity to explore new ventures
-ability to charge lower prices and therefore improve competitiveness
-unit costs decrease

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

what is waste?

A

anything that does not add value to the product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

7 types of waste:

A

-transport
-inventory
-defects
-waiting
-overprocessing
-overproduction
-motion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

waste: transport

A

unnecessary movement of the product or materials

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

waste: inventory

A

too much stock → obsolete

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

waste: defects

A

faulty products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

waste: waiting

A

waiting for processes to finish before others can begin

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

waste: overprocessing

A

adding features that do not add value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

waste: overproduction

A

making products that cannot be sold easily

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

waste: motion

A

unnecessary movement of people

61
Q

what is capacity?

A

a measure of how much output a business can theoretically achieve in a given period

62
Q

when is a business said to be at 100% capacity utilisation?

A

when a business is unable to increase output

63
Q

implications of capacity being dynamic :

A

-when a machine is having maintenance, capacity is reduced
-by working more production shifts, capacity can be increased
-capacity needs to take account of seasonal or unexpected changes in demand
-ice-cream factories in the UK needed to quickly increase capacity during a heat wave

64
Q

examples of capacity:

A

-a fast-food outlet may be able to serve
1,000 customers per hour
-a call-centre may be able to handle
10,000 calls per day
-a football stadium could seat no more than 45,000 fans at each match
-a car production line may be able to complete
50,000 cars per year

65
Q

define capacity utilisation

A

the percentage of potential output levels that is being achieved

66
Q

capacity utilisation formula:

A

actual level of output/max possible output
x 100

67
Q

why capacity utilisation matters?

A

it is a useful measure of productive efficiency since it measures whether there are idle (unused) resources

68
Q

why do businesses try to increase output?

A

-average production costs tend to fall as output rises (unit costs are reduced)

69
Q

when is a high level of capacity utilisation required?

A

a business has a high break-even output

70
Q

the costs of capacity:

A

-equipment: (production line)
-facilities: (building, rent)
-labour: (wages and salaries)

71
Q

why do most businesses operate below
capacity?

A

-lower than expected market demand
-a loss of market share
-seasonal variations in demand
-recent increase in capacity
-maintenance and repair programmes

72
Q

disadvantages of operating at low capacity utilisation:

A

-higher unit costs
-less likely to reach breakeven output
-capital tied up in under-utilized
assets

73
Q

disadvantages of operating at high capacity utilisation:

A

-negative effect on quality
↳ production is rushed, less time for quality control
-employees suffer (added workloads & stress)
-de-motivating if sustained for too long
-production equipment may require repair

74
Q

how to increase capacity utilisation?

A

-sub-contract some production activities
-reduce time spent maintaining production equipment
-offer overtime pay to the workforce.
-employ workers on temporary contracts

75
Q

what is sub contracting?

A

hiring employees from another company to work for you

76
Q

how to decrease capacity utilisation:

A

-rationalisation (redundancies or sale of assets)
-sub-contract in work from another business

77
Q

what is stock?

A

the raw materials, work-in-progress and finished goods held by a firm

78
Q

what are raw materials?

A

-bought from suppliers
-used in production process

79
Q

what is work in process?

A

semi or part-finished production

80
Q

what are finished goods?

A

completed products ready for sale or distribution (products)

81
Q

key reasons to hold stock:

A

-enable production to take place
-satisfy customer demand
-precaution against delays from
suppliers
-provide a buffer between production
processes

82
Q

working capital & stock

A

holding stock ties up cash in working capital

83
Q

long holding times & stock

A

-the longer stocks are held, the greater risk they cannot be used or sold
(perishable items have expiry dates)

84
Q

cost of storage

A

more stocks require large storage space and possibly extra employees and equipment to control and handle them

85
Q

interest costs

A

holding stocks means tying up capital (cash) on which the business may be paying interest

86
Q

obsolescence risk

A

yhe longer stocks are held, the greater is the risk that they will become obsolete

87
Q

why use stock control charts?

A

to maintain stock levels so that the total costs of holding stocks is minimised

88
Q

what is the minimum level (stock control chart)?

A

minimum amount of product the business would want to hold in stock

89
Q

what is the maximum level (stock control chart)?

A

max level of stock a business can or wants to hold

90
Q

what is the re order level (stock control chart)?

A

acts as a trigger point, so that when stock falls to this level, the next supplier order should be placed

91
Q

what is the lead time (stock control chart)?

A

amount of time between placing the order and receiving the stock

92
Q

what is buffer stock (stock control chart)?

A

an amount of stock held as a contingency in case of unexpected orders/delays from suppliers so that such orders can be met

93
Q

how lead time affects re ordering stock:

A

higher lead times may require a higher re-order level

94
Q

how demand affects re ordering stock:

A

higher demand normally means higher re-order levels

95
Q

advantages for low stock inventory:

A

-lower stock holding costs (e.g. storage)
-lower risk of stock obsolescence
-less capital (cash) tied up in working capital - can be used elsewhere in the business

96
Q

advantages of high stock inventory

A

-production fully supplied - no delays
-discount for bulk buying (lower unit costs)
-better able to handle unexpected changes in demand or need for higher output

97
Q

4 ways to minimise stock waste

A

-store inventory appropriately
-rotate stock
-pricing strategies
-computerised stock management systems to track all inventory

98
Q

minimising waste through stock rotation

A

old stock gets used sold first

99
Q

minimising waste through pricing strategies

A

adjust prices to clear stock through sales promotions

100
Q

what is lean production?

A

practices that reduce waste in the operational process.

101
Q

lean management should remove…

A

anything that isn’t necessart

102
Q

key features of lean production:

A

less time
↳ the production process is organised in the most efficient way

fewer materials
↳ focus on waste reduction

less labour
↳ lean production is typically capital intensive

space required for prod. is reduced
↳ just in time stock management

103
Q

what is the use of lean production likely to lead to and why?

A

a competitive advantage

lower unit costs due to minimal wastage
↳ prices may be lower than those offered by competitors

reduce lead times
↳ better customer satisfaction

104
Q

main forms of lean production

A

reducing defects, time wasted and inventory levels.

105
Q

which strategies does lean production use?

A

Just in Time stock control and Kaizen

106
Q

what is just in time (JIT) stock management?

A

stock levels are kept to a minimum

-raw materials are ordered as required & delivered by suppliers at the moment that they are to be used

107
Q

suppliers & JIT

A

-close relationships with suppliers need to be developed
-suppliers may need to be in close proximity

108
Q

which businesses are JIT particularly useful for and why?

A

businesses that operate in dynamic markets:

-products may need frequent design changes that require different components
-holding large amounts of stock risks wastage through obsolescence

109
Q

advantages of JIT

A

-stockholding costs (storage costs) are minimised

-close working relationships are developed with a small number of trusted suppliers

-cash flow is improved as money is not tied up in stock

110
Q

disadvantages of JIT

A

-bulk buying economies of scale are not generally possible
-the ability to respond to unexpected increases in demand is reduced
-unreliable suppliers (e.g. late or poor quality deliveries) can quickly halt production

111
Q

what is kaizen?

A

taking continuous steps to improve productivity through the elimination of all types of waste in the production process

112
Q

how is kaizen long term?

A

-changes are small and ongoing rather than significant one-off’s
-they are constantly reviewed to ensure that they achieve the desired positive impact on productivity and always focused on meeting customers’ needs

113
Q

kaizen & staff

A

-all workers must be actively involved in making improvements, not just management
-ongoing training and development is vital

114
Q

methods of kaizen

A

-zero defects in manufacturing
-high levels of automation
-high levels of cooperation between workers and management
-employees are likely to work in teams and be empowered to work creatively
-staff training
-computer inventory management systems

115
Q

define quality

A

the extent to which a product or operation meets its customers’ requirements & needs

116
Q

the importance of quality:

A

-the key to meeting customer needs
-can help a business differentiate & gain competitive advantage
-markets are highly competitive so customers are more:
↳ knowledgeable & demanding
↳ able to share information about poor quality

117
Q

4 aspects of quality:

A

-buying process
-product reliability
-cost of ownership
-after-sales service

118
Q

examples of poor quality

A

-product breaks
-doesn’t execute function
-product is delivered late
-unresponsive customer service

119
Q

consequences of poor quality

A

-loss of customers
-bad brand reputation (customers may tell others about their bad experience)
-cost of reworking or remaking product
-costs of replacements or refunds
-wasted materials
-legal costs??

120
Q

methods of achieving quality

A

-clear understanding of customer needs
-train employees in quality procedures
-invest in technology
-work with high quality suppliers
-use quality management methods
(eg: control & assurance)

121
Q

how might quality be measured?

A

-customer service ratings
-rejected output from production
-market surveys
-product returns

122
Q

what is quality management?

A

controlling activities to ensure that products and services need their purpose & meet customer needs

123
Q

two main approaches of quality management:

A

-quality control
-quality assurance

124
Q

define quality control

A

inspecting the quality of output at the end of the production process

125
Q

what is quality control about?

A

identifying the faults of products

126
Q

how many people would be involved in quality control?

A

a small amount, likely one

127
Q

advantages of quality control:

A

-quality specialists are employed to check standards
-inexpensive and simple way to check that output is fit for purpose

128
Q

disadvantages of quality control:

A

-the rejection of finished goods is a significant waste of resources
-there is little focus on the cause of defects

129
Q

define quality assurance

A

inspecting the quality of production throughout the process

130
Q

what is quality assurance about?

A

the process

131
Q

how many people would be involved with quality assurance?

A

all employeees

132
Q

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 prevented

133
Q

disadvantages of quality assurance

A

-staff training and a skilled workforce is required so labour costs may be increased
-reworking may lengthen the production process

134
Q

difficulties in improving quality

A

-customers’ perception of quality is constantly changing
-improving quality can add more work so might be naturally opposed by the workforce
-measuring quality can be difficult and expensive

135
Q

what is total quality management (TQM)?

A

a system of management based on quality being the priority throughout the organisation

136
Q

who is involved in TQM?

A

-all employees are concerned with quality at every stage of production
-quality is ensured by workers and not inspectors

137
Q

which 5 principles underpin TQM?

A

-quality chains
-quality policies
-controls
-team work
-customer views

138
Q

quality chains (TQM)

A

-each person in the production chain is a customer of the preceding process)
-as such, their needs need to be fully met.

139
Q

quality policies (TQM)

A

clear policies are established on the expectations of all employees and how they should achieve the highest quality

140
Q

controls (TQM)

A

a range of controls are put in place to guarantee quality is achieved

141
Q

team work (TQM)

A

people work in teams to solve problems and identify opportunities

142
Q

customer views (TQM)

A

feedback from customers is taken into account to improve the process and product

143
Q

advantages of TQM

A

-puts customer at heart of production process
-less wasteful than throwing out defective finished products
-eliminates cost of inspection
-

144
Q

disadvantages of TQM

A

-all workers must be committed and receive significant continued training
- areful monitoring and control is required

145
Q

what are quality circles?

A

groups of workers meet regularly to solve quality problems identified in the production process

146
Q

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

147
Q

disadvantages of quality circles

A

-management need to have trust in workers’ views and solutions
-meetings and structures must be organised regularly

148
Q

quality and competitive advantage

A

-quality adds value to products
-high levels of quality will allow a business to charge a premium price & ensure customers are satisfied
-

149
Q

how can a business maintain competitive advantage through quality?

A

-continually improve quality and adapt to the needs of customers (as quality is a highly subjective concept)

A LEVEL BUSINESS - TH (7 decks)

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