2.4 Resource Management

Question 1

Productivity vs efficiency

Answer 1

Quantity produced per input vs getting the most out of your resources

Question 2

4 Methods of production

Answer 2

Job
Batch
Cell
Flow

Question 3

Job production

Answer 3

Create one-off product using labour intensive methods

Question 4

Batch production

Answer 4

Creating a small-group of identical products

Question 5

Cell production

Answer 5

Production goes through individual stages

Question 6

Flow production

Answer 6

Continuous production

Question 7

When to decide what method of production is best?

Answer 7

Flow/cell - when costs better kept low

Job/batch - when quality or customisation is required

Question 8

Capital intensive production

Answer 8

Using machinery to manufacture

Question 9

labour intensive production

Answer 9

Using humans to manufacture

Question 10

Capacity Utilisation

Answer 10

The percentage of the maximum available output being used

Question 11

how to calculate capacity utilisation

Answer 11

(Actual output / max output ) x 100

Question 12

Why is capacity utilisation important?

Answer 12

Fixed costs can be spread across more units, lowering unit costs

Question 13

Why not have 100% capacity utilisation?

Answer 13

be able to respond to increases in demand

Question 14

How do you improve capacity utilisation?

Answer 14

Increase workforce hours
Outsource production
Reduce maintenance

Question 15

On a stock-time graph, what are the 3 lines?

Answer 15

max stock
Re-order level
Buffer stock level

Question 16

What is lead time?

Answer 16

Time between ordering and receiving stock

Question 17

benefits of Just In Time stocks?

Answer 17

Reduces waste
Reduces storage costs

Question 18

Drawbacks of Just In Time stocks?

Answer 18

Relies heavily on suppliers

Question 19

Lean production

Answer 19

Approach where there is a focus on cutting waste while not negatively affecting quality.

Question 20

Quality control

Answer 20

Checking the quality of a product at the end of it’s production

Question 21

Benefit of quality control

Answer 21

Easy as less employees need to be trained

Question 22

Drawbacks of quality control

Answer 22

High wastage costs as errors are only found at the end

Question 23

Quality assurance

Answer 23

Checking the quality of the product during the production process

Question 24

benefits of quality assurance

Answer 24

In depth
Identify problems earlier, reduce waste

Question 25

Drawbacks of quality assurance

Answer 25

Time consuming
Takes lots of money to train staff

Question 26

Total quality management

Answer 26

Where maintaining quality is part of the culture of the organisation

Question 27

Kaizen

Answer 27

Always trying to find new ways to improve