2.4 Resource Management Flashcards
What are the 4 Methods of production?
1)Job production
2)Batch production
3)Flow production
4)Cell production
What is job production?
Producing one item at a time, bespoke to the customer.
What are the three advantages of job production?
1)High quality product
2)Motivated and highly skilled workers
3)products can be sold at a high price
What are the two disadvantages of job production?
1)Production is slow
2)Labour costs are high
What is batch production?
Groups of the same product are produced, before moving on to a group of different products.
What are the three advantages of batch production?
1)production can be changed to meet customer needs or fluctuations in demand
2)employees specialise so become good at their job
3)lower skilled workforce, require lower wages
What are the three disadvantages of batch production?
1)small batches carry higher average unit costs.(EOS)
2)workers may be less motivated with repetitive work.
3)idle time between batches needs to be managed as this is wastage.
What is flow production?
Continuous manufacturing of standardised products, usually on a production line.
What are the three advantages of flow production?
1)Low unit costs due to economies of scale
2)Rapid production
3)Usually highly automated(improved quality)
What are the three disadvantages of flow production?
1)low staff motivation due to repetitive tasks
2)Capital equipment can be expensive to purchase
3)Break downs can be costly as it interrupts the whole production line.
What is cell production?
Workers being organised into multi-skilled teams, with each team responsible for a particular part of the production process.
What are the two advantages of cell production?
1)more efficient than other methods as workers share their skills and expertise
2)motivation is usually high as employees work as a team
What are the three disadvantages of cell production?
1)tension in the cell or between cells if work gets competitive.
2)teams efficiency may be reduced by weaker workers
3)huge investment in machinery for each cell.
What is the formula for labour productivity?
Output/Number of workers
What is the formula for capital productivity?
Output/Number of machines
What are the four factors that influence productivity?
1)Employee motivation
2)Skills, education and training staff
3)Business organisation
4)Investment in capital equipment
What is the formula for efficiency?
Total costs/Number of units
What are the factors affecting efficiency?
1)relocation or downsizing
2)Investment in capital equipment
3)Outsourcing
4)adoption of lean production techniques(reduced waste)
What is labour intensive production?
The use of physical labour in the production of goods.
What is capital intensive production?
The use of machinery and technology in the production of goods or services.
What are the three advantages of capital intensive production?
1)low cost production where output is high
2)machines are consistent and precise
3)machines can run without waste
What are the three disadvantages of capital intensive production?
1)significant maintenance costs
2)Breakdowns can severely delay production
3)may not provide flexibility in production
What are the three advantages of labour intensive production?
1)Low cost production where labour costs are low
2)provides opportunities for workers to be creative
3)workers are flexible
What are the three disadvantages of labour intensive production?
1)Workers may be unreliable and need regular breaks
2)Incentives may be needed to motivate staff
3)training costs can be significant
What is capacity utilisation?
The measure of the level to which a businesses assets are being used to produce output?
What is the formula for calculating capacity utilisation?
Current output/Maximum possible output x 100
What is under utilisation of capacity?
When firms are not maximising the use of their resources?
What is over utilisation of capacity?
Overproduction of one good so may not have the flexibility to respond to new consumer preferences.
What are the five ways of improving capacity utilisation?
1)Outsourcing
2)Increase usage
3)Increase sales
4)Redeployment
5)Reduce capacity
What is lead time on a stock control diagram?
The length of time from the point of stock being ordered from supplier to it being delivered.
What is buffer stock?
A quantity of goods/raw materials kept in case of stock shortages.
What are the four advantages of holding buffer stocks?
1)Stability in supply
2)Price stabilisation
3)Raw materials security
4)Competitive advantage
What are the three disadvantages of holding buffer stock?
1)Cost
2)Risk of obsolescence
3)Opportunity cost
What is ‘just in time’ (JIT) stock management?
A process in which raw materials are not stored onsite.
What are the four advantages of just in time stock management?
1)Stockholding costs minimised
2)relationships are developed with suppliers
3)Cash flow is improved
4)Unused storage space is available
What are the five disadvantages of just in time stock control?
1)Bulk buying is generally not possible
2)ability to change to respond to unexpected changes in demand decreases
3)Unreliable suppliers
4)Administrative cost of ordering frequently increases
What is perishable stock?
Stock that can deteriorate overtime and will need to be thrown away if so.(food and medicines)
What is lean production?
The minimisation of resources used in production.
What are the 4 methods of quality management?
1)Quality control
2)Quality assurance
3)Quality circles
4)Total quality management
What is quality control?
Inspecting the quality at the end of the production process?
What are the 2 advantages of quality control?
1)specialists are employed to check standards?
2)it is inexpensive and simple
What are the 2 disadvantages of quality control?
1)The rejection of finished goods is a waste of resources
2)there is little focus on the cause of defects
What is quality assurance?
Inspecting the quality of production throughout the production process?
What are the advantages of quality assurance?
1)Issues are identified early so products may be reworked rather than rejected
2)the cause of defects is the focus so future quality issues may be prevented
What are the two disadvantages of quality assurance?
1)Staff training and a skilled workforce is required so labour costs may increase
2)reworking may lengthen the production process
What are quality circles?
Groups of workers meet regularly to solve quality problems identified in the production process.
What are the 2 advantages of quality circles?
1)workers may be motivated as they are involved in decision making
2)relevant and focussed solutions are likely as workers are familiar with processes
What are the 2 disadvantages of quality circles?
1)Management need to have trust in workers views and solutions
2)Meetings and structures must be organised regularly
What is total quality management?
The organisation of the business with quality at its core and with every worker responsible for quality.
What are the 2 advantages of total quality management?
1)quality in all aspects of the business improves efficiency
2)a culture of constant improvement exists within the business
What are the 2 disadvantages of total quality management?
1)all workers must be committed and receive significant continued training
2)careful monitoring and control is required
What is Kaizen?
A business taking continuous steps to improve reductive through the elimination of all types of waste in the production process.
