2.4 Resource management Flashcards
pros of Job production
Highly flexible = bespoke
High profit margins
Cons of Job Production
- High unit costs
- labour intensive
pros of batch production
Econ of scale
standardised
Cons of batch production
- repetitive/demotivating
Pros of Flow production
low unit costs
high level productivity
Cons of Flow production
Huge set up costs
low motivation
breaks can be expensive
pros of cell production
- workers motivated as a team
- production more flexible
- movement of resources = minimised
Cons of cell production
Complex planning and coordination
How to improve productivity
- Specialisation
- Education/training
- motivating workers
- introducing capital/tech
calculation for Capacity utilisation
existing output/max possible output
x 100
pros of Cons of being under-capacity utilisation eg 60%
Pro
- opportunity to increase by taking on new orders - easier to grow
Con
- idle resources cost money
- unit cost rise
pros and cons of over capacity utilisation eg 115%
Pro
- opportunity for growth
Con
- employees over-worked
- mistakes more likely
how to increase capacity utilisation
- Sub-contract out production to other business
- employ workers on temporary contracts
How to decrease Capacity Utilisation
Rationalisation (redundancies/sale of assets)
Sub-contract work in from other business
What is the cost of poor stock management
- opportunity Cost (overstocking means wasting cash that could be invested)
- Financial costs (inventory)
- Too little Stock
Ways to minimise waste
- Store inventory appropriately
- adjust prices to clear stock
Pros of JIT (Just-In-Time) production
- Reduces Waste
- Reduces Costs (inventory)
Cons of JIT production
Supply chain Vulnerability
Pros of lean production
Quality Improvements (reduces anything unnecessary)
Cons of lean production
- Low margin for error
- Employee frustration
consequences of poor quality
- Damage brand reputation
- correcting poor quality can be very expensive
Pros of TQM (total Quality Management)
- Enhances brand Image
- less products defects
Cons of TQM production
- Requires large investment
- Employees may not want to change
Pros of Kaizen
Gradual improvement
Eliminate unnecessary steps/waste
Cons of Kaizen
- Resistance to change
- Slow to show change
