2.4 Resource Management Flashcards
Batch production
A manufacturing process in which components or goods are produced in groups (batches). The manufacturing of a limited number of identical products.
Capital intensive
This is where output of the firm is made primarily using machine machinery/capital goods relative to the use of labour
Cell production
A method of manufacturing where employees are organised into multiskilled teams, with each team responsible for a particular part of the production process
Efficiency
The ability to minimise ways to therefore reducing the cost of production. Making the best use of its resources.
Flow production
The manufacturer of an item/product in a continuous process
Job production
A method of production where the production of a single good/service is carried out one at a time that involves producing this good/service to the specific requirements of the customer
Labour intensive production
A production method that requires a higher proportion of labour than capital
Productivity
Output per person/machine per period of time
Standardisation
Using uniform resources and activities or producing a uniform product
2.4.2
Capacity utilisation
The current output of a factory measured as a percentage of the total maximum potential output. Current output/maximum possible output X 100.
Downsizing
Involves reducing capacity, such as making employees redundant. This would reduce costs, such as wages.
Full capacity
The point where our business cannot produce any more output
Over utilisation
The position where a business is running at full capacity and straining resources
Under utilisation
The position where a business is producing at less than full capacity
2.4.3
Buffer stock
Buffer stock is the minimum level of stock that is held in reserve to protect against surges in demand or late delivery by suppliers
Inventory
The raw materials/work in progress held by business
Just in time (JIT)
A stock control system that organises operation so the items are stock arriving immediately before they are needed for production or sale
Lean production
A production method that involves using as few resources as possible in the production of a good or service. It can include concepts such as waste minimisation, just in time and TQM.
Re-order level
The level of current stock when the new orders are placed
Re-Order quantity
The amount of stock ordered when an order is placed
Stock
Items held by the business for future sales/processing such as raw materials/work in progress/finished products
Stock control
The optimum quantity of goods/components of business holds for the purpose of resale/production
Stock control diagram
Shows details of inventory movement such as minimum and maximum inventory levels, re-order level and quantity and lead times
Stock rotation
The flow of stock into and out of storage
Waste minimisation
Producing goods and services are given quality using as few resources as possible/identification of an impact of waste minimisation
Work in progress
Partially finished goods
2.4.4
Kaizen/continuous improvement
The Japanese practice which places emphasis on making small improvements in all business processes as it tries to achieve a culture of continuous improvement: good processes bring good results
Quality
A positive feature of a product that has no defects
Quality assurance
System where the product is trapped/tested each stage of the production process. It focuses on preventing faults with products during production.
Quality circles
Small groups of workers who meet regularly to discuss and resolve problems in production
Quality control
A method that uses quality inspectors as a way of finding any faults. Checking that final products are of a good enough standard, capable of doing what they were intended to do.
Quality management
The process of a business maintaining a desired level of excellence in a product/service by paying attention to each stage of the process
Total quality management/TQM
A right first time approach ensuring that every stage of production,products are checked for quality, rather than a sample, which should eliminate any defects
