2.4 Resource management

Question 1

batch production

Answer 1

a method that involves completing one operation at a time on all units before performing the next

Question 2

capital intensive

Answer 2

production methods that make more use of machinery relative to labour

Question 3

capital productivity

Answer 3

the amount of output each unit of capital (e.g. one machine) produces

Question 4

cell production

Answer 4

involves producing a family of products in a small self-contained unit (a cell) within a factory

Question 5

division of labour

Answer 5

specialisation in specific tasks or skills by an individual

Question 6

downsizing

Answer 6

the process of reducing capacity, usually by laying off staff

Question 7

efficiency

Answer 7

producing a level of output where average cost is minimised

Question 8

flow production

Answer 8

large-scale production of a standard product, where each operation on a unit os performed continuously one after the other, usually on a production line

Question 9

job production

Answer 9

a method of production that involves employing all factors to complete one unit of output at a time

Question 10

kaizen

Answer 10

a Japanese term that means continuous improvement

Question 11

labour intensive

Answer 11

production methods that make more use of labour relative to machinery

Question 12

labour productivity

Answer 12

the amount of output each unit of labour produces

Question 13

lean production

Answer 13

an approach to operations that focuses on the reduction of resource use

Question 14

outsourcing

Answer 14

giving work to sub-contractors to reduce costs

Question 15

production

Answer 15

the transformation of resources into goods or services

Question 16

productivity

Answer 16

the output per unit of input per time period

Question 17

specialisation

Answer 17

in business, the production of a limited range of goods

Question 18

standardisation

Answer 18

using uniform resources and activities or producing a uniform product

Question 19

capital utilisation

Answer 19

the use that a business makes of its resources

Question 20

excess/surplus capacity

Answer 20

when a business has too many resources, such as labour and capital, to produce its desired level of output

Question 21

full capacity

Answer 21

the point where a businesscannot produce any more output

Question 22

mothballing

Answer 22

leaving machines, equipment or building space unused, but maintained, so they could be brought back into use if necessary

Question 23

over-utilisation

Answer 23

the position where a business is running at full capacity and ‘straining’ resources

Question 24

rationalisation

Answer 24

reducing the number of resources, particularly labour and capital, put into the production process, usually undertaken because a business has excess capacity

Question 25

under-utilisation

Answer 25

the position where a business is producing at less than full capacity

Question 26

buffer stocks

Answer 26

stocks held as a precaution to cope with unforeseen demand

Question 27

kanban

Answer 27

a card or an object that acts as a signal to move or provide resources in a factory

Question 28

lead time

Answer 28

the time between placing the order and the delivery of goods

Question 29

re-order level

Answer 29

the level of current stock when new orders are placed

Question 30

re-order quantity

Answer 30

the amount of stock ordered when an order is placed

Question 31

stock rotation

Answer 31

the flow of stock into and out of storage

Question 32

work-in-progress

Answer 32

partly finished goods

Question 33

quality

Answer 33

features of a product that allow it to satisfy customers’ needs

Question 34

quality assurance

Answer 34

a method of guaranteeing that quality standards are met, it involves all employees in a business contributing to and being responsible for ensuring quality at all stages in the production process

Question 35

quality chains

Answer 35

when employees form a series of links between customers and suppliers in business, both internally and externally

Question 36

quality circles

Answer 36

groups of workers meeting regularly to solve problems and discuss work issues

Question 37

quality control

Answer 37

making sure that the quality of a product meets specified quality performance criteria, it involves a quality inspector checking other people’s work and the product itself after production had taken place

Question 38

statistical process control

Answer 38

the collection of data about the performance of a particular process in a business

Question 39

total quality management (TQM)

Answer 39

a managerial approach that focuses on quality and aims to improve the effectiveness, flexibility and competitiveness of the business, it involves all employees being responsible for checking quality of each other’s work