2.4 Resource management Flashcards
batch production
a method that involves completing one operation at a time on all units before performing the next
capital intensive
production methods that make more use of machinery relative to labour
capital productivity
the amount of output each unit of capital (e.g. one machine) produces
cell production
involves producing a family of products in a small self-contained unit (a cell) within a factory
division of labour
specialisation in specific tasks or skills by an individual
downsizing
the process of reducing capacity, usually by laying off staff
efficiency
producing a level of output where average cost is minimised
flow production
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
job production
a method of production that involves employing all factors to complete one unit of output at a time
kaizen
a Japanese term that means continuous improvement
labour intensive
production methods that make more use of labour relative to machinery
labour productivity
the amount of output each unit of labour produces
lean production
an approach to operations that focuses on the reduction of resource use
outsourcing
giving work to sub-contractors to reduce costs
production
the transformation of resources into goods or services
productivity
the output per unit of input per time period
specialisation
in business, the production of a limited range of goods
standardisation
using uniform resources and activities or producing a uniform product
capital utilisation
the use that a business makes of its resources
excess/surplus capacity
when a business has too many resources, such as labour and capital, to produce its desired level of output
full capacity
the point where a businesscannot produce any more output
mothballing
leaving machines, equipment or building space unused, but maintained, so they could be brought back into use if necessary
over-utilisation
the position where a business is running at full capacity and ‘straining’ resources
rationalisation
reducing the number of resources, particularly labour and capital, put into the production process, usually undertaken because a business has excess capacity
under-utilisation
the position where a business is producing at less than full capacity
buffer stocks
stocks held as a precaution to cope with unforeseen demand
kanban
a card or an object that acts as a signal to move or provide resources in a factory
lead time
the time between placing the order and the delivery of goods
re-order level
the level of current stock when new orders are placed
re-order quantity
the amount of stock ordered when an order is placed
stock rotation
the flow of stock into and out of storage
work-in-progress
partly finished goods
quality
features of a product that allow it to satisfy customers’ needs
quality assurance
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
quality chains
when employees form a series of links between customers and suppliers in business, both internally and externally
quality circles
groups of workers meeting regularly to solve problems and discuss work issues
quality control
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
statistical process control
the collection of data about the performance of a particular process in a business
total quality management (TQM)
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
