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business a level > 2.4 resource management > Flashcards

2.4 resource management Flashcards

1
Q

what is job production?

A
  • a method of production that involves employing all factors to complete one unit of output at a time
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2
Q

what are advantages of job production?

A
  • customer requirements and changes can be handled
  • associated with higher quality
  • employees can be better motivated
  • a flexible job production method`
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3
Q

what are disadvantages of job production?

A
  • individual cost of one unit may be high
  • higher labour costs
  • usually reliant on high skill
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4
Q

what is batch production?

A
  • method of production that involves completing one operation at a time on all units before performing the next
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5
Q

what does batch production involve?

A
  • similar items are produced together

- each batch goes through one stage of production before going on to the other

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6
Q

what are the aims of batch production?

A
  • concentrate aims

- achieve better use of equipment

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7
Q

what are advantages of batch production?

A
  • cost saving
  • still allows customers some choice
  • products produced by specialist workers
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8
Q

what are disadvantages of batch production?

A
  • takes time to switch production from one batch to another

- requires business to maintain higher stock of raw materials

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9
Q

what is flow production?

A
  • large scale production of standard product, where each operation on a unit is performed continuously one after the other, usually on a production line
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10
Q

what are advantages of flow production?

A
  • cost per unit is decreased
  • suitable for manufacture of large quantities
  • less need for training and skills
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11
Q

what are disadvantages of flow production?

A
  • very long set up time
  • high raw material costs
  • production is shut down if flow is stopped
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12
Q

what is cell production?

A
  • producing a family of products in a small self contained unit within a factory
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13
Q

what is production?

A
  • the transformation of resources into goods and services
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14
Q

what is labour productivity?

A
  • the amount of output each unit of labour produces
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15
Q

what is productivity?

A
  • the output per unit of input per time period
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16
Q

what is the formula for labour productivity?

A

average number of employees

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17
Q

what factors effect productivity?

A
  • training
  • motivation
  • working practices
  • capital productivity
  • labour flexibility
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18
Q

what is efficiency?

A
  • producing a level of output where average cost is minimised
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19
Q

what is downsizing?

A
  • reducing capacity i.e. laying of workers and closing unprofitable divisions
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20
Q

what are the advantages of downsizing?

A
  • cost saving and increased profit
  • a leaner, more competitive operation
  • removal of unprofitable parts of business
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21
Q

what is internal economies of scale?

A
  • arise form the increased output of the business itself
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22
Q

what is external economies of scale?

A
  • occur within an industry e.g. all competitors benefit
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23
Q

what is buying economies?

A
  • buying in greater quantities usually results in a lower price (bulk buying)
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24
Q

what is technical economies of scale?

A
  • use of specialist equipment or process to boost productivity
25
Q

what is the formula for average cost per unit?

A

total output in period

26
Q

how does a firm benefit from external economies of scale?

A
  • having specialised suppliers close by
  • access to research and development facilities
  • pod of skilled labour to choose from
27
Q

what is lean production?

A
  • a approach to operating that focuses on the reduction of resource use
28
Q

what does lean production help do?

A
  • raise productivity
  • reduces cost
  • reduces number of defective items
  • improve reliability and speeds up product design
29
Q

what is kaizen?

A
  • continuous improvement
30
Q

what is labour intensive?

A
  • production relies on using labour resources
31
Q

what is capital intensive?

A
  • production relies on using capital resources

- e.g. machinery

32
Q

what is capacity utilisation?

A
  • the proportion % of maximum possible output that is actually produced over a specific period of time
33
Q

what is the formula for capacity utilisation?

A

current output
—————— X 100
maximum possible output

34
Q

why does capacity utilisation matter?

A
  • useful measure of productive efficiency
  • measure whether there are unused resources
  • high utilisation can reduce unit costs, making a business more competitive
35
Q

what are the key costs in capacity?

A
  • equipment
  • facilities
  • labour
36
Q

why do most businesses operate below capacity?

A
  • lower than expected market demand
  • loss of market share
  • seasonal variations in demand
  • recent increase in capacity
37
Q

what are the danger of operating below capacity?

A
  • higher unit costs
  • less likely to reach breakeven output
  • capital tied up in under utilized
38
Q

how can a business operate at over 100% utilisation?

A
  • increase workforce hours

- extra shifts, encourage overtime

39
Q

what are problems working at high capacity?

A
  • negative effect on quality
  • as production is rushed, less time for quality control
  • employees suffer, added stress and workload
40
Q

what are ways of improving utilisation?

A
  • reduce capacity
  • increase sales
  • increase usage
41
Q

what is rationalising?

A
  • involves reducing excess capacity by getting rid of resources that the business can do without
42
Q

what is quality?

A
  • about meeting the needs and expectations of customers, through a product or service
43
Q

why is quality important?

A
  • gain customer satisfaction
  • enable them to charge premium price
  • reduce costs of less returns
44
Q

what are the 2 types of quality management?

A
  • quality control

- quality assurance

45
Q

what is quality control?

A
  • process of inspecting goods at the end of production to ensure they meet the required quality standards
46
Q

what is quality assurance?

A
  • process that ensures quality is met at every stage of production to the requirements of customers
47
Q

what is total quality management?

A
  • an attitude to quality where the aims are zero defects and total customer satisfaction
48
Q

what are advantages of low stock levels?

A
  • lower stock holding costs
  • lower risk of stock obsolescence
  • less capital tied up in working capital
49
Q

what are advantages of high stock levels?

A
  • production fully supplied, no delays

- potential for lower unit costs by bulk buying

50
Q

what is just in time?

A
  • stock required for production arrives just as it is needed
51
Q

what are implications of just in time?

A
  • no need for buffer stock
  • stock holding costs are minimised
  • lead times are very short
  • requires highly reliable suppliers
52
Q

what is the formula for working capital?

A

current assets - current liabilities

53
Q

what is stock?

A
  • raw materials
  • work in progress
  • finished goods
54
Q

what are stock control charts?

A
  • the overall objective of stock control is to maintain stock levels to that the total costs of holding stock is minimised
55
Q

what is buffer stock?

A
  • stock held as a precaution to cope with unforeseen demand
56
Q

what is Kanban?

A
  • a card or an object that acts as a signal to move or provide resources in a factory
57
Q

what is lead time?

A
  • the time between placing the order and the delivery of goods
58
Q

what is re-order level?

A
  • the level of current stock when new orders are placed
59
Q

what is stock rotation?

A
  • the flow of stock into and out of storage

business a level (24 decks)

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