2.4 - Resource Manangement Flashcards
When is a product good quality
When it meets the needs and expectations of the customer
If a business can develop a reputation for high quality..
Then it may be able to create an advantage over its competitors. It can help a business to differentiate its products from the competition.
Examples of poor quality: (3)
- Product fails
- Product doesn’t perform as promised
- product is delivered late
Poor quality means :
Loss of customer loyalty, damaged business reputation, competitors take advantage, financial costs
Quality Control:
The process of inspecting products to ensure that they meet the required quality standards. This is usually done before entering production, during and after the process. It is done usually by checking every product, or every 50th for example.
How is quality control achieved ?
Sampling and checking via inspection.
Problems with quality inspection :
Costly, often at the end of the production process so too late.
Quality assurance :
The process that ensures production quality meets the requirements of customers. It is where detailed systems are in place at every stage of production.
Total quality management
A management style committed to a focus on continuous improvement of the products/services with the involvement of the entire workforce. It is ensured by workers not inspectors.
Quality circles -
Group of employees who meet regularly to identify problems and recommending adjustments to the working process.
Zero defects -
The aim is to produce goods and services with no faults or problems
What is kaizen?
This means continuous improvement. It encourages employees to engage fully with finding ways to improve quality processes
4 types of production
Job
Batch
Flow
Cell
Job production
One off small number of items produced, normally made to meet customers specifications, often undertaken by small, specialised businesses, high quality.
Batch production
Producing a set number of identical items, it often offers customer standard products with some options. It is more efficient than job production which keeps costs down
Flow production
Products move continuously through a production process, when one task is finished the next must start immediately. It is associated with making high volumes of the same product.
Cell production
This means setting up a small production line or group working process so that items can be produced quite flexibly
What does productivity measure
The relationship between inputs into the production process and the resultant output.
Productivity =
Output ➗ input (per time period)
Factors influencing productivity
Level of investment in equipment, the ability level of those at work, improved employee motivation
Unit costs =
Total production costs ➗ total output (units)
Economies of scale is
Where unit costs fall as output rises
Labour intensive
Production relies on using labour resources, labour costs form a high percentage of total costs
Capital intensive
Production relies on using capital resources, machinery costs form a high percentage of total costs
