2.4 Resources Management Flashcards
Why is it important for lower cost per unit at the production to take place
A more efficient business will produce lower cost goods than competitors
It may generate more profits at lower prices
When investing in production assets is expensive therefore have to maximise the use of the machine
What ways can you improve productivity
Training Improved motivation More capital equipment Better quality raw materials Improved organisation of production in order to avoid waste
What is buffer stock ?
When you have left over stock but if it’s carried on onto the following year it becomes closing stock
What are the different production methods
Mass production Batch production Job production Flow production Process production
What is job production
It’s when you do a one off or a very small amount of items which you produce
It is normal made for customers specifications
Often done by small businesses
E.g plumbers
What is batch production
Similar products are produced together
Each batch goes through one stage of production before moving to the next
This method aims to have good quality products
What is flow production ?
Products move continuously through the production stages
Once one task is done it immediately starts the next one
What is process production
Includes a series of processes which raw materials go through and then come together
End results is a large quantity of finished products
What is capacity
The maximum output that a business can produce in a given period with the available resources
What is capacity utilisation
The percentage of total capacity that is actually being achieved in a given period
What is capacity usually measured in
Production units
What are the three ways to measure productive efficiency
Productivity- measures the relationship between inputs into the production process and the results of the outputs
E.g output per worker or hour
Output per day
Output per machine
Unit costs- divide total costs buy the number produced
Non productive “idle” products
E.g employees , machines
What is lean production
An approach to management that focuses on cutting out waste, whilst ensuring quality. This approach can be applied to all aspects of business from design to distribution
What is time based management
A general approach that recognises the importance of time and seeks to reduce the level of Wasted time in the production processes of a business
What is simultaneous engineering
An approach to project management that helps firms develop and launch new products more quickly. All parts of the project are planned together. Everything is considered simultaneously rather than separate
