2.9 Resource managment Flashcards
What is job production?
Making specialized goods as a one off and for a specific purpose.
What are advantages and disadvantages of job production?
Adv: Higher prices can be charged
Work is more interesting
Dis: Higher costs
Finding staff is tricky
What is batch production?
It is when goods are made in batches so not constant or a one off.
What are advantages and disadvantages of batch production?
Adv: It allows room for variation
Faster than job production
Dis: More costly than job production
High cost per unit
What is flow production?
When a good is being produced 24/7.
What are advantages and disadvantages of flow production?
Adv: Unit labour costs are extremely low.
Demand can easily be met
Dis: High initial costs for machinery.
Products need to be identical
What is cell production?
Lean production which means you minimise waste.
What are advantages and disadvantages of cell production?
Adv: It allows for ideas to be made within the employees.
Need a small group of high skilled workers
Dis: Production volumes will not be as high
Heavily reliant on labour.
What is productivity?
Productivity= Total output/ Number of workers
Factors influencing productivity?
Quality and age of machinery
Skills of employees
Level of motivation
What is efficiency?
It measures the extent to which the resources used in a process generate output without wastage.
What is capacity utilisation?
Capacity utilisation= Current output/ Maximum possible output x 100
What is stock?
Stock is the materials that have been put together to make a good which is being stored till it can be sold.
What is buffer stock?
This is any stock that makes it so that it cannot run out of stock.
What is JIT?
Just in time is when you get stock delivered just as you reach your buffer stock. This minimises waste.
