Higher Business Management Flashcards
STORAGE:
centralised + decentralised
CENTRALISED STORAGE:
all the stock is stored in one central area.
DECENTRALISED STORAGE:
all the stock is stored in different locations throughout the organisation depending on where the items are to be used.
STORAGE:
centralised + decentralised
Advantages + Disadvantages
CENTRALISED ADVANTAGES: - improved security - supervised by specialist staff - agreed procedures for issue/receipt -agreed procedures for ordering - bulk ordering/ storage may be cheaper - increased efficiency in distribution CENTRALISED DISADVANTAGES: -time wasting to go to and from stores -cost of specialist staff -cost of dedicated storage area
DECENTRALISED
ADVANTAGES:
- stock always ‘on hand’ when required
- orders of stock will reflect actual usage
- faster turnover of smaller amounts of stock reduces likelihood of deterioration/decay
DECENTRALISED
DISADVANTAGES:
- less rigid control - theft and loss more likely
- takes up space in production areas
METHODS OF PRODUCTION
JOB PRODUCTION:
here each ‘job’ is completed in its entirety before another job is completed. Thus, a single product is made at a time.
BATCH PRODUCTION:
all stages in the production process are completed at the same time. Products will have a marked degree of similarity, although different ingredients may be used for different products.
FLOW PROUDCTION:
this process uses the production line and the product passes through various stages along the line with component parts being added at each stage.
CAPITAL-INTENSIVE PRODUCTION
Capital-intensive production involves producing products that primarily use machinery and equipment to produce products.
Capital-intensive production can utilise either automation or mechanisation.
Automation: refers to production being fully automatic. This involves the use of computer aided manufacture to control fully automated assembly lines that use robotics.
Mechanisation: refers to labour and machines working together to produce products. A traditional example is a machinist operating a sewing machine in a textile factory.
LABOUR-INTENSIVE PRODUCTION
Labour-intensive production involves humans doing most of the work. This is most common in job production.
LABOUR-INTENSIVE PRODUCTION:
advantages + disadvantages
ADVANTAGES:
- labour is less expensive than capital intensive
- humans can use initiative and creativity, something that is often lacking in automated systems
-there’s a constant supply of labour, often skilled labour, available in areas of the country with manufacturing traditions.
-employees are motivated as they are not ‘giving up’ tasks to machines
DISADVANTAGES:
- the business is at high risk of human error, resulting in waste. faulty products and disgruntled customers
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