Orange Booklet Flashcards
What is a trade union?
An association of workers in a trade or a precession, formed to defend and advance their rights and interest, e.g. negotiating pay
What is collective bargaining?
Where a business negotiated with representatives of employees, such as trade unions, regarding the terms and conditions of employment
What is industrial action?
Where employees, usually in the form of a trade union, protest over some element of working conditions
Give 3 forms of industrial action:
- Overtime ban (refuse to work any extra hours)
- Work-to-rule (stick very closely to rules in workplace)
- Strikes (withdrawal from labour) e.g miners strike 1984
How can the employee and employee attempt to dispute resolution? (3)
- Negotiation
- Consultation
- ACAS
What does ACAS stand for?
Advisory
Conciliation - discuss dispute
Arbitration - use impartial adviser to settle dispute
Service
What is meant by operations management? Give an example
The methods used by a business to create products and services that are efficiently delivered to the customer to maximise profits and reduce costs
E.g. Tesla = in process of making worlds largest battery production facility for its electrical cars
What is added value? With calculation
Enhancing the gap between the production cost and selling price
Added value = selling price of product - cost of production
What is the definition of production?
The total amount of output produced in a specific time period,
More produced in a specific time period the more efficient the business
Give 3 methods of production:
- Job production
- Batch production
- Flow production
What is job production? Give an example
A method of production in which a business concentrated in producing a single unit at a time, usually for a unique product.
E.g. wedding dresses
What is batch production?
Manufacturing a number of goods at the same time, usually identical products
What is flow production?
A method of production in which units move directly from one operation to the next in a conitinous sequence
What is productivity?
A measurement of the efficiency with which a business turns inputs into outputs.
The more productive a business is the better it can compete = competitive advantage and increased market share
What is the calculation for labour productivity?
Output per period / no. of employees per period
What is the calculation for capital utilisation?
( Actual output / max. possible output ) x 100
What is capacity utilisation?
Measure the proportion of current output compared with the maximum possible output in a given period
What does capacity utilisation tell us? If it’s high
High = lower unit costs, using assets effectively, making the business more competitive should mean higher profits
Give 3 ways of increasing capacity utilisation:
- Increasing workforce’s hours (extra shifts or temp. staff)
- Improve marketing = increase demand for products
- Cutting capacity of factories (buy smaller premises)
What is spare capacity?
When a business is working at less than 100% capacity
Give 4 problems with spare capacity:
- Demotivation of staff
- Increase costs to business e.g redundancy payments
- Reduced profits
- Lack of return on capital investment
How to resolve space capacity: (3)
- Getting someone else to produce goods for you
- Concentrating on core products
- Increasing use of assets (e.g. sublet some of ship floor)
Give 4 advantages of technology:
- Improved quality
- Faster innovation
- More effective marketing sales
- Less dependency on labour
What is lean production?
Philosophy which aims to minimise costs and enhance quality by using a tango of waste-saving measures
Give 4 methods used to reduce waste and improve productivity:
- Kaizen
- Just-in-Time
- Cell production
- Time-based management
What is Kaizen?
Practices to promote continuous improvement such as asking groups of workers to share ideas about not efficiency
What is Just-in-Time?
A stock management strategy which aims to increase efficiency by receiving raw materials only when that are needed in the production process
What is Cell production?
A system in which the production line consists of small teams (cells), with each cell responsible for a significant part of the end product
What is Time-Based management?
Focus on speed of development, response and delivery are becoming increasingly important. Time regarded as key resource to business
What is Quality?
Feature of product or service that allows it to satisfy customer needs
Why is quality important?
Factor in gaining competitive advantage.
If customer is consistently satisfied, it will increase their loyalty of the brand, which results in increased sales, market share and profits
Give 4 ways in which quality can be controlled:
- Quality control
- Quality assurance
- Total quality management
- Benchmarking
What is quality control?
Process of inspecting products to ensure that they meet the required quality standards
