Production management Flashcards
What is the purpose of the production function?
They use the input resources bought by the purchasing function yo transform these resources into goods/services based on the needs/wants of the market.
List the factors of production.
- Land / raw materials (all materials used)
- Capital (includes all capital)
- Entrepreneurship (opportunities identified to combine the resources_
- Labour (human capital)
What are the long term decisions/tasks that the production management is in charge of?
- Choosing the factory premises.
- Factory layout
- Deciding on a production system.
- The selection and design of a product (product specification)
- Obtaining the required equipment.
What are the medium term decisions/tasks that the production management is in charge of?
- Determining the production budget.
- Determining the production quantities.
- Materials management (stock control).
- Safety measures.
- Maintenance.
What are the short term decisions/tasks that the production management is in charge of?
- The work plan
- The implementation of quality control.
Give detail on the long term task/decision 1. Choosing the factory premises
Various location elements must be considered:
- availibility of services, transport and labour & skills.
- proximity to the resource vs the market
- integration with business “partners”
- special grants
- site costs
- regional regulations
Give detail on the long term task/decision 2. Factory layout
Criteria for a factory layout are:
coordination (easy flow input -> output)
flexibility (can it be easily changed?)
distance (how far do labour and resources have to travel? longer distance= higher costs)
handling (kept to a minimum to reduce damage)
best use of space (e.g stacking clothes)
visibility (clearly visible to avoid injuries/accidents)
safety (all risks must be considered ti ensure all employees are safe)
limit discomfort (avoidance of poor lighting, excessive heat/noise/smells).
Give detail on the long term task/decision 3. Deciding on a production system
There are 4 production systems:
MASS PRODUCTION
When standardised products are produced in large quantities. (e.g. t-shirts)
BATCH PRODUCTION
Large quantities of similar products are made in batches - is a combo of mass production and jobbing. (e.g ‘Friends’ merch @ PnP clothing)
JOBBING PRODUCTION
Individualised products (e.g. wedding dress)
COMBINATION PRODUCTION
A combo of all of previous 3. (e.g. Crocs - mass produced but also customisable etc etc)
Give detail on the long term task/decision 4. The selection and design of the product (design specification)
Important in order to ensure that:
- Suppliers know what type and quality material are required.
- Easier to manage the control of delivery.
- Employees know expectations when producing.
- Less wastage, better productivity and more profits.
- Customer knows what quality can be expected.
Give detail on the long term task/decision 5. Obtaining the required equipment.
Decisions on which machines to buy depend on:
- production systems and rate of production
- price
- availability (e.g. Germany & Japan good machine suppliers)
- machine lifespan
- resale value (deprecating value?)
- training on machine
Give detail on the medium term task/decision 1. Determining the production budget
To be considered:
- Costs of buildings
- Cost of factory layout
- Cost of raw materials
- Wages of workers / employees
Give detail on the medium term task/decision 2. Determining the production quantities
Determined by:
- Capital investment needed for equipment (especially in mass production)
- Level of standardisation (e.g. mass production of t-shirts)
- Nature of the product (e.g a wedding dress vs a mickey mouse crop top)
What does ‘standardised’ mean in the context of production management?
Consistency in quality.
Give detail on the medium term task/decision 3. Materials management (stock control)
- Ensures right stock available at right time/place/quantity
- Production manager has to monitor supply chain
- Determines stock levels; min stock levels before new order is placed and ensuring that the max levels are not exceeded.
- Stock control systems (EPOSSE and JIT)
What does ‘EPOSSE’ stand for
Electronic point of sale scanning equipment
What does ‘JIT’ stand for
Just In Time (a method to ensure correct stock levels)
Give detail on the medium term task/decision 4. Safety measures
Ensures employee safety by:
- Skills training (safety officer employees)
- Employee orientation (fire drills)
- Audit and investigation techniques
Give detail on the medium term task/decision 5. Maintenance
Benefits of maintenance are:
- improved safety
- increased lifespan of equipment
- reliability of production
- lower operation costs
What are the three types of maintenance?
Corrective, preventative and conditional.
Match the following description to an appropriate business term:
‘Opportunities identified using these factors of production in order to make a profit.’
Entrepreneurship
Match the following description to an appropriate business term:
‘Tasks of the production function include: Input, _______, output and acceptance.
Transformation
Match the following description to an appropriate business term:
‘Standardised products are produced in large quantity.’
Mass production
Match the following description to an appropriate business term:
‘Manufacturing muffins would use _____ production.’
Batch
Match the following description to an appropriate business term:
‘Building a house is an example of ______ production.’
Jobbing
Match the following description to an appropriate business term:
‘Machines designed and built according to specific business requirements.’
Specialised
Match the following description to an appropriate business term:
‘An Act that regulates safety measures in the work place.’
OHSA - occupational health & safety act
Match the following description to an appropriate business term:
‘______ purpose machines are used in mass production.’
Single
Match the following description to an appropriate business term:
‘_____ purpose machines are used with jobbing.’
Multi
Match the following description to an appropriate business term:
‘Remedial or _____ machine maintenance.’
Corrective
