Resource Management

Question 1

Financial Resources

Answer 1

• cars are expensive products with costly components
• built/maintained by skilled employees with high salaries
• need of capital expenditure to start a business
• many are LTD or PLC as can generate the capital needed via the sale of shares

Question 2

Physical Resources

Answer 2

• cars are large commodities - need suitably sized premises to operate
• traditional car retailers need extensive areas to display stock + allow for test drive
• secure location to prevent theft of stock
• cost of land to build factories - acts as a barrier for new entrants to industry

Question 3

Technological Resources

Answer 3

• very expense and require regular maintenance and updating - can become obsolete
• manufacturing is capital intensive and relies upon use of robots, machinery and technology
• Modern cars contain many microchips - programmed using sophisticated software applications

Question 4

Resource Management (case study)

Answer 4

• Toyota - Lean production
• based on reducing waste and pursuit of efficiency
• 2 concepts - JIT + Jidoka - problem occurs, production stops - to find issue + avoid defective products

Question 5

Production Planning

Answer 5

• most car producers use cell production - each model of car is generally offered in a range of different models with different features to suit customer needs and budgets.
• Range Rover - evoque or vogue or velar or autobiography or sports
• some high end cars like Bentley or Rolls Royce use job production

Question 6

Supply Chains Management

Answer 6

• during covid - microchips meant lead time for new cars have been as much as 18 months compared to 2-3 months = lead to a purchase of used cars not new

Question 7

Inventory Management

Answer 7

• Car industry use JIT - stock is ordered to arrive at the exact moment - for a repair and/or the stage of production
  -reduce stock holdings and maximise efficient operations - part of lean productions
• warehouse staff are required to manage the stock, stock management IT systems are needed, stock to be insured and there is a risk of the stock becoming damaged or even stolen

Question 8

Nissan using Lean production

Answer 8

• NPW ( Nissan Production Way) - process of producing a vehicle
• Materials evaluated in terms of quality, cost and time
• Nissan uses lean production techniques to minimise non value adding activities and wastage
• specific training courses are offered to help staff at all levels to enhance their problem solving skills and generate/manage improvements