Resource Management Flashcards
What is job production and what does it involve?
Producing a one off item for a one off customer, it is very labour intensive and requires skilled workers
What is batch production and what does it involve?
Producing a set number of identical items, these batches can easily be switched to use the same production line for different batches
What is flow production and what does it involve?
A continuous production of identical items using an automated production line
What are the benefits of job production?
-High quality products
-Meeting customer needs and wants
-Highly motivated workers
What are the negatives of job production?
-High production costs
-Longer production time
-High labour costs
What are the benefits of batch production?
-Lower wages to pay workers
-Allows flexible production
-Employees specialise and become good at their jobs
What are the negatives of batch production?
-Expensive to make many small batches
-Lower motivated staff as work is repetitive
What are the benefits of flow production?
-Allows economies of scale = low unit costs
-Saves money with an automated production line
-Efficient way to produce
What are the negatives of flow production?
-High initial set up costs
-Repetitive and boring jobs for employees
What is cell production?
When the production of items is organised into groups and then teams are set at workstations to see a product through to completion
What are the benefits of cell production?
-Reduces waste by removing waste products
-Increased production
What are the negatives of cell production?
-High machinery costs
-Long set up due to training and getting machinery
What is production?
The action of making or manufacturing items from raw materials
What is lean production?
An approach to management that focuses on cutting out waste, whilst ensuring quality
What is the calculation for capital productivity?
Output / Number of machines x100
What is the calculation for labour productivity?
Output / Number of workers
What is productivity?
Measuring the efficiency of a person, machine or factory over a given time
What are the factors influencing production?
-Quality of inputs = faulty parts of an assembly line can stop it
-Labour shift = organisation of workers, you must have enough during peak times
-New technology = invest in new technology e.g robots can work 24/7
Why does productivity make businesses competitive?
Can charge more if they are producing economically efficient goods due to economies of scale
What are the benefits of efficient production?
-More products produced
-Competitive advantage + lower prices
-Make become market leader and have higher prices
What are the negatives of efficient production?
-Reduced quality because items are produced too fast
What is capacity utilisation?
The current output as a % of maximum output, it is what output is currently being used
What is under utilisation?
The current output is less than the maximum output
What is over utilisation?
The current output is more than maximum output
What is the calculation for capacity utilisation?
Actual output / Maximum possible output x100
Why is capacity utilisation used?
-Used as a measure of efficiency
-Average production costs fall as output rises so higher utilisation can reduce unit costs
What are the benefits of a business working at 100% capacity?
-Reduces average costs per unit which makes more profit
What are the negatives of a business working at 100% capacity?
-May not be able to meet all orders
-Overcrowded factory space
-May lead to machine breakdowns if checks are not being maintained
Why might a business need to work below 100% capacity?
-Lower demand
-Lower demand in the market
-Loss of market share
-Seasonality
How can a business improve capacity utilisation?
-Business could make staff redundant
-Sell assets
-Move to smaller premises
What happens if a business has under utilisation?
-Higher fixed costs per unit
-Unmotivated staff as they aren’t busy
-Impacts the brand image
What happens if a business has over utilisation?
-Staff may be too tired from overtime and cause accidents
-Mistakes may happen which affects quality
-No time to maintain machinery or train staff
What is stock control?
The control of the flow of stock in a business
What is involved in stock control?
-Raw materials = products needed to make the goods
-Work in progress = products being worked on in the factory
-Finished goods = products in the warehouse ready to sell to customers
Why do businesses keep stock?
-In case of an increase in demand
-In case suppliers are late
-So they never run out
What is buffer stock?
Stock held in case there is an unforeseen demand
What is led time?
The time it takes from ordering the product to delivery to customer
What are the consequences of poor stock control?
-Expensive to hold a lot of stock e.g storage area and staff to monitor the stock
-Leads to a poor cash flow as too much cash is tied up in stocks and there is no money to purchase raw materials
What is Just In Time? (JIT)
A system of delivering parts to the assembly line in a continuous flow when they are needed which helps negate issues involved in holding stock
What are the advantages of JIT?
-No wastage
-Saves costs as there is no storage room or staff to monitor needed
-Less cash tied up in stock
What are the disadvantages of JIT?
-No stock in case of emergencies
-Cannot benefit from economies of scale
-If stock deliveries are late it stops production
How does JIT impact suppliers?
-Must deliver more at once
-More specific
-Must be reliable and trustworthy
How does JIT impact employees?
-Stress/demotivated if stock is late
-Limits their workload
-May require training to use the system
What are the benefits of lean production?
Uses less time, labour, capital, raw materials and space within the factory
What did W. Edwards say?
‘Quality is defined by the customer’
which means customers may insist on certain specifications or demands
What are the benefits of good quality?
-Good reputation
-Reputable products
-Less returned products
What are the negatives of good quality?
-Costs more to produce
-The process of ensuring quality is expensive
What is quality control?
It is based on inspection and it involves an inspector checking that the output meets standard at the end of production
-May not check every product
What are the benefits of quality control?
-Guarantees that no defective item leaves the factory
-Requires little staff training so suits businesses with unskilled workers
What are the negatives of quality control?
-Cannot be 100% effective if not every product is tested
-Employees may make mistakes if they know it will be checked at the end anyways
What is quality assurance?
Inspecting quality while it is still being produced
What are the benefits of quality of assurance?
-Issues are found early which means products can be fixed rather than rejected
-The cause of the defects is the focus so it allows employees to learn what not to do
What are the negatives of quality assurance?
-Requires staff training and a skilled workforce which increases costs
-Lengthens the production process if items need to be reworked on
What are quality circles?
Where groups of workers meet regularly to solve quality problems in the production process
What are the benefits of quality circles?
-Workers may be motivated as they are involved in decision making
-Relevant and focuses on likely problems
What are the negatives of quality circles?
-Managers must trust employees views and solutions
-Meetings must be set up regularly
What is total quality management?
An organisation of a business with quality at its core and with every worker responsible for quality
What are the benefits of quality management?
-Improves efficiency as it looks at quality in all parts of the business
-There is a culture of constant improvement within the business
What are the negatives of quality management?
-All workers must be committed and receive continued training
-Careful monitoring and control is required
What are the benefits of buffer stock?
-Generates economies of scale
-Avoids running out of stock
What are the negatives of buffer stock?
-Costly to store
-Takes up room
What factors influence productivity?
-Work environment
-Employee attitude
What factors influence efficiency?
-Supplier quality
-Employee motivation
