resource management Flashcards
what are the names of the four methods of production
study tip: Likely to come up in exam
job
batch
flow
cell
job production and example
produce one off items produced by skilled workers
e.g. wedding cakes
adv of job production
people more likely to spend highly price for unique handmade product
dis of job production
each product takes long time to make, fewer products made in given time period
(productivity is lower and slower)
skilled workers need to be paid high wages
therefore, increased costs
cant reach economies of scale
products re unique so cant buy in bulk
unit costs are higher
therefore, need to charge higher prices
flow production definition and example
uses assembly line to produce lots of identical products
e.g chocolate bars
each worker completes task then given to other worker to complete next task
works in a flow
adv of flow production
most efficient
can be continuous with no stoppages
many operate 24 hours a day using machines and human workforce
allows business to reach economies of scale as all products identical. therefore, can buy in bulk
reduced unit costs so can charge prices lower to customers
productivity is quicker and more efficient
dis of flow production
if machinery breaks down then stops whole process
delays production
boring for workers as having to make same identical products all day long
batch production definition and example
when same equipment is used to make small batches of different products
products made in each batch are identical
one batch is made then production stopped, equipment altered and cleaned, then next batch is made
e.g t shirts
adv of batch production
productivity of business using batch production is higher then job but lower then flow as each batch needs to be stopped each time
can benefit from economies of scale as can buy raw materials in large quantities
dis of batch production
having to alter the equipment each time can be time consuming as delays productivity
cost and inconvenience of storing raw materials
cell production definition and example
when flow is divided into sets of tasks
each task completed by work group
e.g car assembling, each group assembling different part of car
adv of cell production
workers get to work with others, may make them feel happier
therefore, increasing productivity
as workers responsible for large chunk of work, may feel more pride in their work, results in higher quality products
dis of cell production
as product is removed from flow at each cell, producivity may be lower
productivity definition
rate of production from each unit (human worker or machines)
dis of machinery
initial costs are high
if it dies, then all production is slowed down
humans may rely on it too much and become demotivated #if machinery gets old, level of maintenance required to keep it running can increase
production stoppages
if business alters its production, then have to reprogramme or have new software installed, humans can easily change what they are doing
adv of machinery
can work 24/7
have no feelings so easier to work with then humans
can work for more hours day/ do not need to stop
ways to increase human workforce productivity
training staff so know best and quickest methods to make product
training can also motivate staff ti work harder as feel more valued
CP- initial drop in productivity when staff go and do the training
piecework-workers are paid only for units they produce so motivated to work faster
CP-reduction in product quality
hiring key worker to monitor workforce and motivate them
CP-additional cost of extra employment
efficiency definition
where production happens at an overall minimum average cost
labour intensive firms
uses more workers, less machinery
