Resource management

Question 1

What is Job Production?

Answer 1

Job Production involves creating one unique item at a time, often tailored to customer specifications. It’s commonly used by sole traders and companies making bespoke or one-off products.

Question 2

List three advantages of Job Production.

Answer 2

1= High quality & detail
2= Motivated workes
3= Customisation & uniqueness

Question 3

One disadvantage of Job Production is high ______ costs, as skilled workers are needed for each product.

Answer 3

labour

Question 4

What type of business typically uses batch production?

Answer 4

Businesses like bakeries use batch production, where goods are made in batches, and the production line can switch between different products.

Question 5

List three advantages of batch production

Answer 5

1= Specialisation
2= Lower Unit Costs
3= Flexibility

Question 6

A disadvantage of Batch Production is that if batches are small, unit costs can still be ______. Workers are also ___ ___________

Answer 6

high
not motivated

Question 7

What is flow production?

Answer 7

Flow Production is a continuous production process where items move through a factory along a set production line, usually in large quantities. It’s used in industries like car manufacturing.

Question 8

List three advantages of Flow Production.

Answer 8

1= Low unit costs
2= Fast output
3= Worker efficiency

Question 9

List three disadvantages of Flow Production.

Answer 9

1= Standardisation
2= Low motivation
3= Huge set up costs

Question 10

What is cell production?

Answer 10

Cell Production involves organizing workers into small teams or cells. Each team is responsible for completing a product or part of a product, which promotes teamwork and efficiency. It’s often used in industries like drug manufacturing.

Question 11

List three advantages of Cell Production.

Answer 11

1= Flexibility
2= Reduced lead times
3= Teamwork (Mayo)

Question 12

What is Productivity and how is it measured?

Answer 12

Productivity refers to the amount of output a business can produce using a certain amount of resources. It can be measured through labour productivity (output per worker) or capital productivity (output per unit of machinery).

Question 13

List two factors that influence productivity.

Answer 13

1= Specialisation
2= Motivation

Question 14

Labour flexibility allows workers to perform different _____, enabling businesses to respond to changes in ______.

Answer 14

tasks
demand

Question 15

What is the connection between productivity and competitiveness?

Answer 15

Increased productivity leads to lower unit costs, allowing a business to reduce prices. This makes the business more competitive, potentially winning more customers and threatening competitors’ survival.

Question 16

What does efficiency mean for a business?

Answer 16

Efficiency means making the best use of resources (like labor and materials) to minimize waste and maximize output, reducing costs and improving profitability.

Question 17

List two factors that influence efficiency.

Answer 17

1= Standardisation
2= Outsourcing

Question 18

What is lean production?

Answer 18

Lean production aims to use fewer resources to achieve maximum efficiency and reduce waste.

Question 19

Labour-intensive production relies on _______, while capital-intensive production uses ___________.

Answer 19

humans
machinery

Question 20

List two advantages of using a capital-intensive strategy.

Answer 20

1= Precision & consistency
2= 24/7 operation

Question 21

List three disadvantages of capital-intensive production.

Answer 21

1= High set up costs
2= Long delays
3= Inflexibility

Question 22

List two advantages of labour-intensive production.

Answer 22

1= Flexbility
2= Cheaper for small-scale production

Question 23

What are the challenges of using labour-intensive production?

Answer 23

1= Unreliable workers
2= Need to be motivated

Question 24

What is capacity utilisation?

Answer 24

Capacity Utilisation is the use that a business makes with its resources. If a business is not able to increase output, then it is said to be at full capacity.

Question 25

What is the formula for capacity utilisation?

Answer 25

Capacity Utilisation = Current output / Maximum possible output X 100

Question 26

Give three advantages and three disadvantages of under utilisation.

Answer 26

1= Wasted resources 2= Higher unit costs 3= Workers feel insecure 4= Cope easier with demand 5= Advantage to rivals 6= Relaxed workers

Question 27

Give two advantages and four disadvantages of under utilisation.

Answer 27

1= Good staff motivation 2= Lower unit costs 3= Strain on resources 4= Inflexible to demand changes 5= No time for staff training 6= Stress and tiredness

Question 28

What are five ways to increase capacity utilisation?

Answer 28

1= Reduce capacity 2= Increase sales 3= Increase usage 4= Outsourcing 5= Redeployments

Question 29

How does outsourcing increase capacity utilisation?

Answer 29

It can be more efficient for a business to outsource work in areas of the business which have low utilisation rates. It can be a lot cheaper for the business as well as being able to make staff redundant to save money. Additionally, the external companies are specialists which means they often can be more efficient than your previous workers.

Question 30

Define stocks.

Answer 30

Raw materials, semi-finished goods and components are called stocks (also known as inventories).

Question 31

Define work-in-progress.

Answer 31

Work-in-progress is partly finished goods that are stocked, however some businesses hold finished goods to be able to cope with changes in demand.

Question 32

What are stockpile goods?

Answer 32

This is the process of building up stocks in the leadup to a period of high demand, for example, christmas.

Question 33

What is lead time?

Answer 33

Lead time is the amount of time it takes for a stock to be ordered, received, inspected and made ready for use.

Question 34

How do perishable goods affect stock?

Answer 34

Businesses can only hold a small amount of stock of perishable products, e.g. food. This is because they would go off.

Question 35

What are buffer stocks?

Answer 35

Buffer stocks are emergency stocks held in case of a stock shortage. If a business is not able to meet a surge in demand, it may miss out on sales opportunities.

Question 36

What are some implications of holding too little stock?

Answer 36

1= Cannot cope with changes 2= Delays halt production 3= Cant cope with shortages 4= Low stocks = more orders 5= Less benefit from economies of scale

Question 37

What are some implications of holding too much stock?

Answer 37

1= Storage cost 2= Opportunity cost of cash tied up 3= Quality may deteriorate 4= Admin costs 5= If demand falls, could go unsold 6= Theft from employees

Question 38

Just-in-time (JIT) management of stock is acquiring stock as and when it is ________. This meant that cash was not ____ __ in stock however meant that high levels of ________ ________ must be achieved. This was also known as the ________ approach.

Answer 38

needed tied up working capital kaizen

Question 39

Just-in-time stock management improves _______ ______, reduces ______, lowers ______, improves __________ of workers and gives more scope for ___________ within the factory's computer system.

Answer 39

cash flow waste costs motivation integration

Question 40

However, just-in-time production places alot of faith in the ___________ and ___________ of ___________. There are additional ordering and ___________ costs, and lose out on __________ of ______. Also, it is difficult for them to cope with sharp changes in ___________. There is a possible loss in ___________ if customers are let down by late deliveries.

Answer 40

reliability flexibility suppliers administration economies of scale demand reputation

Question 41

List some possible ways to reduce waste.

Answer 41

1= Refrigeration of perishable goods. 2= Demand forecasts are kept as accurate as possible 3= Stock rotation methods 4= Adjustable pricing methods 5= Use of IT systems 6= Charity / donations

Question 42

Define quality.

Answer 42

Quality is features of a product/service that allow it to satisfy a customer's wants.

Question 43

What is quality control?

Answer 43

Quality control is the process of finding poor quality products.

Question 44

What does quality control ensure that products are?

Answer 44

1= Satisfy customer needs 2= Are operated in the right way 3= Are produced cost-effectively 4= Are be repaired easily 5= Are conformed to safety standards

Question 45

What is quality assurance?

Answer 45

Quality Assurance is a commitment by a business to maintain good quality throughout the organisation, which aims to stop problems before they occur in the first place. It takes into account customers’ views when planning the production process.

Question 46

What is quality circles?

Answer 46

Quality circles are small groups of workers in the same area of production who meet regularly to study and solve production problems.

Question 47

What are some benefits of using quality circles?

Answer 47

1= Increased worker motivation: 2= Problem solving (Mayo) 3= Worker involvement 4= Encourages innovation 5= Stronger culture

Question 48

What are some drawbacks of using quality circles?

Answer 48

1= Time consuming 2= Needs management support 3= Needs skilled workers 4= Requires workers to care

Question 49

What are some benefits of using quality assurance?

Answer 49

1= Meets customer needs 2= Reduced costs 3= Enhanced efficiency 4= Consistency

Question 50

What are some drawbacks of using quality assurance?

Answer 50

1= Time consuming 2= Requires skilled workers 3= Overlooks minor issues 4= Resource intensive

Question 51

What is total quality management?

Answer 51

Total Quality Management (TQM) is a method designed to prevent errors. This is done by investigating the manufacturing process at each stage. Every department, activity and worker is organised to take into account quality at all times.

Question 52

What are some of the benefits of using TQM?

Answer 52

1= Focus on customer needs 2= Quality achieved in all areas 3= Reduced waste and inneficiencies 4= Improvements to develop performance 5= Allows for continuous improvement

Question 53

What are some of the drawbacks of using TQM?

Answer 53

1= Training & development costs 2= Commitment from entire business needed 3= Bureaucracy and documents 4= Hard for small businesses 5= Stress and focus

Question 54

What is Kaizen?

Answer 54

Kaizen is the umbrella concept of continuous improvement. A number of different production techniques and working practices must be used to achieve this, in order to result in ongoing improvements.