Resource Management (2.4)

Question 1

What are the advantages of Job Production?

Answer 1

-Premium Price can be charged
-Easy to differentiate from competition

Question 1

What is Job Production?

Answer 1

-One-off bespoke Products
-High quality products made by experienced staff

Question 2

What are the disadvantages of Job Production?

Answer 2

-Staff require higher wages and process is slow
-Unit costs tend to be higher

Question 3

What is Batch Production?

Answer 3

-Batches of similar products
-More flexible production than flow

Question 4

What are the advantages of Batch Production?

Answer 4

-Standardized process make it cheaper than job
-Use of Technology make it cheaper than job

Question 5

What are the disadvantages of Batch Production?

Answer 5

-Batch less varied than job so staff morale may be lower
-Downtime between batches make it less efficient than flow

Question 6

What is Flow Production?

Answer 6

-Large-scale,24/7 production of standardized product
-Specialist machinery designed for production line

Question 7

What are the advantages of Flow Production?

Answer 7

-Lots of Technology/low staff leads to low Unit Cost
-Consistent, standard quality

Question 8

What are the disadvantages of Flow Production?

Answer 8

-Production Process inflexible to change
-Very high initial set-up cost

Question 9

What does Standardization mean?

Answer 9

The more standardized production is, the more you can bulk buy and you can cut costs

Question 10

What does Automation mean?

Answer 10

The amount of technology you use in your production process

Question 11

What does Downtime mean?

Answer 11

The amount of time workers or technology are NOT producing goods or services

Question 12

What are Economies of Scale?

Answer 12

The more you buy, the cheaper you get each unit so the lower your Unit Costs

Question 13

What is the equation for Labour Productivity?

Answer 13

Total Units of Output/ Number of Employees

Question 14

What is the equation for Capital Productivity?

Answer 14

Total Units of Output/ Number of Machines

Question 15

What are the ways in which you can improve productivity?

Answer 15

-Specialization and the Division of Labour
-Education and Training
-Motivation of Workers
-Working Practices
-Labour Flexibility
-Technology

Question 16

How can you improve efficiency?

Answer 16

-Lean Production (Trying to eliminate waste)
-Standardization
-Outsourcing/Offshoring
-Downsizing/Delayering
-Technology
-Just-In-Time Production

Question 17

What is Capacity Utilization?

Answer 17

A measure of how much capacity a business is using

Question 18

What’s the formula for Capacity Utalization?

Answer 18

(Current Output/Maximum Possible Output)x100

Question 19

What is a Bar Stock Graph? (Look up for Picture)

Answer 19

-Great Tool for Mapping out Stock Levels and never leaving yourself without products to sell
-No products will mean unhappy customers and bad reviews
-This will damage brand loyalty now as well as lowering future sales due to the bad word-of-mouth

Question 20

What is Just-In-Time?

Answer 20

-Materials delivered when they are needed and so they arrive just-in-time to go on the production line and products are sent straight out once they are made
-Good strategy when you have steady demand or when suppliers short lead-times are very reliable

Question 21

What is Quality Control?

Answer 21

-Quality checked at the end of the production so only when products finished#
-Time is saved in production process as only at end and so products go out quickly to customers

Question 22

What is Quality Assurance?

Answer 22

-Quality checked at each stage of production
-All staff responsible for quality
-More time consuming process but sets higher standard so less faulty goods are produced