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Business > Section 10 - Organisational Structure > Flashcards

Section 10 - Organisational Structure Flashcards

1
Q

What is job production?

A

Making a one off unique product, single + customised, tailor made, meet needs of consumer

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2
Q

What are the advantages of job production?

A
  • Unique
  • Higher quality
  • Can charge high prices
  • High profit margin
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3
Q

What are the disadvantages of job production?

A
  • High costs - materials
  • Need skilled workers as labour intensive
  • Slower
  • Machinery often idle
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4
Q

What is batch production?

A

Making a group of similar products at once

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5
Q

What are the advantages of batch production?

A
  • Lower unit cost
  • Wide product range
  • Flexibility
  • Less idle machinery
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6
Q

What are the disadvantages of batch production?

A
  • Lots of waste if one batch goes wrong
  • Varying quality in batches
  • Reliant on one machine
  • Costly storage needed
  • Lower quality products
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7
Q

What is mass/flow production?

A
  • Making lots of the same product continuously
  • Identical
  • Made in large quantities
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8
Q

What are the advantages of mass/flow production?

A
  • Quicker
  • Cheaper as lower unit costs
  • Same quality across all products
  • Large outputs
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9
Q

What are the disadvantages of mass/flow production?

A
  • Not unique
  • Mistakes result in a lot of wasyte
  • Lower quality
  • Inflexible
  • Repetitive work
  • Lower profit margins
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10
Q

In terms of production, how might a business change as it expands?

A
  • Moves from job/batch to mass/flow

- Labour intensive to capital intensive

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11
Q

What are the advantages of moving from batch or job production to mass/flow production (labour to capital intensive) as a business grows?

A
  • Reduced costs for staff as less skilled
  • Lower unit costs
  • Target larger orders, increase capacity
  • Increase efficiency
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12
Q

What are the disadvantages of moving from batch or job production to mass/flow production (labour to capital intensive) as a business grows?

A
  • Initial high costs (machinery)
  • Nothing unique, no USP?
  • Quality could suffer
  • Redundancies
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13
Q

What are the different methods of lean production?

A
  • Kaizen
  • JIT (just in time)
  • Cell production
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14
Q

What is lean production?

A
  • Cutting away anything that is not necessary for production so no wastage
  • Carry no excess at all
  • Efficient
  • Maximum productivity
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15
Q

What is Kaizen?

A

Making a product, see how it can be improved, make again, see how can be improved again

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16
Q

What is JIT?

A
  • Just in time
  • Where inputs into the production process arrive only when they are needed
  • Less storage
  • Order when you need it
  • Dependence on suppliers (can affect whether you can supply customers
  • No economies of scale
17
Q

What is cell production?

A
  • Where workers organised into multi-skilled teams w/ each team responsible for a particular part of production process
  • Teams
  • Different skills/ideas
18
Q

What are the advantages of JIT?

A
  • Saves money on storage
  • Less likelihood of wasted stock (e.g. out of date)
  • Less build up of unsold product
19
Q

What are the disadvantages if JIT?

A
  • No room for mistakes as could be costly

- Reliant on suppliers

20
Q

What are the advantages if cell production?

A
  • More motivation from more variety of work
  • Higher quality as each cell has ownership for quality on area
  • Members within cell are close so better communication
  • Become multi-skilled + more adaptable
  • Can cover if one sick
21
Q

What are the disadvantages of cell production?

A
  • Staff need to be trained
  • Have to assign staff enough so they can work efficiently but not overdone
  • Can not use machinery as much
22
Q

What are the advantages of kaizen?

A
  • Constantly making product better
  • Adaptable to customer requirements
  • Less need for inspection as improved always
  • Better teamwork
23
Q

What are the disadvantages of kaizen?

A
  • Time consuming
  • Can be demotivating, accepting failures
  • Varying quality
24
Q

How can a business measure productivity?

A
  • Output per worker, as high as possible

- Labour turnover, low = managing to retain staff, high = might be indicative of problem

25
Q

How do you work out output per worker?

A

Total output / number of staff

26
Q

How do you work out labour turnover?

A

Number of staff leaving / average staff x 100 [%]

27
Q

What is quality?

A

Achieving a standard for a particular product or service which meets customer needs

28
Q

Why is quality important (especially compared to in the past)?

A
  • More competition, need to be cheaper
  • Lots of people want better quality
  • Brand image/reputation; customer expectations higher as review negatively otherwise
  • Expect life cycle
  • Constantly evolving in what expecting as customer
  • Government legislation
29
Q

What makes a product sub standard?

A
  • Not fit for purpose
  • Not durable, breaks
  • Poor customer service
  • Poor instructions
  • Delivered late
30
Q

What methods are there to ensure quality standards?

A
  • Quality control
  • Quality assurance
  • TQM, total quality management
31
Q

What is quality assurance?

A

Checking the quality of the product as you go

32
Q

What is quality control?

A

Checking the quality of the product at the end

33
Q

What is TQM (total quality management)?

A

Everyone responsible for managing quality

34
Q

What is specialisation/division of labour?

A

Work in specific area where skill set

Business (13 decks)

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