Theme 2 Resource Managment

Question 1

Job, batch, flow and cell production +-

Answer 1

Job- production of high quality,customised products to meet customers specific needs.(flower arrangements for a specific wedding)
+ higher quality products (sell for more)
+more motivated workers
-costs high per unit
- labour intensive
Batch- manufacturing a set quantity of identical products at the same time.(bread)
+ cost saving from buying in bulk
-high costs if errors
-have to hold a lot of stock
Flow- production of goods that flow through an assembly line of stages before being put out for delivery(cars)
+capital intensive (can work constantly to increase output and lower cost per unit)
-massed produced so less differentiation possible
Cell - workers organised into teams to be responsible for a specific part of production.
+increase motivation through team work
- takes money and time to get trained skill staff I’m their role

Question 2

What is meant by productivity

Answer 2

Measure of Effie Jen y of a person,machine, factory or system. Divide number of goods produced by number of hours worked.

Question 3

Two factors influencing productivity

Answer 3

Labour - skills, knowledge and training.
Capital- access to automated equipment.

Question 4

Link between productivity and competitiveness

Answer 4

More productive you are the lower the costs are, can be more competitive as you can now lower prices to make more profit to re invest to improve performance.

Question 5

Efficiency vs productivity

Answer 5

P- how much work you get done in a certain time.
E- how well you use your resources like time.

Question 6

Two factors influencing efficiency

Answer 6

Use of machinery
Ability of workforce

Question 7

Difference between labour and capital intensive production

Answer 7

Labour- staff and ppl to produce goods and services.
Capital- suing machinery to produce goods and service.

Question 8

What is capacity utililzTion

Answer 8

Def- manufacturing or production capabilities a business can do at a given time with right amount of resources.

Question 9

Three implications of under-utilisation of capacity

Answer 9

Higher unit costs
Lower morale as staff underused
Less competitive

Question 10

Three implications of over utilisation

Answer 10

Increased likelihood of machines breaking down
Less able to respond to changes in demand (new orders)
Impact on customer service as work may be delayed or misses deadline

Question 11

2 ways if improving capacity utilisation

Answer 11

Improved marketing(to increase demand)
Reduce total capacity

Question 12

Buffer stock definition and +-

Answer 12

Stock held in case of unexpected orders so they can be met in case of delay s from suppliers.
+ improved customer service
+ lower unit costs from buying in bulk
-added cost of holding stock (warehouse rent)
-require constant monitoring so don’t overstock

Question 13

Def of just in time +-

Answer 13

Where inputs in the production process arrive only when they are needed.
+lower stock holding costs.
-may be delays, customer service
-no spare finished products to meet unexpected orders.

Question 14

Two problems of poor stock control

Answer 14

• excess stock paying to store of remove due to expiration.
  -unable to meet demand (loss of customers)

Question 15

Two benefits of waste minimisation

Answer 15

+lower costs
+improved efficiency

Question 16

What’s lean production

Answer 16

Focuses on cutting out waste whilst ensuring quality, aims to cut costs and make business efficient maybe through Just In Time.

Question 17

Two ways lean production may lead to a competitive advantage

Answer 17

1. By reducing waste this cuts costs so can be more competitive with pricing.
2. Reducing waste mean time can be saved and focused more on customer requirements leading to faster delivery.

Question 18

Two ways quality management can give a business a competitive advantage.

Answer 18

. Strong brand reputation as delivering quality products.
Differentiate by improved customer satisfaction and brand loyalty.

Question 19

What’s the difference between quality control and assurance +-

Answer 19

Control is the process of checking work usually at the end of production through inspection,testing and sampling, may have to do product recall if already sent out to customers.
+quicker
-more waste
assurance, plans how business can limit any issues before products are made , quality built into production
+less quality control needed
+reliable products
-takes longer

Question 20

Def of quality circles, total quality management and Kaizen

Answer 20

QC- a group of employees who come together to discuss improvements or success.
TQM- attitude to quality that aims for zero defects and total customer satisfaction.
K- continuous improvement through introducing small changes into a business to improve quality and efficiency.