Theme 2 Section 9 Resource Management Flashcards
Job Production
Unique products, wedding dress, high prices
Flow Production
Assembly line (identical products) chocolate bars, continuous.
Batch Production
Small batches different products, t-shirts then dresses.
Cell Production
Divided into tasks, each group responsible for a part of each car, increases productivity.
Productivity
Rate of production from each input (human worker) or machine.
Machines Increasing Productivity
Completes tasks faster, more hours each day
Machine Drawbacks Productivity
Old/maintenance, production stoppages, reduces productivity.
Human Workforce Increasing Productivity
Best/quickest methods, improve productivity, motivates staff, feel more valued.
Piecework
Increases productivity, paid only for units produced, work faster.
Reduction in product quality.
Efficiency
Production at an overall minimum average costs.
Labour-Intensive Firm
More workers tan machinery, NHS need skilled workers to solve problems to patients.
Labour-Intensive Firm Advantages
Retrained, carry out new tasks.
Solve problems, suggest how to improve quality.
Labour-Intensive Firm Disadvantages
Hard to manage people, unreliable need breaks/holidays.
Wages increase, cost of production increases.
Capital-Intensive
Larger firms use more machinery than workers.
Capital-Intensive Advantages
High Initial Investment, long term cheaper.
More precise, consistent quality.
24/7 easier to manage.
Capital-Intensive Disadvantages
Expensive to buy/maintain, difficult for small firms.
Suited to one task, inflexible.
Workers demotivated, fear of replaced by machinery.
Capacity and Formula
Maximum output produced in given period without buying fixed assets, machinery.
Current Output/Maximum possible Output x 100
Over-utilisation (100% Utilisation)
No downtime, machines on all the time, breakdown delays productivity.
No margin error, has to be perfect, stress on managers leads to mistakes.
Over-utilisation can Increase Capacity
Working 2-3 shifts a day, weekends, bank holiday.
Buy more machines, affordable, if staff can operate them.
Under-utilisation
Inefficient, business not getting good use out of machines and facilities.
Reduce motivation, not enough work.
Fix Under-utilisation
Changing Marketing Mix, promotion, price, distribution.
Takes customers from competitors, exit market, demand increases.
Short-Term changes in Capacity Utilisation
Flexibility, seasonal goods towards decline and special orders.
Long-Term Capacity
Market Research, predict future demand, not 100% certain.
Lower Unit Costs, if predictions true.
Stock (Inventory)
Minimise stock, costs. Depends on size of stockrooms
Buffer Stocker (minimum stock level)
Minimum level of stock, raw materials/goods don’t run out.
Lead Time
Time it takes for goods to arrive after ordering from supplier.
Longer lead time, more buffer stocks held.
Re-Order Quantity
Amount business orders from supplier.
Stock level at which is re-ordered is re-order level.
Stock Control Diagram
Managers to analyse and control over period of time.
Buffer Stock Benefits
Avoid running out of stock, high demand products.
Buffer Stock Drawbacks
Storage Cost, rent, bills.
Poor Stock Control
High stock-out Costs, manufacturing firm, running out of raw materials, production stopping, workers, expenses still paid, demotivating staff.
Lean Production
Minimise waste whilst improving rate of output and quality of products but holds little stock
Just-In-Time
Reduces waste, little stock as possible.
Stage Costs Reduced.
Frequent deliveries.
Quality
Meeting or exceeding consumer expectations of a product.
Quality Control
(Quality Inspector) Checking goods after made or from supplier, anythings wrong.
Quality Assurance
Introducing production measures in production process, prevent errors before goods made.
Total Quality Management
Every employee in every department focus on quality to improve overall quality of products.
Total Quality Management Advantages
Every employee improving quality, bond as a team.
Boost reputation, good quality.
Fewer faulty products, less waste.
Total Quality Management Disadvantages
Not see immediate improvement.
Demotivate Staff, lots of effort.
Expensive, training employees.
Quality Circles
Meet to solve quality problems, increase productivity, motivation.
Kaizen (continuous improvement)
Lean production Improving work overtime, reduce waste as constantly evaluating.
