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Buisness > 2.4- resource management > Flashcards

2.4- resource management Flashcards

1
Q

Name the 4 methods of production

A
  • job production
  • batch production
  • flow production
  • cell production
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2
Q

What is job production

A

making one-off items to suit customers individual requirements

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3
Q

What is batch production

A

makes group of products to 1 specification at a time , allowing some variation in products, yet some specialisation

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4
Q

What is flow production

A

continuous production of a single standardised product

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5
Q

What is cell production

A

involves organising workers into small groups/ cells that can produce range of different products more quickly then job production

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6
Q

Name 2 benefits of job production

A
  • charge higher price -> products made to exact needs

- work is more interesting for staff

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7
Q

Name 2 drawbacks of job production

A
  • cost per unit- very high due to high skill & low levels of production
  • finding staff with enough skill is hard, pay will be high
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8
Q

Name 2 benefits of batch production

A
  • allows variation in product made

- faster then job production as making a batch speeds up production

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9
Q

Name 2 drawbacks of batch production

A
  • more costly to set up then job production due to machinery

- cost per unit will be higher then flow as machinery will need to be adjusted

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10
Q

Name 2 benefits of flow production

A
  • unit labour costs are extremely low

- huge volumes allow huge demand in mass markets to be met

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11
Q

Name 2 drawbacks of flow production

A
  • high initial costs of installing machinery

- products need to be identical

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12
Q

Name 2 benefits of cell production

A
  • group working allows ideas to be shared for improvements

- can adjust products to suit customers needs

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13
Q

Name 2 drawbacks of cell production

A
  • costs still high as heavily relies on people

- production volume wont be as high as flow production

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14
Q

What is productivity

A

measure of efficiency of the production process. output per worker per time period

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15
Q

Give the equation for productivity

A

total output / number of workers

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16
Q

Name the3 key factors influencing productivity

A
  • quality and age of machinery
  • skills and experience of workers
  • level of employee motivation
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17
Q

How are productivity and competitiveness linked

A
  • higher levels of productivity -> lower unit costs -> sell at lower price -> more competitive
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18
Q

What is efficiency

A

measures how resources generate output without wastage

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19
Q

How does quality and age of machinery effect productivity and efficiency

A
  • new machinery works faster -> breaks down less

fewer breakdowns -> fewer faults -> newer machinery produces with more accuracy

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20
Q

How do skills and experience of workers effect productivity and efficiency

A

high skilled staff -> produce quicker -> more experience -> complete tasks quicker

skilled staff make fewer mistakes, experienced staff can spot problems -> product made quicker

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21
Q

How can level of employee motivation effect productivity and efficiency

A

motivated staff -> more focused -> work quicker

more motivated -> more pride in work -> less errors

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22
Q

What is labour intensive production

A

production process relies heavily on human input with little use of automation

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23
Q

What is capital intensive production

A

uses high levels of automation, reducing role of humans, replacing them with machines

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24
Q

Name 2 key issues with labour intensive production

A
  • labour costs -> very high

- managing labour costs- critical, may force firm to move abroad

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25
Q

Name 2 key issues with capital intensive production

A
  • initial costs will be very high, with the need to invest specialist machinery
  • low running costs
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26
Q

What is capacity

A

maximum possible output of a business

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27
Q

What is capacity utilisation

A

the proportion of maximum capacity being used by the business

28
Q

What is the equation for capacity utilisation

A

current output / maximum possible output x100

29
Q

Name 3 things under-utilisation of capacity can cause

A
  • lead to fears of job security, demotivating
  • cause poor morale among managers
  • create poor reputation for the business
30
Q

Name 2 problems with over utilisation

A
  • firm may not be able to accept new orders, turning away new customers
  • little or no time to carry out maintenance on machines
31
Q

Name 2 ways of improving capacity utilisation

A
  • increase current output (through marketing)

- reduce maximum capacity (selling off assets or laying off staff)

32
Q

What is stock

A

materials, partially made products & finished goods owned by business that havent been sold

33
Q

What are buffer stocks used for

A

a minimum level of stock or raw materials used in production and finished goods at all times

34
Q

What are the reasons for keeping buffer stocks of raw materials

A
  • if deliveries are delayed, buffer stock allows production to continue
  • if a batch of supplies is faulty the buffer stock can be used to continue production
35
Q

Name 2 reasons for keeping buffer stock of finished goods

A
  • helps to ensure businesses can always supply customers

- allows firm to accept rush orders

36
Q

Name 5 problems associated with too much stock

A
  • opportunity cost: ties up capital and prevents money being spent in other ways
  • Cash flow problems: cash has been spent on the stock but the stock has not yet turned into cash
  • increased storage costs: takes up space
  • increased financing costs: if stock purchased with borrowing money, interest will need to be repaid
  • increased wastage: some stock may go off and wasted
37
Q

Name 3 problems associated with too little stock

A
  • lost customers : if supply doesn’t meet demand, customers will be lost
  • delays in production: if no materials standing then machinery cant run
  • Loss of reputation: if word gets around that business doesnt have enough stock then loss of customers
38
Q

What is just in time stock management

A

with no buffer stock, relies entirely on frequent small deliveries of materials from suppliers being delivered without delay and without any quality problems

39
Q

Name 2 key points about just-in-time stock management

A
  • suppliers must be willing to deliver frequently

- deliveries must be absolutely reliable

40
Q

Name 3 ways just-in-time stock management helps with waste minimisation

A
  • less stock held, less likely to be wasted
  • cash is not tied up in stock - wasting it
  • removing buffer stocks helps to highlight problems in production process
41
Q

What is lean production

A

range of Japanese techniques to eliminate waste from business processes

42
Q

Name 4 ways lean production improves how businesses are run

A
  • more input from staff
  • a focus on quality
  • fewer wasted resources
  • focus on reducing wasted time
43
Q

Name the 3 main methods of managing quality

A
  • quality control
  • quality assurance
  • total quality management
44
Q

What is quality control

A

involves checking output to find any faults in a production system

45
Q

What is quality assurance

A

focuses on producing methods of preventing quality problems arising

-checklists or procedures that are part of company policy

46
Q

What is total quality management

A

members of staff having the mindset of getting things right the first time

47
Q

Name 2 positives of total quality management

A
  • should become deeply rooted into company culture

- once all staff think about quality it should show through design and manufacture

48
Q

Name 2 negatives of total quality management

A
  • staff sceptical of management initiatives

- to get TQM into business may be expensive, requires training

49
Q

Name 2 positives of quality control

A
  • can guarantee no defective item leaves factory

- requires little staff training

50
Q

Name 2 negatives of quality control

A
  • leaving quality for the inspectors to sort out may mean poor quality is built into product
  • QC cannot be trusted if based on sampling
51
Q

Name 2 positives of quality assurance

A
  • makes sure quality is tested at every stage

- some customers like the reassurance of keeping records

52
Q

Name 2 negatives of quality assurance

A
  • does not promise a high quality product

- may encourage complacency, suggests quality is sorted

53
Q

What are quality circles

A

a group of staff who meet regularly to find quality improvements

54
Q

Name 4 things quality management leads to?

A
  • allows a premium price to be charged
  • helps gain distribution, retailers know they wont need to return
  • it creates brand loyalty and repeat purchases
  • can help build a brand reputation that spreads to other products
55
Q

What is continuous improvement (kaizen)

A
  • encourages staff to put forward stream of small ideas on how to do things better
  • small but frequent changes
  • help to improve productivity
56
Q

What is capital intensive production

A

uses high levels of automation- reducing role of humans

57
Q

What is the major negative implication of under-used capacity

A

fixed costs per unit will be higher

58
Q

Name the key features of the stock control diagrams

A
  • max stock level- affected by amount of space firm has avaliable
  • minimum stock level- amount of stock firm aims to always have
  • re-order level- when new order for stock is triggered
  • reorder quantity- jump vertically upwards- ^ stock level at start of months 4 & 7
  • lead time- gap between order placed & stock arrival time
59
Q

What are the importances of quality when selling products

A
  • legal & ethical consequences- ensures business meets consumer legislation acts
  • costs/ efficiency- when defects produced- wastes resources: time of employees (salary), materials
  • price- mistakes -> resources wasted -> ^in price charged -> damages competitiveness
  • competitiveness -> good quality enables firm to price competitively
  • good quality -> staisfied customers -> pick u over subsitutes -> ^ sales vol -> ^ market share
  • branding & word of mouth -> satisfied customers -> recommend products
  • bad quality -> affect reputation
60
Q

Definition of quality

A

product/ service is of good quality if it meets the needs & expectations of the customer

61
Q

Discuss 5 benefits of greater quality for a business

A

-customer satisfaction

-higher customer loyalty

-lower marketing costs

-customer recommendations

-repeat purchase

62
Q

How can good quality products lead to a competitive advantage

A

-> enables a business to differentiate its products from competition

63
Q

How can good quality products lead to a competitive advantage

A

-> differentiation

-> develop a reputation

64
Q

Porivde examples of poor quality

A

-product doesn’t perform right

-products delivered late

-poor customer service

-product fails

65
Q

Disadvantages of poor quality

A

-lost customers

-competitive disadvantage

-costs of remaking product

-costs of replacemet/ refunds

-wasted materials

Buisness (22 decks)

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