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Business-T > 2.2 Managing Business Resources > Flashcards

2.2 Managing Business Resources Flashcards

1
Q

What is production

A

The action of manufacturing goods using raw materials

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2
Q

Job Production is

A

Making 1 unique product from start to finish

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3
Q

Factors of job production

A

-very labour intensive
-requires very skilled workers
-the items stay still and the worker works around it

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4
Q

Benefit of Job production

A

-specific to customer needs
-can set high prices
-high quality
-motivated workers

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5
Q

Drawbacks/limitations of job production

A

-expensive
-high wages
-don’t get paid till the end
-takes a long time
-large range of tools may be required

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6
Q

Batch production is

A

Making batches of similar products

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7
Q

Factors of batch production

A

-goods are made in batches
-batches can be switched to make something different one the same production line

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8
Q

Benefits of batch production

A

-can be changed to meet customer needs or fluctuations in demand
-less labour involved
-employees become specialised
-lower skilled workforce, lower payed wage

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9
Q

Drawbacks/limitations of batch production

A

-sum all batches carry higher average unit costs
-workers less motivated with repetition
-idle time between batches needs to be managed as this is wastage

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10
Q

Flow production

A

Continues production of identical items

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11
Q

Features of flow production

A

-large quantities are made
-semi skilled staff used to operate machinery

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12
Q

Benefit of flow production

A

-can work 24/7
-lower skilled workers, lower wages
-economies of scale (average cost is lower as higher volumes are made)

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13
Q

Drawbacks/limitations of flow production

A

-expensive automatons
-low motivation
-high labour turnover
-breakdowns and lost production can be costly as this is wastage

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14
Q

What is cell production

A

The production of items is organised into groups and then teams are set at workstations and see a product through to completion

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15
Q

Benefits of cell production

A

-employees are motivated
-staff become experts
-cost saving
-efficient (teamwork)
-good quality control

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16
Q

Drawbacks/limitations of cell production

A

-needs to be well organised
-needs lots of maintenance
-expensive to set up

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17
Q

What is capacity utilisation

A

is the percentage of maximum possible output that is currently being used.

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18
Q

Why is Capacity utilisation an important concept:

A

-often used as a measure of productive efficiency
-average production costs tend to fall as output rises- so higher utilisation can reduce costs, making a business more competitive

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19
Q

Positive of working at 100%

A

-more revenue
-lower unit costs

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20
Q

Negative of working at 100%

A

-demotivated staff
-can’t maintain machines, can’t clean so machine may break down more easily
-may be hard to meet new and unexpected orders so the business can’t grow unless expanding proaction scale
-staff may see pressure so mistakes and labour turnover
-if overcrowded then less efficient
-have to pay overtime

21
Q

How can a business operate above capacity

A

-overtime
-recruit more staff (temporary)
-add swing shift
-suspend maintenance check
-sib-contract same production activity

22
Q

What is lean production

A

An approach to management that focusses on cutting out waste, whilst ensuring quality

23
Q

What is productivity

A

Is the measure of the efficiency of a person, machine, factory or process of production

24
Q

Calculate capacity utilisation

A

Actual output / maximum possible output x 100

25
Q

Labour productivity calculation

A

Output (per time period) / Number of employees (per time period)

26
Q

Capital productivity calculation

A

Output / Capital employment x 100

27
Q

What is labour intensive productions

A

has a lot of staff

28
Q

what is capital intensive production

A

-lots of machines
-not a lot of staff

29
Q

Why does a business need to keep stock

A

-need a minimum amount of stock (buffer stock)
-never run out of stock
-must order supplies at the right time so that supplies are replenished when tock is getting low (Re-order level)
-need to know how much stock to re-order (Re-order quantity)
-need to know how long our supplies will take to supply our stock when we put in another (lead-time)

30
Q

Stock control graph

A

Y axis-stock level
X axis-time in weeks
Maximum stock level
Re-order level
Minimum stock level
Buffer stock
Lead time

31
Q

What are the consequences of poor stock control

A

-stock may run out
-if got too much stock it may go bad or lose quality
-potential loss of customers if not enough supply
-storage area
-computer recors
-need staff to manage stock area
-cash tied up in stock

32
Q

Just in time

A

Stock delivered where and when you need on the production line

33
Q

Positives of Just in time

A

-don’t waist money and space on buffer stock
-don’t have to order it instead
-less wastage
-less capital tied up in stock, therefore reduced average costs of production of each items.

34
Q

Negatives of just in time

A

-little room for error
-business may not be able to cope with unexpected increase in demand
-if deliveries are late the firm may need to hault production
-will not gain discounts for bulk purchase
-higher admin costs, as business needs to place orders

35
Q

Quality is

A

meeting the needs and experiences of customers

36
Q

Benefits of good quality

A

-can charge a higher price
-better reputation
-higher profit
-higher customer retention
-make products easier to place (more likely to stock)
-allows a premium price
-allows brand building and cross marketing

37
Q

Limitations/Drawbacks of poor quality

A

-bad reputation
-lower customer retention
-lower profit
-retailers unwilling to stock
-may impact on other products
-may have to price discount

38
Q

What is quality control

A

Detecting faulty products at the end of the production line

39
Q

Advantages to quality control

A

-filters out bad products

40
Q

Disadvantages of quality control

A

-have to hire someone/teams to check
-time-consuming

41
Q

What is quality assurance

A

The production is checked at every stage and every worker is responsible for making sure that the product meets a quality standard

42
Q

Benefits of Quality assurance

A

-don’t have to hire more staff, workers already do it
-Ensures product is not faulty Stops customer complaints/gives better customer satisfaction

43
Q

Drawbacks of Quality assurance

A

-Time consuming to train staff
-Costs a lot of money to train staff
-staff may not like the extra responsibility

44
Q

What is quality circles

A

A group/team of employees that meet to solve production problems and suggest improvements

45
Q

Advantages of Quality circles

A

-motivates employees
-saves/money

46
Q

Drawbacks of quality circles

A

-nees a certain type of management (democrat)

47
Q

What is Total quality management

A

Where quality is the most important thing throughout the business and it puts its customers first

48
Q

Advantages of Total Quality management

A

-garentees quality
-loyal customers
-builds reputation

49
Q

Disadvantages of Total Quality management

A

-expensive

Business-T (11 decks)

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