2.4 Flashcards
(47 cards)
Resource management definition
The process of creating the product or service and delivering it to the customer ensuring the customer needs are met
What are the 5 steps in resource management
Design - product is designed to meet customer needs
Establishing the supply chain - the steps taken to get the parts from suppliers, to the factory and then to the customers
Working with suppliers - need to ensure supplers are reliable
Managing quality - having quality objectivies
Achieving high levels of efficiency - maximising outputs whilst minimising inputs
Factors to consider when picking a supplier
Cost of materials/products
Payment terms
Delivery - speed , cost and reliability
Quality
Availability of necessary quantities
Level of trust/relationship
How will complaints/issues be dealt with
Production definition
The process a product takes from being transformed from inputs to outputs
The key methods of production
Job
Batch
Flow
Cell
Automation definition
Machines/robots do the work
Job production definition
The production of one off items to meet the needs of each individual
e.g. cake maker
Pros and cons of Job production
Pros:
Low set up cost initially
Products can be tailored to suit individual needs
Premium price
High quality
Allows to differentiate from competitors
Cons:
Difficult to achieve economies of scale
Requires skilled labour
Time consuming
Goods are expensive so may limit the market
Output will be limited
Batch production definition
Identical items are produced in groups each item passing through the production process at the same time
e.g. Baker , clothers manufactur
Pros and cons of Batch production
Pros:
Increase flexibility - can vary the product that is produced with the same machinery
Can produce large quantities
Economies of scale
Cons:
Downtime when switching production to a new product
Can be high levels of waste
Flow production definition
Organised so that the items to be made flow round the factory in a continuous process until finished
Cell production definition
Organised into groups and then teams are set at workstations and see a product through to completion
Productivity definition
The output per unit of input per time period
Labour productivity definition
The output per worker per period of time
Capital productivity definition
The output produced per machine over a period of time
Factors affecting productivity
Specialisation and the division of labour
Education and training
Motivation of workers
Working practices
Labour flexibility
Capital productivity
Efficiency definition
Producing a level of output where av erage cost is minimised
Factors influencing efficiency
Introducing standardisation
Outsourcing
Relocating
Downsizing
Delayering
Investing in new technology
Lean production
Kaizen
Pros and cons of capital intensive strategies
Pros:
Generally more cost effective if large quantities are produced
Macinery is often more precise and consistent
Machonery can operate 24/7
Easier to mange then people
Cons:
High set up costs
High delays and costs - high maintance and repairs
Could be inflexible
Pose a threat to workforce and morale
Pros and cons of labour intesnsive strategies
Pros:
More flexible
Cheaper for smaller scale production and place with lower wages e.g. China
People are creative and can help solve issues
Cons:
More difficult to manage
People can be unreliable
Cannot work without breaks and holidays
People sometimes need to be motivated to improve performance
Capacity utilisation definition
The use that a business makes of its resources
Capacity utilisation formula
current output / maximum output x 100
Under utilisation definition
A business is producing less than capacity
Over utilisation definition
A business is running at full capacity and straining resources
