2.4 Flashcards
Productivity
quantity produced per input
Efficiency
Getting the most out of your resources
What are the 4 methods of production and what do they mean
- Job = one off products
- Bach = small group of identical products
- Cell = production goes through individual stages
- Flow = continuous production
What are the 2 types of production
Capital intensive = using machinery to manufacture
Labour intensive = using humans to manufacture
Capacity Utilisation and how its calculated
The % of max available output that is being utilised
Actual output/max output x 100
Why is Capacity utilisation important
The higher the CU, the more units a business produces. This allows fixed costs to be spread over more units, which leads to lower unit costs
How can you improve capacity utilisation
- Increase workforce hours
- Outsource production
- reduce maintenance
What is buffer stock and where is it shown on a stock control graph
Minimum stock level a business will have
The lowest line of a stock control graph
What is the re order level
When stock reaches this level, it must be re ordered
What is lead time and where is it shown on a stock control graph
The time it takes for stock to come after being re ordered
In between the re order level and maximum stock level
What is Just in time stock control and name one advantage/disadvantage
Ordering stock just in time for when it is needed (less stock but more frequently)
+ reduces waste and storage costs
- relies heavily on supplies
What is lean production
An approach where theres a focus on cutting waste while not negatively affecting quality
What are the 4 methods of managing quality of products
- quality assurance
- kaizen
- quality control
- total quality management
Quality control
Checking quality of output at the end of production
Quality assurance
Checking quality of output during production process
