(2.4) Resource Management Flashcards
What is production?
When resources are changed into products
What is job production with an example?
When a business produces a one off bespoke item for a customer
E.g. weddings
What are the advantages and disadvantages of job production?
+High level of quality
+Meets customers requirements
+Can charge higher prices
- Higher costs
- Lower levels of output
- Skilled labour is expensive
What is flow production with examples?
Producing identical products on a mass scale
E.g. tooth brushes, toothpaste
What are the advantages and disadvantages of flow production?
+Very low unit cost
+Out put can be produced quickly
- Huge start up costs
- low motivation for workers
What is cell production with an example?
Multiple groups of people work on a single project
E.g.
What are the advantages and disadvantages of cell production?
+Workers become multi-skilled
-Potential rivalry between different cells. Conflict may arise if one cell is left to wait
What is batch production with examples?
Producing a group of identical products
E.g. bread, furniture
What are the advantages and disadvantages of batch production?
+can be changed to meet of the demand
+can be mechanised for certain objects
+Employees can become really good at their jobs
- Higher unit costs
- Mistakes can be catastrophic
- Workers may be demotivated with repetitive tasks
What is productivity?
The relationship between input and outputs in the economy.
What factors affect productivity?
Education and training Motivation of workers Labour flexibility Capital productivity Investments in new technology
What is the link between productivity and competitiveness?
If your firm is more productive it can help reduce unit costs. This could lead to competitive pricing
What is the formula for labour productivity?
Output/ No. of employees
What is the formula for capital productivity?
Output/ capital Employed
What is efficiency?
Making the best use of all a business’s recourses
What are some factors that may increase efficiency within a business?
Outsourcing Relocating Downsizing Delayering Investing in new technology Lean production Kaizen JIT Production
What is the difference between labour and capital intensive production?
Labour Intensive - Intensive production relies mainly on labour
Eg ready meals, hairdressing
Capital intensive - Intensive production relies mainly on capital
Eg airports, car manufacturing
What is labour intensive?
A process that requires a large amount of labour to produce its goods or services.
What is capital intensive production?
A process that require large amounts of investment to produce a good or service, therefore, having a high percentage of fixed assets, such as property, plant, and equipment (PP&E).
What is capital utilisation?
The use that a business makes of its resources
What is the formula for capacity utilisation?
(Current output / maximum Possible Output) * 100
What are the advantages and disadvantages of under-utilisation?
+Allows the business to cope with sudden increase in demand
+Workers won’t be over worked
- Fixed costs can be high
- Business won’t be making the most of its resources
- Workers may feel insecure in their jobs
What are the advantages and disadvantages of over-utilisation?
+Lower average costs
+Staff may feel they have a secure job
+Potential opportunities for overtime
- Over worked workforce
- Unable to respond to increased demand
- May not have free time (FST)
What are the ways of improving capacity utilisation?
Increased sales - Promote to encourage sales
Increased usage - Eg train companies are busy during peak hours and less busy during off peak hours
Outsourcing -
Redeployment- employees getting new job roles in the same company
