2.4 Resource Management Flashcards
(59 cards)
What is job production?
Involves making one- off items to suit each customer’s individual requirements
Pros of job production
Higher quality
Flexible production method
Employees can be better motivated meaning more job satisfaction
Cons of job production
Cost per unit is very high
Reliant on staff with high skills
Relies on close consultation with the client
What is Batch production?
Makes a group of products to one specification at a time, allowing some variation in products, yet some specialisation.
Pros of batch production
Allows variation in the product being made.
Lower skilled workforce means lower wages can be paid.
Faster than job production as making a batch of identical products speeds up the production process.
Cons of batch production
More costly as specialist machinery will be needed.
Workers may be less motivated with repetitive work.
Cost per unit will be high as machinery will need to be adjusted between batches.
What is flow production?
Refers to the production of a single standardised product.
What is automation?
Means using machines to complete tasks within a process.
Pros of flow production
Unit labour costs are extremely low.
High volumes allow huge demand in mass markets to be met.
Consistent quality
Cons of flow production
High initial costs of installing production machinery.
Products need to be identical.
Repetitive work leading to low motivation.
What is cell production?
Involves organising workers into small groups/ cells that can produce a range of different products more quickly than job production allows.
Pros of cell production
Less time moving from place to place
Group working allows ideas to be generated within the cell for improvements to processes
Motivating for workers to see a completed product
Cons of cell production
Heavily reliant on people rather than automation meaning costs are high
Production volumes will not be as high as in flow production
Huge investment in machinery for each cell
When is cell production most effective?
When there is a need for flexibility but also high production volumes.
What is productivity?
Output per unit of input per time period
Formula for productivity
total output divided by no. of workers
Factors influencing productivity and efficiency
Quality/ age of machinery
Skills/ experience of workers
Level of employee motivation
Efficiency
Measures the extent to which the resources used in a process generate output without wastage leading to failing average cost of production
What is Labour intensive production?
A production process that relies heavily on human input with little use of automation
Issues with Labour intensive production
High proportion of total costs
Managing labour costs becomes critical
What is capital intensive production?
A production process that uses high levels of automation reducing the role of humans as much as possible replacing them with machines.
Issues with Capital intensive production:
Initial costs will be very high due the need of specialist machinery
Running costs will be relatively low
May offer little flexibility in terms of product variations.
What is capacity?
The term used to describe the maximum possible output of a business.
What is capacity utilisation?
The proportion of maximum capacity being used by the business.
