2.4 Resource Management Flashcards

1
Q

What is job production?

A

One-off or small number of items produced, meets the specific requirement’s of the consumers
* Examples: - Plumbers

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2
Q

Advantages of job production

A
  • Customer requirements and changes can be handled
  • Associated with higher quality
  • Employees can be better motivated - more job satisfaction
  • A flexible production method
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3
Q

Disadvantages of job production?

A
  • high Individual cost of one unit
  • Often labour-intensive = high labour costs
  • Requires close consultation with the client
  • Usually reliant on high skills
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4
Q

What is batch production?

A

Similar items are produced together. Each batch goes through one stage of production process before moving onto next stage

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5
Q

Aims of batch production

A

Achieve better use of equipment and so produce good quality products more economically than manufacturing them individually

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6
Q

Advantages of batch production

A
  • batch reduce unit costs
  • customers have some choice
  • Allows a firm to handle unexpected orders
  • greater quality control
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7
Q

Disadvantages of batch production

A
  • timely to switch production of one batch to another
  • high inventory costs
  • Tasks are repetitive - reducing motivation & efficiency
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8
Q

what is flow production

A

product moves continuous through the production process. high volumes are produced of the same product

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9
Q

advantages of flow production

A
  • lower unit costs
  • manufacture large identical quantities
  • capital intensive - so it works constantly
  • less need for training and skills
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10
Q

Disadvantages of flow production

A
  • reliant on high quality machinery
  • High inventory costs
  • Goods are mass produced - less differentiation
  • Production is shut down if flow is stopped
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11
Q

what is cell production?

A

has the flow production line split into a number of units. each “cell” is responsible for part of the product

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12
Q

advantages of cell production

A
  • closeness of cell members, improve communication avoiding confusion
  • greater work motivation
  • workers become skilled & adaptable for future needs
  • quality improves as each cell has ownership for quality in their area
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13
Q

disadvantages of cell production

A
  • company culture has to encourage trust & participation
  • may not allow a firm to use machinery
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14
Q

definition of capacity

A

maximum output that a business can produce in a given period with the available resources

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15
Q

why is capacity important?

A

it allows the company to match the demands of the customers

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16
Q

definition of spare capacity?

A

when a business is not making full use of its available capacity, there are spare factors of production including land, labour and capital

17
Q

capital utilization formula

A

current output/ maximum possible output x 100

18
Q

drawbacks of underutilization of capacity

A
  • inefficiency - not producing maximum capacity, firms cant exploit economies of scale. may lead to an increase in average costs
  • loss of market share - operating less than full capacity, result in reduction of sales in a business
19
Q

benefit of underutilization of capacity

A

more flexibility - its level of output can change when needed, and firm has time to fix machines without stopping production

20
Q

drawbacks of overutilization of capacity

A
  • maintenance - not enough time fro machines to be maintained. machine may break down, can ruin reputation
  • inflexible - unable to increase further output, cant provide for any unexpected orders
  • staff- under excessive pressure, make more mistakes & unhappy
21
Q

benefit of overutilization

A
  • average costs of production fall and this would result in the firm becoming more competitive
22
Q

what factors can improve capacity utilization

A
  • reduce capacity
  • increase sales
  • outsourcing

as it allows the business to increase its output

23
Q

JIT - just in time

A
  • holds little stock
  • reduces waste of materials
  • cheaper costs of storage, so can charge a lower price on goods
  • need frequent deliveries and if the supplier is unreliable the firm may run out of stock
24
Q

what is quality control

A

checks goods after they’ve been made.
- quality control inspectors check others work
- eliminates faulty goods

25
what is quality assurance
introduce checks throughout the production process to prevent errors from the beginning. each product is tested at each stage of the production process - aims to get it right first time - employees check their own work
26
what is total quality management
quality is the centre of everything a business does. every employee focuses on quality to improve overall quality of the products
27
advantages and disadvantages of TQM
- boots a firms reputation - leads to less faulty products - takes a long time to instil - demotivate staff- s they have to put a lot of effort in - expensive
28
what is a quality circle
they aim to identify and solve quality problems by meeting at regular intervals. it increases motivation as all staff are involved
29
what is kaizen (continuous improvement)
lean production where employees improve their work all the time, this reduces waste