2.4 Resource Management

Question 1

Batch production

Answer 1

A manufacturing process in which components or goods are produced in groups (batches). The manufacturing of a limited number of identical products.

Question 2

Capital intensive

Answer 2

This is where output of the firm is made primarily using machine machinery/capital goods relative to the use of labour

Question 3

Cell production

Answer 3

A method of manufacturing where employees are organised into multiskilled teams, with each team responsible for a particular part of the production process

Question 4

Efficiency

Answer 4

The ability to minimise ways to therefore reducing the cost of production. Making the best use of its resources.

Question 5

Flow production

Answer 5

The manufacturer of an item/product in a continuous process

Question 6

Job production

Answer 6

A method of production where the production of a single good/service is carried out one at a time that involves producing this good/service to the specific requirements of the customer

Question 7

Labour intensive production

Answer 7

A production method that requires a higher proportion of labour than capital

Question 8

Productivity

Answer 8

Output per person/machine per period of time

Question 9

Standardisation

Answer 9

Using uniform resources and activities or producing a uniform product

Question 10

2.4.2

Capacity utilisation

Answer 10

The current output of a factory measured as a percentage of the total maximum potential output. Current output/maximum possible output X 100.

Question 11

Downsizing

Answer 11

Involves reducing capacity, such as making employees redundant. This would reduce costs, such as wages.

Question 12

Full capacity

Answer 12

The point where our business cannot produce any more output

Question 13

Over utilisation

Answer 13

The position where a business is running at full capacity and straining resources

Question 14

Under utilisation

Answer 14

The position where a business is producing at less than full capacity

Question 15

2.4.3

Buffer stock

Answer 15

Buffer stock is the minimum level of stock that is held in reserve to protect against surges in demand or late delivery by suppliers

Question 16

Inventory

Answer 16

The raw materials/work in progress held by business

Question 17

Just in time (JIT)

Answer 17

A stock control system that organises operation so the items are stock arriving immediately before they are needed for production or sale

Question 18

Lean production

Answer 18

A production method that involves using as few resources as possible in the production of a good or service. It can include concepts such as waste minimisation, just in time and TQM.

Question 19

Re-order level

Answer 19

The level of current stock when the new orders are placed

Question 20

Re-Order quantity

Answer 20

The amount of stock ordered when an order is placed

Question 21

Stock

Answer 21

Items held by the business for future sales/processing such as raw materials/work in progress/finished products

Question 22

Stock control

Answer 22

The optimum quantity of goods/components of business holds for the purpose of resale/production

Question 23

Stock control diagram

Answer 23

Shows details of inventory movement such as minimum and maximum inventory levels, re-order level and quantity and lead times

Question 24

Stock rotation

Answer 24

The flow of stock into and out of storage

Question 25

Waste minimisation

Answer 25

Producing goods and services are given quality using as few resources as possible/identification of an impact of waste minimisation

Question 26

Work in progress

Answer 26

Partially finished goods

Question 27

2.4.4 Kaizen/continuous improvement

Answer 27

The Japanese practice which places emphasis on making small improvements in all business processes as it tries to achieve a culture of continuous improvement: good processes bring good results

Question 28

Quality

Answer 28

A positive feature of a product that has no defects

Question 29

Quality assurance

Answer 29

System where the product is trapped/tested each stage of the production process. It focuses on preventing faults with products during production.

Question 30

Quality circles

Answer 30

Small groups of workers who meet regularly to discuss and resolve problems in production

Question 31

Quality control

Answer 31

A method that uses quality inspectors as a way of finding any faults. Checking that final products are of a good enough standard, capable of doing what they were intended to do.

Question 32

Quality management

Answer 32

The process of a business maintaining a desired level of excellence in a product/service by paying attention to each stage of the process

Question 33

Total quality management/TQM

Answer 33

A right first time approach ensuring that every stage of production,products are checked for quality, rather than a sample, which should eliminate any defects