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BM Business theme 2 > 2.4 resource management > Flashcards

2.4 resource management Flashcards

1
Q

What is production

A

transformation of resources into finished goods or services

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2
Q

What are goods

A

phsyical products

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3
Q

What are services

A

Non physical items such as hairdressing

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4
Q

What are the 4 main methods of production

A

Job production

flow production

batch production

cell production

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5
Q

What is job production

A

Producing one item at a time as ordered by the customer

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6
Q

What are the advantages of job production

A

high quality products

motivated and highly skilled workers

customised products can be made

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7
Q

What are the disadvantages of job production

A

Slow production

high labour costs

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8
Q

What is batch production

A

Groups of the same product are produced

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9
Q

Advantages of batch production

A

Workers can specialise

production can start as the previous batch runs out

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10
Q

Disadvantages of batch production

A

Requires careful co ordination to avoid shortages

money is tied up in stock

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11
Q

What is flow production

A

continuous manufacturing of standardised products

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12
Q

What are the advantages of flow production

A

low unit costs due to EoS

Rapid production

usually highly automated

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13
Q

what are the disadvantages of flow production

A

Customisation is difficult

capital equipment can be expensive

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14
Q

What is cell production

A

workers are organised into multi skilled teams, each team is then responsible for different parts of the production process

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15
Q

What are the advantages of cell production

A

more efficient than other methods

workers can share skills and expertise

high motivation as workers are in a team

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16
Q

Disadvantages of cell production

A

Extensive reorganisation of production process

team efficiency may be reduced by weak workers

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17
Q

What is productivity

A

the output per input per hour

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18
Q

What is the formula for labour productivity

A

output / number of workers

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19
Q

what is labour productivity

A

output per worker during a specified time period

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20
Q

what is capital productivity

A

measure of output of machinery during a specific time period

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21
Q

What is capital productivity formula

A

Output / number of machines

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22
Q

What are factors that influence productivity

A

Employee motivation

skills, education and training

investment in capital equipment

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23
Q

what is meant by competitiveness

A

the ability of a business to maintain or grow its sales and market share

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24
Q

What is efficiency

A

the ability of a business to use its production resources as cost effectively as possible

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25
What is the formula for average cost per unit
total costs / number of units
26
When is maximum efficiency achieved
When the cost per unit is at its lowest
27
Factors that influence efficiency
standardisation of the production process relocation or downsizing investment in capital equipment organisational restructuring adoption of lean production techniques
28
how does standardisation of the production process influence efficiency
all staff use the same components and techniques in the production process this allows for components to be bulk bought reducing variable costs
29
how can relocation influence efficiency
moving production to a cheaper location can reduce fixed costs
30
how does investment in capital equipment influence efficiency
`new machinery can increase output and lower costs
31
What is labour intensive production
mainly physical labour in the production of goods and services
32
What is capital intensive production
Mainly machinery and technology are used in the production of goods and services
33
what are the advantages to capital intensive production
low cost production when output is high usually consistent machines can run without breaks
34
what are the disadvantages to capital intensive production
significant uprfront and maintenance costs breakdowns can delay production limited flexibility?
35
what are the advantages to labour intensive production
Low cost production when labour costs are low opportunities for workers to be creative workers are flexible
36
What are the disadvantages to capital intensive production
Workers may be unreliable and require breaks incentives are needed to motivate staff training costs
37
What is capacity utilisation
The measure of the level to which a businesses assets are being used to produce output
38
What does capacity utilisation compare
Current output to the maximum possible output
39
What is the formula for capacity utilisation
(Current output / maximum possible output ) *100
40
What does a low level of capacity utilisation mean?
A business is not utilising its resources to the biggest potential. Likely to lead to increased unit costs
41
what are the positives to a low level of capacity utilisation
it provides the business with flexibility the business is able to respond to sudden increases in demand
42
What does a high level of capacity utilisation mean
the business is making the most of its assets and resources likely to minimise unit costs
43
What are the negatives of a high capacity utilisation
minimum flexibility to respond to new customer orders staff are under pressure staff may be overworked -> high staff turnover machinery may be pushed to its limits causing breakdowns
44
What are 5 ways to increase capacity utilisation
Increase sales increase usage outsourcing reduce capacity redeployment
45
How does an increase in sales cause capacity utilisation to increase
more sales means more unit to be produced
46
How does outsourcing improve capacity utilisation
subcontracting some tasks to outside the business can increase the level of output
47
How does redeployment improve capacity utilisation
move underused or unused resources to other business areas that need them
48
What does a stock control diagram illustrate
The flow of stock into and out of a business over time
49
What is the maximum stock level
The maximum amount of stock a business is able to hold.
50
What s the reorder level
The level at which a business places a new order with its supplier
51
What is the minimum stock level
Also known as buffer stock is the lowest level to which a business is willing to allow stock levels to fall
52
What is the lead time
The length of time from when stock is ordered to when it is delivered
53
What is buffer stock
a quantity of resources kept in case of stock shortages just in case
54
Advantages to holding buffer stock
Stable supply of goods incase of a rise in customer demand price stability as it avoids shortages in the market raw materials security- avoid disruption to their supply competitive advantage - good reputation for always meeting customer needs
55
What are the disadvantages to holding buffer stock
cost - expensive as it requires storage space buffer stock may become useless if demand for the product declines opportunity cost- the capital invested in buffer stock could be invested into other areas of the business
56
What are the problems that may arise if a business holds too much stock?
High storage costs risk of spoilage increases opportunity cost stock may decline in demand
57
What are the problems that may arise if a business holds too little stock?
risk of stock out stoppages in production loss of potential sales unexpected increases in demand cannot be met
58
What is JIT stock management
Just in time stock management is where stock is not stored onsite but rather order and delivered by suppliers just in time for production
59
What are the advantages to JIT stock management
Minimised storage costs close working relationships with suppliers improved cash flow as its not stuck in stocks any unused storage space can be used for production teamwork is encouraged
60
What are the disadvantages to JIT stock management
bulk buying is not possible unable to respond to unexpected increases in demand unreliable suppliers can halt production
61
What are 3 ways to minimise waste
Storage - refrigeration planning - forecasting sales tactics - reduce prices to increase sales
62
What is lean production
the minimisation of resources used in production
63
What are the benefits of lean production
less time is required as the production process is as efficient as possible fewer materials are use as there is a focus on waste reduction less labour - (capital intensive) lower unit costs better quality output
64
What does quality consider
the characteristics and features of a product to satisfy customer needs
65
What is quality control
inspecting the quality of the product at the end of the production process
66
What are the benefits to quality control
quality specialists ensure quality inexpensive and simple
67
What are the negatives to quality control
rejection of finished goods is a waste of resources little focus o0n cause of the defects
68
What is quality assurance
inspecting the quality of the product throughout the production process
69
What are the benefits of quality assurance
quality issues are identified early so products can be reworked cause of defects is the focus
70
What are drawbacks to quality assurance
Staff training and skilled workforce is required reworking the product can lengthen production
71
What is TQM
total quality management is where quality is at the core of businesses organisation and every worker is responsible for quality
72
Benefits to TQM
quality in all aspects of the business improves efficiency A culture of constant improvement exists within the business
73
Negatives of TQM
All workers must be committed and received continued training careful monitoring and control is required
74
What is kaizen
A business focuses on continuous improvements to productivity through eliminating all waste in the production process

BM Business theme 2 (5 decks)

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