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Flashcards in 2.4 resource management Deck (59)
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1

what is job production?

- a method of production that involves employing all factors to complete one unit of output at a time

2

what are advantages of job production?

- customer requirements and changes can be handled
- associated with higher quality
- employees can be better motivated
- a flexible job production method`

3

what are disadvantages of job production?

- individual cost of one unit may be high
- higher labour costs
- usually reliant on high skill

4

what is batch production?

- method of production that involves completing one operation at a time on all units before performing the next

5

what does batch production involve?

- similar items are produced together
- each batch goes through one stage of production before going on to the other

6

what are the aims of batch production?

- concentrate aims
- achieve better use of equipment

7

what are advantages of batch production?

- cost saving
- still allows customers some choice
- products produced by specialist workers

8

what are disadvantages of batch production?

- takes time to switch production from one batch to another
- requires business to maintain higher stock of raw materials

9

what is flow production?

- large scale production of standard product, where each operation on a unit is performed continuously one after the other, usually on a production line

10

what are advantages of flow production?

- cost per unit is decreased
- suitable for manufacture of large quantities
- less need for training and skills

11

what are disadvantages of flow production?

- very long set up time
- high raw material costs
- production is shut down if flow is stopped

12

what is cell production?

- producing a family of products in a small self contained unit within a factory

13

what is production?

- the transformation of resources into goods and services

14

what is labour productivity?

- the amount of output each unit of labour produces

15

what is productivity?

- the output per unit of input per time period

16

what is the formula for labour productivity?

total output (per period of time)
---------------------------------------------
average number of employees

17

what factors effect productivity?

- training
- motivation
- working practices
- capital productivity
- labour flexibility

18

what is efficiency?

- producing a level of output where average cost is minimised

19

what is downsizing?

- reducing capacity i.e. laying of workers and closing unprofitable divisions

20

what are the advantages of downsizing?

- cost saving and increased profit
- a leaner, more competitive operation
- removal of unprofitable parts of business

21

what is internal economies of scale?

- arise form the increased output of the business itself

22

what is external economies of scale?

- occur within an industry e.g. all competitors benefit

23

what is buying economies?

- buying in greater quantities usually results in a lower price (bulk buying)

24

what is technical economies of scale?

- use of specialist equipment or process to boost productivity

25

what is the formula for average cost per unit?

total production cost in period
----------------------------------------------
total output in period

26

how does a firm benefit from external economies of scale?

- having specialised suppliers close by
- access to research and development facilities
- pod of skilled labour to choose from

27

what is lean production?

- a approach to operating that focuses on the reduction of resource use

28

what does lean production help do?

- raise productivity
- reduces cost
- reduces number of defective items
- improve reliability and speeds up product design

29

what is kaizen?

- continuous improvement

30

what is labour intensive?

- production relies on using labour resources