Flashcards in 2.4 resource management Deck (59)
what is job production?
- a method of production that involves employing all factors to complete one unit of output at a time
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`
what are disadvantages of job production?
- individual cost of one unit may be high
- higher labour costs
- usually reliant on high skill
what is batch production?
- method of production that involves completing one operation at a time on all units before performing the next
what does batch production involve?
- similar items are produced together
- each batch goes through one stage of production before going on to the other
what are the aims of batch production?
- concentrate aims
- achieve better use of equipment
what are advantages of batch production?
- cost saving
- still allows customers some choice
- products produced by specialist workers
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
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
what are advantages of flow production?
- cost per unit is decreased
- suitable for manufacture of large quantities
- less need for training and skills
what are disadvantages of flow production?
- very long set up time
- high raw material costs
- production is shut down if flow is stopped
what is cell production?
- producing a family of products in a small self contained unit within a factory
what is production?
- the transformation of resources into goods and services
what is labour productivity?
- the amount of output each unit of labour produces
what is productivity?
- the output per unit of input per time period
what is the formula for labour productivity?
total output (per period of time)
average number of employees
what factors effect productivity?
- working practices
- capital productivity
- labour flexibility
what is efficiency?
- producing a level of output where average cost is minimised
what is downsizing?
- reducing capacity i.e. laying of workers and closing unprofitable divisions
what are the advantages of downsizing?
- cost saving and increased profit
- a leaner, more competitive operation
- removal of unprofitable parts of business
what is internal economies of scale?
- arise form the increased output of the business itself
what is external economies of scale?
- occur within an industry e.g. all competitors benefit
what is buying economies?
- buying in greater quantities usually results in a lower price (bulk buying)
what is technical economies of scale?
- use of specialist equipment or process to boost productivity
what is the formula for average cost per unit?
total production cost in period
total output in period
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
what is lean production?
- a approach to operating that focuses on the reduction of resource use
what does lean production help do?
- raise productivity
- reduces cost
- reduces number of defective items
- improve reliability and speeds up product design
what is kaizen?
- continuous improvement