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Flashcards in 2.4 resource management Deck (33)
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1

Define job production

What are the advantages and disadvantages

The business concentrates on producing a single unit at a time

A
Charge higher prices as its tailored to the customers specific needs
High levels of motivation as each product is different

D
Cost per unit is high, due to low productivity and high skill
Recruitment can be hard as high skilled workers are needed

2

Define batch production

What are the advantages and disadvantages

The manufacture of a number of goods in progress before moving on together to the next stage of production

A
Allows variation in the product made
High rates of productivity

D
High fixed costs as specialist machinery is needed
Cost per unit is higher than flow production

3

Define flow production

What are the advantages and disadvantages

Units move directly from one operation to the next in a continuous sequence

A
Unit labour costs are very low
Huge volumes produced allows high demand in mass markets to be met

D
High initial costs of capital
Products are identical - lack of motivation

4

Define cell production

What are the advantages and disadvantages

The production line is organised into small groups (cells) with each each developing a responsibility for the finished product

5

What method of production would a supplier to primark use

Flow production to meet the constant consumer demand and to get economies of scale , reducing average costs

6

Define productitivty

The output of a person/machine per time period

7

What is the formula for labour productivity

Output per time period / number of employees

8

How can productivity be improved

Training employees
Improving motivation
Investing in better capital
Better quality raw material
Improved organisation of production

9

Why would a firm aim for lower productivity

To reduce waste
To not over produce
To maintain high levels of motivation for employees

10

Define efficiency

Is about making the best use of the firms resources to maximise production and minimise costs

11

What is labour is intensive production

What are the advantages and disadvantages

Where labour is the main method of producing goods and
services

A
Gives a USP - charge higher prices
Better reputation

D
Higher variable costs
Chance of human error and absenteeism
Humans have to be trained and motivated

12

What is capital intensive production

What are the advantages and disadvantages

Where machines are the main method of producing goods and services

A
Consistency in production
High rates of productivity
D
Have a high set up and maintenance cost

13

What are ways of improving efficiency

Reducing overheads
Relocate to another country (lower labour costs)
Redesigning the product so its cheaper or easier to make
Reducing waste in the production process

14

Define capacity utilisation

Measures the proportion of current output to maximum possible output for a given period of time

15

What is the formula for capacity utilisation

= actual output / maximum possible output x 100%

16

What are ways of improving capacity utilisation

Increase workforce hours
Improved marketing
Balancing seasonal demand

17

Define stock

The value of a product kept on premises at any one time

18

Define stock control

The attempt by a business to ensure stock levels are managed efficiently

19

What are the types of stock control


Explain them

Just in case - business keeps a certain amount of stock in reserve to allow for possibilities like late deliveries or unexpected demand

Just in time - inputs into the production process arrive only when they are needed.

20

Explain maximum and minimum stock level and reorder level in a stock graph

Explain lead time

Maximum stock level is the stock after a delivery from suppliers

Minimum stock level is the minimum level stock can reach

Reorder level is when the business orders stock from a supplier

Lead time is the time it takes to manufacture and deliver stock

21

Define waste

Anything that does not add value to the product

22

Define lean production

Aims to minimise cost and enhance quality by trying to reduce waste

23

Define quality

The features of a product which satisfy customer needs

24

Define quality control

What are the advantages and disadvantages

The process of inspecting goods at the end of the production process

A - maintains high quality
D- if it is done through sampling it cannot be trusted

25

Define quality assurance

What are the advantages and disadvantages

Inspecting goods at each stage of the production process

A - quality system at every stage of production
D- may encourage complacency

26

Define Quality circles

Brings together to identify potential improvement in product quality

27

Define Total Quality Management

What are the advantages and disadvantages

Getting all workers to take responsibility for building in better quality

A- Becomes deeply rooted in the firms culture
D- High costs as it requires extensive training

28

Define Kaizen

Continuous improvement by small groups to try and improve quality

29

What is under utilisation of capacity

Is when output is less than the maximum possible, leading to higher average costs

30

What is over utilisation of capacity

Is when output is more than the maximum possible

Would not be able to accept new orders, customers,are lost to competitors