2.4.1 Resource Management Flashcards
(22 cards)
production definition
process of making a good or providing a service
iinvolves using the factors of production to turn inputs into finished products that can be sold to customers
job production definition
method of productionwhere the produczion of a single good/service is carried out one at a time involves producing this good to specific requirements to customers
- unique to customer specificatins
- labour intensiv
- high costs time and craftsmanship
- slow
job production pros and cons
+ high qual output – skilled labour
+ customised to customer needs
+ greater job satisfaction
+ flecibility
-labour intensive - skilled - more costs
-time consuming
-expensive as no EOS
-harder to plan
Batch production definiton
a manufacturing prcess in which compenenrs are productes in groups
- limited number od identical product
- standertised process within each batch
- some flexibility –> differ in features
- more efficient
Batch production pros and cons
+ easier and more efficient to check qual –> remain good reputation
+ lower unit costs –> moer one item at time
+ some flexibility –> varied between batches
+ efficient and repeatable prossed
-downtime between batchen - cleaning or reset –> reduces productivity
-storage for unsold batches
-less personalized
-mistakes in one batch result in large amount of waste
flow production definition
manufacture of a product in a continuous process –> items moves steadily through a series of stages on a production line
- identical
- work done in sequence –> machines or worders at set stations
- capital intensive
- large volumes quickly and efficiently
flow production pros and cons
+ efficeint –> meet high demand quickly
+ low unit costs –> spreads fixed costs –> high EOS
+ consistent qual –> reduces mistakes
+ less labour needed
-high set up cost
-low flexibility
-boring for workers
-breakdowns stop everything –> delays and lost output
cell production definition
method of production where employees are organised into multiskilled teams with each team responsible for a particular part of the prodcution process –> prodcution moves from one cell to the next as it is completed
- within cell variety of taksks –> increases motivation and flexibility
- each cell responsible for quality and completion of its section
- often arancged in u shape or sequence –> more communication
- mix of efficiency and flexibility
cell production pros and cons
+ teamwork –> more involves and valued –> incrfease productivity
+ greater flecibility –> changes in demands and product time –> more responsive to customer needs
+ improved qulity control
+ shorter lead times –> deliver quickly to customers
-skilled and well-trained workers –< expensive
-output slower than flow –> affects EOS
-risk of imbalance –> one cell slower all problem
-higher initial setup cost –> rearenging equipment into cells anf training teams
productivity definition + formula
measure of how efficiently resources are used in a business - it shows how much output is produced by each worker or machiene in a given period of time
Labour productivity= totsl output (in a time period) / number of workers
factors influencing productivity
- specialisation and division of labour
- employee motivation
- skills, training, education
- business organisation and working practises
- investment in capital equipment
specialisation and division of labour pros and cons
+ increased effeciency–> faster more skilled in specific task–> increase output per worker
+ lower unit cost –> reduces time waste between switching tasks –> cost savings
-repetitive work reduce motivation –> more mistakes lower productivityover time
-overdenpendacne on individuals –> absence production stop cause delays and reduced efficiency
employee motivation pros and cons
+ increase output without neededing more staff
+ stay with business –> lower recrutment and training costs –> better reputation
-financial incentives can be costly and work only in short term –> reduce profit margins
-when overused pressure hit targets lower quality or morale –> increased errors, complaints and burnout
skills, training, education pros and cons
+ trained workers fewer istakes and less uspervision
+ more efficiently and flexibly –> adapt to changes in demand
-training expensice and time-consuming –> disrupetion to output
-skills outdated if not refreshed regularly –> invest in training again
business organisation and working practises pros and cons
+ efficient layout and scheduling improve workflow
+ flexible working –> engages and motivates staff
-poor organisation lead to confusion and delys –> slows production and productivity
-frequent changes ini working practicrs may be disruptive –> lower staff morale
investment in capital equipment pros and cons
+ machines work faster and more accuratey –> consistent quality
+ reduces lon term labour costs –> most cost-effectely over time
-high upfront cost to buy and install
may lead to job losses due to automation –> damage reputation and affect staff morale
pros and cons of raising productivity
+more output same resources - costs lower - charge ower prices or same prices witrh big profit margins–> increase competitiveness
-high output cause stress and demotivation in workers –> compromise quality –> costly mistakes more liekly to occur –> bad reputation —> less competitive
efficiency definition and formula
making the best use of all resources odf a business , minimal waste + average costs will be lowest when efficiency
unit costs = total costs/total output
factors influecning efficiency
- introduction standartisation - use unifrom resources or produce uniform product - not flexible
- outsourcing - work given to specialists outiside business
- relocating - moving bsuines to new site e.g. lower rent
- downsizing - reducing capacity and closing unprofitable divisions
- delaxering - reducing staff at a particular level
- investin in new tech - quicker, more accurate, more capable
- lean production - use fewer resources in prduction e.g. factory space, materials
- kaizen worker coming up with ideas to improve quality , reduce waste and increase efficiency
- just in time - minimise or eliminate stock held by business
capital intensive strategies pros and cons
+ more cost effecitve if large quantities
+ machines more precise and consistent
+ machiones operate always
+ machines easier to manage
-huge set uo costs
-huge delays and costs if m. breaks down
-inflexibe
-threat to workforce and reduce moral
labour intensive strategies pros and cons
+ more flexible than capital
+ cheaper in small scale
+ cheaper for large scale in countries like india and china
+ peope creative and solve problems and make improvements
-people more difficult to manage than machines
-people unreliable - e.g. sick
-people need breaks
-people need to be motivated
capital or labour intensive factors
nature of product
relative costs of capital and labour
size of the firm
