Resource Mangement Flashcards
(22 cards)
What is Capacity Utilisation?
the extent to which the maximum capacity for output that is being used
What is the formula for Capacity Utilisation?
Current output
_________________. X 100
Maximum possible
Output
How can Capacity utilisation be improved?
- Increase demand through a price cut
- Special deals
- Making staff redundant
- Sell assets
- lease capacity to other businesses
What is stock control?
The flow of stock I’m a business, it concerns the ordering and management of raw materials, components, work in progress and finished goods
What are the implications of under-utilisation?
- Higher fixed cost per unit
- Unmotivated staff standing around, not busy
- Business may need to rationalise
- Increase flexibility of business
What are the implications of over-utilisation?
- Can damage reputation of the business
- In manufacturing it can put too much strain on resources
- Staff may do too much overtime and so have accidents when tired
- Means there is no time to maintain machinery or train staff
- Quality suffers as mistakes are made in production
What is the buffer stock level?
stocks which are held in case there is unforeseen rise in demand or a problem with supply
What are the advantages of bugger stocks?
• Holding buffer stocks means that a business can easily respond to changes in consumer demands
• Holding buffer stocks means that if the suppliers cannot deliver on time that production will not be affected
What are the implications of poor stock control?
- Loss of customer goodwill
- Loss of sales revenue
- Damage to reputation
- Disruption to production
What is just in time delivery?
A business orders and gets the stock delivered on the same day rather than keeping the stock in a warehouse
What are the advantages of JIT?
• As parts are ordered as they are needed there is no wastage
• Parts are not warehoused which is a massive cost saving in terms of premises and staff
• Stock is less likely to go out of date
• The business will improve their cash flow, as their money is not tied up in stock
What are the disadvantages of JIT?
• The business won’t be able to meet unpredicted surges in demand
• The business won’t be able to quickly replace damaged parts
• If the delivery does not turn up in time this can stop the whole production line, which is costly
What are the 7 deadly wastes?
- Over production
- Waiting time
- Transportation time
- Excess processing
- Excess stock
- Excess motion
- Product quality
What is the competitive advantage?
A feature that gives one business an edge over its rivals
What is competitiveness
The extent to which a firm can stand up to - or beat - its rivals
What is stockholding cost?
The overheads resulting from the stock levels held by a firm
What is quality?
How well a product or service does what it was designed to do
What is quality control?
Checking and reviewing work that has already been done
What is quality assurance?
the maintenance of a desired level of quality in a service or product, especially by means of attention to every stage of the process of delivery or production
What is TQM?
A management approach change in business culture that puts quality at the heart of everything
What are the advantages of TQM?
✓Not paying for inspectors
✓Empowered employees are
motivated (esteem needs met)
✓Improved quality therefore more satisfied customers
✓Enhanced reputation
✓Builds good partnerships with
suppliers
✓More involved workers
✓Less development time for new products
What are the disadvantages of TQM?
Spunk
