S3 resource management Flashcards
(16 cards)
What is resource management?
The process of planning and controlling how business resources (labour, materials, equipment) are used to produce goods and services efficiently.
What are the three main production methods?
Job production, batch production, and flow production.
What is job production?
Producing a one-off item tailored to a customer’s needs. It is labour-intensive and used for bespoke products.
What is batch production?
Producing a set number of identical items before switching to a different batch.
Example: baking bread in batches.
What is flow production?
A continuous production process where products move along an assembly line. It suits mass production and standardised products.
What is productivity?
A measure of output per unit of input (usually per worker).
Formula: Productivity = Output + Input
How can a business improve productivity?
Through training, better equipment, motivation, or more efficient processes.
What is efficiency?
Producing goods and services using the minimum amount of resources while maintaining quality.
What is lean production?
An approach to production that aims to minimise waste and maximise value, using methods like Just-In-Time and Kaizen.
What is Just-In-Time (JIT)?
A stock management system where raw materials and components are delivered exactly when needed in the production process.
What are the advantages of JIT?
Lower storage costs, reduced waste, and improved cash flow.
What are the risks of JIT?
Delays from suppliers can halt production; there’s little buffer stock for emergencies.
What is the purpose of quality control?
Checking products at the end of the production process to ensure they meet standards.
What is quality assurance?
A proactive system where quality is built into the production process through staff training and systems.
What is capacity utilisation?
It measures how much of a firm’s total capacity is being used.
How is capacity utilisation calculated?
Formula: (Actual Output + Maximum Possible Output) × 100
