Theme 2 Section 9 Resource Management

Question 1

Job Production

Answer 1

Unique products, wedding dress, high prices

Question 2

Flow Production

Answer 2

Assembly line (identical products) chocolate bars, continuous.

Question 3

Batch Production

Answer 3

Small batches different products, t-shirts then dresses.

Question 4

Cell Production

Answer 4

Divided into tasks, each group responsible for a part of each car, increases productivity.

Question 5

Productivity

Answer 5

Rate of production from each input (human worker) or machine.

Question 6

Machines Increasing Productivity

Answer 6

Completes tasks faster, more hours each day

Question 7

Machine Drawbacks Productivity

Answer 7

Old/maintenance, production stoppages, reduces productivity.

Question 8

Human Workforce Increasing Productivity

Answer 8

Best/quickest methods, improve productivity, motivates staff, feel more valued.

Question 9

Piecework

Answer 9

Increases productivity, paid only for units produced, work faster.
Reduction in product quality.

Question 10

Efficiency

Answer 10

Production at an overall minimum average costs.

Question 11

Labour-Intensive Firm

Answer 11

More workers tan machinery, NHS need skilled workers to solve problems to patients.

Question 12

Labour-Intensive Firm Advantages

Answer 12

Retrained, carry out new tasks.
Solve problems, suggest how to improve quality.

Question 13

Labour-Intensive Firm Disadvantages

Answer 13

Hard to manage people, unreliable need breaks/holidays.
Wages increase, cost of production increases.

Question 14

Capital-Intensive

Answer 14

Larger firms use more machinery than workers.

Question 15

Capital-Intensive Advantages

Answer 15

High Initial Investment, long term cheaper.
More precise, consistent quality.
24/7 easier to manage.

Question 16

Capital-Intensive Disadvantages

Answer 16

Expensive to buy/maintain, difficult for small firms.
Suited to one task, inflexible.
Workers demotivated, fear of replaced by machinery.

Question 17

Capacity and Formula

Answer 17

Maximum output produced in given period without buying fixed assets, machinery.
Current Output/Maximum possible Output x 100

Question 18

Over-utilisation (100% Utilisation)

Answer 18

No downtime, machines on all the time, breakdown delays productivity.
No margin error, has to be perfect, stress on managers leads to mistakes.

Question 19

Over-utilisation can Increase Capacity

Answer 19

Working 2-3 shifts a day, weekends, bank holiday.
Buy more machines, affordable, if staff can operate them.

Question 20

Under-utilisation

Answer 20

Inefficient, business not getting good use out of machines and facilities.
Reduce motivation, not enough work.

Question 21

Fix Under-utilisation

Answer 21

Changing Marketing Mix, promotion, price, distribution.
Takes customers from competitors, exit market, demand increases.

Question 22

Short-Term changes in Capacity Utilisation

Answer 22

Flexibility, seasonal goods towards decline and special orders.

Question 23

Long-Term Capacity

Answer 23

Market Research, predict future demand, not 100% certain.
Lower Unit Costs, if predictions true.

Question 24

Stock (Inventory)

Answer 24

Minimise stock, costs. Depends on size of stockrooms

Question 25

Buffer Stocker (minimum stock level)

Answer 25

Minimum level of stock, raw materials/goods don’t run out.

Question 26

Lead Time

Answer 26

Time it takes for goods to arrive after ordering from supplier.
Longer lead time, more buffer stocks held.

Question 27

Re-Order Quantity

Answer 27

Amount business orders from supplier.
Stock level at which is re-ordered is re-order level.

Question 28

Stock Control Diagram

Answer 28

Managers to analyse and control over period of time.

Question 29

Buffer Stock Benefits

Answer 29

Avoid running out of stock, high demand products.

Question 30

Buffer Stock Drawbacks

Answer 30

Storage Cost, rent, bills.

Question 31

Poor Stock Control

Answer 31

High stock-out Costs, manufacturing firm, running out of raw materials, production stopping, workers, expenses still paid, demotivating staff.

Question 32

Lean Production

Answer 32

Minimise waste whilst improving rate of output and quality of products but holds little stock

Question 33

Just-In-Time

Answer 33

Reduces waste, little stock as possible.
Stage Costs Reduced.
Frequent deliveries.

Question 34

Quality

Answer 34

Meeting or exceeding consumer expectations of a product.

Question 35

Quality Control

Answer 35

(Quality Inspector) Checking goods after made or from supplier, anythings wrong.

Question 36

Quality Assurance

Answer 36

Introducing production measures in production process, prevent errors before goods made.

Question 37

Total Quality Management

Answer 37

Every employee in every department focus on quality to improve overall quality of products.

Question 38

Total Quality Management Advantages

Answer 38

Every employee improving quality, bond as a team.
Boost reputation, good quality.
Fewer faulty products, less waste.

Question 39

Total Quality Management Disadvantages

Answer 39

Not see immediate improvement.
Demotivate Staff, lots of effort.
Expensive, training employees.

Question 40

Quality Circles

Answer 40

Meet to solve quality problems, increase productivity, motivation.

Question 41

Kaizen (continuous improvement)

Answer 41

Lean production Improving work overtime, reduce waste as constantly evaluating.