Topic 2.4 Resource management Flashcards
Mrs Hudson
1
Q
Job Production
A
Producing a one off item for a one off customer
2
Q
Advantages of job production
A
- Meets individual customer needs
- High quality so can charge a higher price
- Motivated workers
3
Q
Disadvantages of Job production
A
- High production costs
- Very labour intensive
- Time consuming
- Need skilled labour
4
Q
Batch production
A
Producing a set number of identical products
5
Q
Advantages of Batch production
A
- Using the same machinery
- Lower skilled workforce - lower wages
- Employees are specialised
- Items can be changed to fit trends
6
Q
Disadvantages of Batch production
A
- Workers may be less motivated as the tasks are repetitive
- Long time between batches (cleaning equipment)
- Small batches may have high uni costs
7
Q
Flow production
A
Continuous production of one single item
8
Q
Advantages of flow production
A
- Lower average unit cost as bulk producing
- Automation means quality is always the same
9
Q
Disadvantages of flow production
A
- High set up costs because of machinery and automation
- Machinery may break
- Low motivation as tasks are repetitive
10
Q
Cell production
A
The production of items being organised into groups then the teams are sent to statins to see the product through to competition
11
Q
Advantages of Cell production
A
- Minimal handling of the product reduces costs
- Lead time is reduced
- Motivated workers
12
Q
Disadvantages of cell production
A
- May have tension in a cell
- Huge investment into machinery for each cell
13
Q
Calculating Labour productivity
A
Output / No. of workers
14
Q
Calculating Capital productivity
A
Output / No. of machines
15
Q
Factors that influence productivity
A
- Employee motivation (Motivated workers produce more)
- Skills, education and training staff
- Business organisation (Flexible workplaces improve the commitment of workers)
- New technology (increase automation can increase productivity)
16
Q
The link between productivity and competitiveness
A
- Having higher productivity will lower your costs and then you can pass these on to your customers which will make you more competitive
17
Q
Calculating efficiency
A
Output / Input x 100
18
Q
Factors that effect efficiency
A
- Employee motivation
- Technology
- Outsourcing
- Adoption of lean production techniques
19
Q
Advantages of capital intensive
A
- Low cost production
- Machines can run without breaks
- Machines are consistent and precise
20
Q
Disadvantages of capital intensive
A
- Significant start up costs
- Break downs can severely delay production
- May not be flexible
21
Q
Capital intensive production
A
- Predominately uses automation and technology
22
Q
Labour intensive production
A
- Predominately uses physical labour
23
Q
Advantages of Labour intensive
A
- Low cost
- Provides opportunities for workers to be creative
24
Q
Disadvantages of Labour intensive
A
- Workers may be unreliable as they need breaks
- Incentives may be needed to motivate staff
- Training costs may be expensive
25
Calculating Capacity utilisation
Current output / Maximum possible output x 100
26
Implications of Over - utilisation
- high level of capacity utilisation - not flexible to respond to new orders from customers
- Staff will be under a lot of pressure to produce high levels of output
- Stuggle to service machinery
27
Implications of Under - utilisation
- increased unit costs
- Provides flexibility
- The business can respond to sudden increases in demand
- Inefficient
28
Ways to improve capacity utilisation
- Outsourcing
- Increase workforce hours
- Sub contract
- Reduce time maintaining equipment
29
What is buffer stock?
- A quantity of raw materials or goods kept incase of unforeseen demand
30
Advantages of Buffer stock
- Keep up with demand
- If deliveries are delay production can carry on
31
Disadvantages of buffer stock
- Storage Cost and space
- Stock may become dated
- Opportunity cost (Holding buffer stocks ties up capital)
32
What is just in time?
- Stock is ordered as required, and delivered by suppliers 'just in time' for production
33
Advantages of just in time
- No Stockholding costs
- Cash flow is improved as money is not tied up in stocks
- Unused storage space is available for productive use
34
Disadvantages of just in time
- Bulk buying economies of scale are not generally possible
- The ability to respond to unexpected increases in demand is reduced
- Administrative costs related to frequent ordering are increased
- Unreliable suppliers (e.g. late or poor quality deliveries) can quickly halt production
35
Ways to minimise waste
- For perishable items, refrigeration and careful stock rotation
- Staff training and computer inventory management systems
36
Competitive advantage from lean production
- Lower unit costs are achieved due to minimal wastage, so prices may be lower than those offered by competitors
37
Quality control
- Inspecting the quality of output at the end of the production process
38
Advantages of quality control
- No defective items are sold
- No much staff training is required
39
Disadvantages of Quality control
- Not every item is checked
- Takes time
- The product gets to completed while defected so waste of resources
40
Quality assurance
- Inspecting the quality of production throughout the production process
41
Advantages of quality assurance
- All products are checked
- Products can be re worked as the issues are identified early
42
Disadvantages of quality assurance
- Takes a long time to check
- More staff need to be employed
43
Quality circles
- Groups of workers meet regularly to solve quality problems identified in the production process
44
Advantages of quality circles
- Can improve staff motivation as they have a say
45
Disadvantages of quality circles
- Whole group of employees have to agree
- Can cause tension
46
Total quality management
- Organisation of the business with quality at its core and with every worker responsible for quality
47
Advantages of Total quality management
- Deeply routed into the business - everything is always checked
48
Disadvantages of Total quality management
- Requires extensive training and time
- Requires commitment from the whole organisation
49
Kaizen
- Kaizen involves a business taking continuous steps to improve productivity and eliminate waste in the production process
- Changes are small and ongoing rather than significant one-off’s and are constantly reviewed
50
Competitive advantage from quality management
- Unit costs are low if a business takes a preventative approach (quality assurance or TQM)
- Low costs may allow a business to reduce its selling price to better compete with or undercut its rivals
51
Implications of poor stock control
- Storage costs
- Risk of stock being dates or ruined
- May run out of stock
- Can't meet demand
52
lean production
- Approach to management that focuses on cutting out waste whilst ensuring quality
53
What is productivity?
- The measure of the efficiency of a person, machine or process of production
54
3 types of stock
- Raw materials
- Work in progress
- Finished goods
