2.4 resource management Flashcards Preview

Business Studies Theme 2 (A-Level) > 2.4 resource management > Flashcards

Flashcards in 2.4 resource management Deck (33)
Loading flashcards...
1
Q

Define job production

What are the advantages and disadvantages

A

The business concentrates on producing a single unit at a time

A
Charge higher prices as its tailored to the customers specific needs
High levels of motivation as each product is different

D
Cost per unit is high, due to low productivity and high skill
Recruitment can be hard as high skilled workers are needed

2
Q

Define batch production

What are the advantages and disadvantages

A

The manufacture of a number of goods in progress before moving on together to the next stage of production

A
Allows variation in the product made
High rates of productivity

D
High fixed costs as specialist machinery is needed
Cost per unit is higher than flow production

3
Q

Define flow production

What are the advantages and disadvantages

A

Units move directly from one operation to the next in a continuous sequence

A
Unit labour costs are very low
Huge volumes produced allows high demand in mass markets to be met

D
High initial costs of capital
Products are identical - lack of motivation

4
Q

Define cell production

What are the advantages and disadvantages

A

The production line is organised into small groups (cells) with each each developing a responsibility for the finished product

5
Q

What method of production would a supplier to primark use

A

Flow production to meet the constant consumer demand and to get economies of scale , reducing average costs

6
Q

Define productitivty

A

The output of a person/machine per time period

7
Q

What is the formula for labour productivity

A

Output per time period / number of employees

8
Q

How can productivity be improved

A
Training employees 
Improving motivation
Investing in better capital
Better quality raw material 
Improved organisation of production
9
Q

Why would a firm aim for lower productivity

A

To reduce waste
To not over produce
To maintain high levels of motivation for employees

10
Q

Define efficiency

A

Is about making the best use of the firms resources to maximise production and minimise costs

11
Q

What is labour is intensive production

What are the advantages and disadvantages

A

Where labour is the main method of producing goods and
services

A
Gives a USP - charge higher prices
Better reputation

D
Higher variable costs
Chance of human error and absenteeism
Humans have to be trained and motivated

12
Q

What is capital intensive production

What are the advantages and disadvantages

A

Where machines are the main method of producing goods and services

A
Consistency in production 
High rates of productivity 
D
Have a high set up and maintenance cost
13
Q

What are ways of improving efficiency

A

Reducing overheads
Relocate to another country (lower labour costs)
Redesigning the product so its cheaper or easier to make
Reducing waste in the production process

14
Q

Define capacity utilisation

A

Measures the proportion of current output to maximum possible output for a given period of time

15
Q

What is the formula for capacity utilisation

A

= actual output / maximum possible output x 100%

16
Q

What are ways of improving capacity utilisation

A

Increase workforce hours
Improved marketing
Balancing seasonal demand

17
Q

Define stock

A

The value of a product kept on premises at any one time

18
Q

Define stock control

A

The attempt by a business to ensure stock levels are managed efficiently

19
Q

What are the types of stock control

Explain them

A

Just in case - business keeps a certain amount of stock in reserve to allow for possibilities like late deliveries or unexpected demand

Just in time - inputs into the production process arrive only when they are needed.

20
Q

Explain maximum and minimum stock level and reorder level in a stock graph

Explain lead time

A

Maximum stock level is the stock after a delivery from suppliers

Minimum stock level is the minimum level stock can reach

Reorder level is when the business orders stock from a supplier

Lead time is the time it takes to manufacture and deliver stock

21
Q

Define waste

A

Anything that does not add value to the product

22
Q

Define lean production

A

Aims to minimise cost and enhance quality by trying to reduce waste

23
Q

Define quality

A

The features of a product which satisfy customer needs

24
Q

Define quality control

What are the advantages and disadvantages

A

The process of inspecting goods at the end of the production process

A - maintains high quality
D- if it is done through sampling it cannot be trusted

25
Q

Define quality assurance

What are the advantages and disadvantages

A

Inspecting goods at each stage of the production process

A - quality system at every stage of production
D- may encourage complacency

26
Q

Define Quality circles

A

Brings together to identify potential improvement in product quality

27
Q

Define Total Quality Management

What are the advantages and disadvantages

A

Getting all workers to take responsibility for building in better quality

A- Becomes deeply rooted in the firms culture
D- High costs as it requires extensive training

28
Q

Define Kaizen

A

Continuous improvement by small groups to try and improve quality

29
Q

What is under utilisation of capacity

A

Is when output is less than the maximum possible, leading to higher average costs

30
Q

What is over utilisation of capacity

A

Is when output is more than the maximum possible

Would not be able to accept new orders, customers,are lost to competitors

31
Q

What are the problems of too much stock

A
Opportunity cost - money used for stock could have been used better
Cash flow problems 
Increased storage costs 
Increased financing costs
Increased waste
32
Q

What are the problems of too little stock

A

Lost customers
Delays in production
Loss of reputation

33
Q

What are the ways of getting a competitive advantage using lean production

A

Higher levels of productivity, reducing labour cost per unit
Less space needed due to lower stock, lower fixed costs
Higher quality leads to a good reputation , higher prices charged
Develop new products faster, first firm on the market