F296 - Production

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  • F296 - Production - Sheet 2
    • Location Of Industry depends on:
      • Globalisation
        • Globalisation is happening because:
          • Rise of Multinational Business
          • Growing International Trade
          • Increasing Global Strategy
        • Factors that affect globalisation:
          • Deregulation of Business
          • Consumer Tastes
          • Technology
          • Growing Markets and Competition
          • Transport and Communication
        • Effects of Globalisation on Business:
          • Economies Of Scale
          • Meeting Customers Expectations
          • Choice Of Location
          • Competition - USP/Added Value
          • Mergers and Joint Ventures
      • Type of Market/Costs
      • Cost of Site/Materials
      • Government Initatives
      • Location of Consumers
      • Competition
      • Infrastructure
      • Type of Business
      • Planning Regulations
    • Types of production
      • Flow/Mass
        • High set up costs
        • Standardised products can be produced quickly
        • If the line stops, the whole process stops
        • Competitive advanatge
        • Repetitive tasks lead to low morale
        • Little downtime
      • Cell
        • Might cause confliction between employees
        • Better control by management
        • Expesnive to implement and training costs
        • Better communication
      • Batch
        • Large quantities made at once
        • Faster method of production
        • Unit costs decreases per batch
        • Down time can slow production
        • Increased storage costs due to high stock levels
        • Variation of batch is limited
      • Job
        • Customer needs met exactly
        • High quality
        • Easy to motivate workers and job satisfaction
        • Higher production costs
        • Slow process
        • Hard to find labour
    • Specialisation and Division of Labour
      • Specialisation is: where business employee with specialist skills to do certain jobs that require these skills
        • Easier to focus on tasks given
        • Some tasks are automated saving long term costs
        • Time efficient
        • Division of Labour is: where a job is broke into specialist tasks and it goes down a proudction line and is ceahper
          • Results in poorer quality
          • Tasks are reptitive so become boring
          • Higher wages for increased skill
      • Division of Labour is: where a job is broke into specialist tasks and it goes down a proudction line and is ceahper
        • Results in poorer quality
        • Tasks are reptitive so become boring
        • Higher wages for increased skill
    • Gantt Charts
      • Doesnt idenify EST (Earliest Start Time) and LFT (Latest Finishing Time)
      • Shows both time and resource allocation
      • Cant identify critical activities
      • Easy to monitor
    • Productivity
      • Generalises worker output
      • Open to interpretation
      • Easy forumlas
      • Figures may be incorrect and give false figures
      • Productivity can be improved by:
        • Reducning number of workers
        • Better motivation
        • High levels of training
        • Shifts can be reorganised
        • Ergnomic design factors
        • Updated Technology
        • Effective managment strategies
    • Capacity Utalisation
      • CAPACITY UTALISATION = ACTUAL OUTPUT / MAX POSSIBLE CAPACITY X100
      • Over Capacity
        • Can be used for short term use when demnad is high
        • Waste will increase
        • Increased working hoursby employees
        • Overall costs will increase
      • Under Capacity
        • Allows business to be able to grow
        • Have extra capacity for when a spike in demand occurs randomly
        • Seasonal demand
        • Could show inefficient product process
      • Full Capacity
        • Little maintance support
        • Fewer resources are wasted
        • Level of quality may be effected
        • Average unit cost will fall
    • Human Resource Management
      • Motivational stratgeies
      • Recruitment/training
      • Delayering
      • Pay/wages
      • Absenteesim
      • Flexibility
    • Quality
      • TQM (Total Quality Management)
        • Time consuming and Expensive measure to implement
      • Kaizen
        • Less errors and waste
        • New management style will breakdown
        • Process centered
        • Employees may not mend to tthe new changes
      • Quality Circles
        • Expensive measure to put into place
        • Can gain new ideas for all parts of the business
        • May cause conflict when some staff are not involved
        • Increases quality
      • Bench Marking
        • Easy to give special attention to
        • Only spots improvements does help to change them
        • Compares facts and figures only
  • LABOUR PRODUCTIVITY = OUTPUT/NO OF EMPLOYEES
  • PRODUCTIVITY=OUTPUT/CAPITAL EMPLOYEED

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