2.4 Resource Management

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What are the methods of production?
Job, batch, flow, cell
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What is the productivity formula?
outputs / Inputs per time period
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What factors influence productivity?
Level of investment in modern equipment, ability level of those at work, improve employee motivation
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What is the link between productivity and competitiveness?
As lower productivity inevitably causes higher labour costs per unit, this makes UK producers less competitive with our rivals
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What are the factors that influence efficiency?
Level of wastage, what technology is being used, if the managers have found balance between the variable factors that affect efficiency
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What is involved in Labour-intensive production?
Labour costs form a high % of costs, low financial barriers to entry, necessary for management to focus on the cost of labour, highly flexible
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What is involved in capital-intensive production?
large % of its total costs tied up in fixed costs, high financial barriers to entry, can keep producing in a high-cost country because Labour costs are low, inflexible
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How do you calculate capacity utilisation?
Current output / Maximum possible output x100
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What are the implications of over-utilisation of capacity?
If demand rises further it has to be turned away, struggle to service machinery, demotivating
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How can you improve capacity utilisation?
Increase demand, cut capacity (eg cutting night shift), selecting the best option (eg higher demand at Christmas)
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What are the 4 sections of a stock control diagram?
Stock levels, maximum stock level, re-order level, minimum stock level
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What is buffer stock?
Stock to fall back on if supplies don't arrive on time
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What can too much stock lead to?
Opportunity cost (prevents investment), cash flow problems (insufficient cash), increased storage costs, increased financial costs, increased stock wastage (greater risk it goes out of date)
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What can too little stock lead to?
Lost orders, worker downtime, loss of the firm's reputation
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What is Just-in-time management of stock?
Attempt to operate with a zero buffer stock
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Whats the competitive advantage from lean production?
Higher levels of labour productivity, requires less stock, creates substantial marketing advantages (fewer defects, fewer hours needed for a new product
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What is quality control?
Traditional way to manage quality, based on inspection
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What is quality assurance?
Assures customers of good quality. Done within the business. Fault that it just encourages staff to tick boxes
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What is top quality management?
The business considers quality in every part of the business process
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What are quality circles?
A group of employees who meet together regularly for finding problems and recommending ways to fix the process
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What is continuous improvement (kaizen)?
The idea of employees having a job to do and finding ways to improve it
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What will a good-quality product do?
Generate repeat purchases, allow brand building and marketing benefits, allow a premium price, make products easier to place
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Other cards in this set

Card 2

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What is the productivity formula?

Back

outputs / Inputs per time period

Card 3

Front

What factors influence productivity?

Back

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Card 4

Front

What is the link between productivity and competitiveness?

Back

Preview of the front of card 4

Card 5

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What are the factors that influence efficiency?

Back

Preview of the front of card 5
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Comments

CIiffin

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this was very helpful, although don't just use this resource for revising this section as some flashcards are missed because of repetitive answers,  e.g what implications of high capacity utilization should have another about working at a low capacity utilization, although its obvious, reduced sales, less profit, wasted labour costs etc.

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