Operational Decisions - Labour Productivity & Methods of Production

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What does JIT do?
Reduces the waste of material by having as little stock as possible.
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What is the process of JIT?
Raw materials come out one door and go straight out the other after manufacturing
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If JIT is more flexible then...
It can easily adapt to its products, allowing suitable changes in customer requirements so customer loyalty increases
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What are the disadvantages?
No spare stock - Customers won't be supplied in cases of production strikes or when demand increases during busy, seasonal periods
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How are suppliers affected by JIT?
They must be reliable as production is lower as there isn't much stock. This causes strain to suppliers as they have to work better, affecting workers
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What does Time-Based Management do?
The aim of reducing the waste of time in production
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What must companies who used Time-Based Management be?
Flexible
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What is Time-Based Management dependent on?
Flexibility of production facilities - Example: A trainer retailer will need a sole of a trainer one week and the lace the next week
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What is a contribution involving staff to make Time-Based Management work?
Effective communication between production team and manager. Staff will need to be multi skilled - so training is required.
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What are the advantages of Time-Based Management?
Reduces lead time. The cost of holding the stock will fall. Additionally means customer needs will be satisfied quicker, increasing firm's reputation and therefore giving it competitive advantage
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What does TBM help drive?
Innovation - Decreases the time took for research and development time
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What are the negatives of TBM?
Some argue they place speed over quality. The customer might get the product quicker but it could be damaged/faulty
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If the labour productivity is raised then...
The labour costs per unit fall
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How can labour productivity be increased amongst staff?
Training staff which makes them more productive
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How can new technology increase labour productivity?
Increases the speed of the workers doing their job
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Which is a way of improving labour productivity by workforce?
Improving worker motivation
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What is the disadvantage of investing in technology to improve labour productivity?
It is very expensive so the business should decide whether it's worth such an investment
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Why might worker motivation by offering bonuses for increasing output be bad?
Due to the likelihood of rushing, it can mean quality could suffer and more waste produced
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How will the product itself be affected by increasing labour productivity?
More waste of raw materials is produced which could reduce the total value added and will have negative impacts on the environment
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Other cards in this set

Card 2

Front

What is the process of JIT?

Back

Raw materials come out one door and go straight out the other after manufacturing

Card 3

Front

If JIT is more flexible then...

Back

Preview of the front of card 3

Card 4

Front

What are the disadvantages?

Back

Preview of the front of card 4

Card 5

Front

How are suppliers affected by JIT?

Back

Preview of the front of card 5
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