Theme Two - Resource Management

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  • Created by: Rachelcfx
  • Created on: 12-04-19 19:56
Production
What happens when businesses combine inputs, raw materials and components and process them to produce output of goods and services (the production process).
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Productivity
Describes how effectively productive resources are being used. Most commonly measured as output per unit of input over a given time period.
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Efficiency
A measure of how well production is organised to make best use of resources. Technical or productive efficiency is achieved when the minimum possible inputs are used per unit of output.
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Job Production
Involves the production of a single product at a time. "One off" jobs tailored to suit the requirements of the customer. Generally requires a skilled and specialist workforce.
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Batch Production
Regular demand enables batches to be made together. Split into a number of stages each of which is carried out until the batch is complete. Can cater for changing consumer tastes. Can benefit from economies of scale. Employees need fewer skills.
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Flow Production
Stages of production carried out in a continuous sequence (mass production) used for standardised products on an assembly line. Highly automated and jobs tend to be repetitive.
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Cell Production
Has workers divided into teams which tackle all stages of production. They organise themselves, organise training, and their own breaks. They take responsibility for the level of output. Lots of mini assembly lines.
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What are the 4 main factors influencing productivity?
The amount of capital, technology, human capital, organising resources more efficiently
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What are the 4 main factors influencing efficiency?
New technology, labour, outsourcing, service industries
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Process innovation
Using new technologies to improve production methods, so that costs are reduced
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Capital intensive industries
Rely heavily on automation and machinery with a relatively small labour input
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Labour intensive industries
Service industries, relying on human interaction.
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Outsourcing
A business buys some inputs from other businesses, rather than using its own employees (offshoring)
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Capacity utilisation
Measures what proportion or percentage of the maximum possible output is actually produced. Businesses would ideally like to operate with 90% capacity utilisation as it makes good use of most of the capacity but allows for increases in orders/demand
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Under-utilisation of capacity
Using less than the full productive potential of a business. Increased average fixed costs and average total costs are likely to result from this.
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Other cards in this set

Card 2

Front

Productivity

Back

Describes how effectively productive resources are being used. Most commonly measured as output per unit of input over a given time period.

Card 3

Front

Efficiency

Back

Preview of the front of card 3

Card 4

Front

Job Production

Back

Preview of the front of card 4

Card 5

Front

Batch Production

Back

Preview of the front of card 5
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