The amount of capital and labour intensity dependent on: the availability of finance, technology used, sustainable labour and production methods-for both products and service industry
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Capacity Utilisation
Capacity Utilisation is the abitly to use all resources to achieve maximum output.
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Types of Management
Management is types of ways a business maybe run
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Just In Time (JIT)
Just in time stock control is a stock management system where stock is delivered only when it is needed by the production system, and so not stock is kept by the business. For JIT to work a business must have a good relationship with suppliers
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Just In Time (JIT) for it to work
A well organised production system, and regaular demand for products.
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Advantages of (JIT)
1.Funds that were tied up in stock can be used elsewhere. 2.Areas previously used to store stock can be used for other more productive uses.3. capacity utilisation can be incresed
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Disadvantages of (JIT)
JIT completely relies on the reliabiltiy of suppliers. It doesnt give a business a back plan if something goes wrong or no buffer stcock which means that would cause customers to become disatisfied.
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Stock Control
Managing stock is about managing materails that a business holds in the most efficient and effective way. Stock may include materials waiting to be used,work in progress, and some finished stock waiting to be delivered to customers.
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Maximum Stock level
Maximum stock level is the amount of materials a business is able to hold.
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The Re-order level
The re-order level is the point at which new stock will be ordered by the business.The difference between this level at which stock increases is the time it takes to arrive.
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Buffer Stock
The Buffer stock is the lowest amount of stock a business will hold. It is a saftey net in case there is a surge in demand.
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Kazien
Kaizen , or ‘Continuous Improvement’ is a policy of constantly introducing small incremental changes in a business in order to improve quality and/or efficiency. This approach assumes that employees are the best people to identify room for improvemen
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Kazien 2
Kaizen can operate at the level of an individual, or through Kaizen Groups or Quality Circles which are groups specifically brought together to identify potential improvements. This approach would also be compatible with Team working or Cell Producti
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Features of Kazien
Improvements are based on many, small changes rather than the radical changes that might arise from Research and Development
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Features of Kazien 2
Small improvements are less likely to require major capital investment than major process changes
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Features of Kaizen 3
All employees should continually be seeking ways to improve their own performance
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Consumer protection legislation
, to make sure goods and services are fit for purpose, do not ‘harm’ the consumer, that information on packaging does not mislead consumers and the awareness of associated costs with the implementation of legislation
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Managing working Capital
managerial accounting strategy focusing on maintaining efficient levels of both components of working capital, current assets and current liabilities, in respect to each other. Working capital management ensures a company has sufficient cash flow in
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Managing working Capital 2
order to meet its short-term debt obligations and operating expenses.
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Other cards in this set
Card 2
Front
Capacity Utilisation
Back
Capacity Utilisation is the abitly to use all resources to achieve maximum output.
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