2.4- resource management

What is productivity?

The measure of efficiency of a worker in converting inputs into useful outputs

What is production?

The total amount of output produced in a given time period

What are the factors influencing productivity of machinery?

• Age of machinery

• Training of operatives

• Quality of inputs

• Hours used vs downtime

• Efficiency of programming and quality of software

• Unforeseen events (powrcuts)

How do you calculate labour productivity?

Total output / number of employees

What are the fscots influencing labour productivity?

• Complexity of product

• Level of training

• Motivation of staff

• Investment in capital equipment

• Level of supervision

• Working hours and environment

What are methods of increasing labour productivity?

• Invest more into staff training

• Increasing staff motivation

• Implementing more machinery into the production process

• Switch methods of production

• Improved recruitment and selection

What is operational efficiency?

Maximising the output achieved from given outputs including machinery, materials and people

What are the factors influencing efficiency?

• Levels of training

• New technology

• Production capacity

• Method of production

How can efficiency be improved?

• Increase capacity utilisation

• Increasing labour productivity

• Implement lean production techniques

• Choosing optimal resource mix

What does it mean to be capital intensive?

Uses a relatively high proportion of capital such as machinery in the production of a good or service

What are the advantages and disadvantages of being capital intensive?

Adv :

• Increased productivity levels

• Improved quality/consistency

• Reduced labour costs

• Lower unit costs

Dis:

• High investment costs

• High fixed costs

• Less flexibility

• Redundancy may damage the employee/employer relationship

What does it mean to be labour intensive?

Uses a relatively high proportion of labour (workers) in the production of a good/service

What are the advantages and disadvantages of being labour intensive?

Adv:

• Cheaper

• Employees can easily adapt to changes

• Employees may help the firm to continually improve by generating new ideas

Dis:

• Higher labour costs

• Lower productivity

• Greater risk of human error

• Labour shortages

What is job production?

The production of a single unit at a time to meet the specific needs and requirements of a customer

What are the advantages and disadvantages of job production?

Adv:

• Customers requirements can be met more easily

• Firms can charge higher prices

• Increased job satisfaction

• Lower start up costs

Dis:

• Time consuming

• Increased costs

• Limited economies of scale

• Lower output volume

• No room for mistake

• Need to be highly skilled

What is batch production?

Where groups of identical items are made together

What are the advantages and disadvantages of batch production?

What is flow production?

Where identical standardised items are produced on an assembly line

What are the advantages and disadvantages of flow production?

What is cell production?

The production line is split into a series of self contained units/small trams where each cell is like a mini production line

What are the advantages and disadvantages of cell production?

What is the definition of capacity?

The amount achievable is all the resources are fully utilised

What is capacity utilisation?

A measure of the percentage of the potential output bring achieved

How do you calculate capacity utilisation

( Actual output /maximum output) x 100

What is under utilising capacity?

The firm has a low capacity utilisation level - resources aren’t being used efficiently

What are the benefits and drawbacks of under utilising capacity?

Benefits :

• Spare capacity available for demand surges

• Less pressure on stagg to meet challenging targets

Drawbacks :

• Increased costs

• Negative brand image

• Rise in unit costs

What is over utilising capacity?

The firm has a high capacity utilisation level. The firms resources are being made to work too hard for the business

What are the benefits and drawbacks of over utilising capacity?

Benefits :

• Less stock wasted

• Better sales revenue

• Lower unit costs

• Maximum efficiency

Drawbacks:

• Increased labour costs

• Increased mistakes

• May be unable to meet surges in demand

How can a firm utilise their capacity more efficiently?

What is stock?

A current asset held by a business to help meet the demand of customers

What 3 forms can stock be held in?

• Raw materials

• Work in progress

• Finished goods

What are the advantages and disadvantages of holding buffer stock ( the minimun level of stock for a business)

What is lean production?

Worming practices that focus on cutting waste whilst maintaining or improving quality

What are the 2 lean production techniques?

• Just in time production

• Kaizen(continuous improvement)

What is just in time production?

Stock is delivered just before it is needed for a production or sale

What are the advantages and disadvantages of just in time production?

What does quality mean and how can it be expressed?

The ability of a product or service to meet customers expectations

• aesthetics

• Core asp

• Performance

• Value for money

What quality control and what are the advantages and disadvantages?

Quality is checked at the end of the production process by quality inspectors

What is quality assurance and what are the advantages and disadvantages of it?

Quality is checked at every step of the production process

What are quality circles and what are the advantages and disadvantages?

Small group of employees that meet regularly to look at how quality can be improved

What is total quality management?

Creating a culture of quality throughout the entire organisation and quality bring the key priority for the whole firm - the manufacturing process is investigated at every stage of production

What ate the advantages and disadvantages of total quality management?

What is kaizen?

Focused around lean production and quality management where continuous production including every aspect of life is continously improved

What are the key feature of kaizen?

• It involved every employee within the firm

• Improvements are based on many small changes

• Wide range of different production techniques