2.4 Resource Management

Define production

Transformation of resources into finished goods or services

Define job production

Producing one item at a time, as ordered by the customer

Define batch production

Groups of the same product are produced, before moving onto another group

Define flow production

Continuous production of standardised products

Define cell production

Workers organised into multi-skilled teams responsible for part of the production process

Define productivity

Output per input

Define labour productivity

Measure of output per worker

Define capital productivity

Measure of output per capital employed

Define competitiveness

Ability to maintain or grow sales and market share in the presence of rivals

Define efficiency

Ability to use production resources cost-effectively

Define labour-intensive production

MainlyDDD use of physical labour in production

Define capital-intensive production

Mainly uses machinery and technology in production

Define capacity utilisation

Measure of how well assets are being used to produce output

Define buffer stock

A quantity of goods/raw materials kept in case of stock shortages

Define Just In Time stock management

Raw materials are delivered just in time for production

Define lean production

Minimisation of resources used in production

Define quality

Characteristics and feature of a product that satisfy needs

Define quality control

Inspecting quality of output at the end of production

Define quality assurance

Inspecting quality of production throughout the production process

Define quality circles

Groups of workers who regularly meet to solve quality issues

Define total quality management

Organisations of business with quality at the core, holding each worker responsible

Define Kaizen (continuous improvement)

Taking continuous steps to improve productivity through elimination of waste