2.4 Resource Management

job production

one unique product made at a time for customer requirements

batch production

group of identical products made together in batches

flow production

continious production of standardised products on a product line

cell production

workers split into teams each asigned to a specific task or function for a product

lean production

producing standardized goods in a continous process aims to reduce waste and maximize efficency

underutilisation problems

• fixed costs are spread over fewer units so AC rises

• machines may waste resources

what is buffer stock

Extra stock kept in reserve in case of unexpected demand or delivery delays.

JIT stock management

Stock arrives only when needer for production

Adv of JIT

• Lower storage/warehouse costs.

• Less money tied up in stock, improving cash flow

Quality control

checking products after production to find defects.

Quality assurance

preventing defects during production through systems and standards.

Quality circles

Small groups of employees who meet regularly to discuss ways to improve quality and efficiency.

Total quality management

All employees focus on continuous quality improvement

Kaizen

Continuous improvement process