business edexcel a level > 2.4 > Flashcards

2.4 Flashcards

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1
Q

what is production

A

total number of units produced in relation to input units in a given period of time

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2
Q

what are the methods of production

A

job
batch
flow/ mass
cell

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3
Q

what is job production

A

production of one off items to meet the needs of each individual customer

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4
Q

what are the pros of job production

A

-highly skilled workers;
-greater job satisfaction
-high quality
-high price
-made specific to customer requirements
-easier to differentiate

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5
Q

what are the cons of job production

A

-time consuming
-higher unit cost
-labour intensive
-need skilled employees;
-higher wages

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6
Q

what is batch production

A

identical items are produces in groups, each item passes through each stage at the same time

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7
Q

what are the pros of batch production

A

-increased efficiency
-increased flexibility
-standardised quality
-can create limited range
-variety can be made
-lower unit cost than job

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8
Q

what are the cons of batch production

A

-production of excess
-time lost between batches
-high up front costs
-sold at lower price
-repetitive - demotivating

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9
Q

what is flow/mass production

A

-items flow along production process in continuous line
-large scale
-identical items

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10
Q

pros of flow/mass production?

A

-econ of scale
-low unit cost
-consistent quality
-continuous output - less held stock
-efficient machinery, division of labour, worker specialisation

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11
Q

cons of mass/flow production

A

-standard products only
-repetitive - low motivation
-mistakes can shut down whole process
-high initial costs; training, machinery

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12
Q

what is cell production

A

form of flow production where production line is split into self contained “cells”

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13
Q

pros of cell production

A

-each cell takes responsibility for a complete production
-teamwork - motivation
-ensure quality

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14
Q

cons of cell production

A

staff must be trained well

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15
Q

what factors influence productivity of machinery

A

-age of machinery
-training of operators
-quality of input
-hours used v downtime
-efficiency of programming
-unforeseen events

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16
Q

what are the three inputs for productivity

A

-time period
-labour
-capital/ machinery

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17
Q

how is labour productivity calculated

A

total output/
number of employees

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18
Q

what can labour productivity be influenced by

A

-training + skills
-motivation
-complexity of product

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19
Q

how can labour productivity be increased

A

-training
-motivation
-new technology
-better working practises
-improved recruitment + selection

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20
Q

what are the difficulties to increasing labour productivity

A

-increase waste
-damage long term reputation
-employees may feel exploited/ request higher pay
-increased workload; stress + demotivation

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21
Q

what is efficiency

A

maximising the output from achieved from given units including machinery, people, materials

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22
Q

how can efficiency be improved

A

-increasing capacity utilisation
-increasing labour productivity
-lean production techniques
-using technology
-choosing optimal resource mix of labour/ capital

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23
Q

what are the four factors of production/ resource inputs

A

-land
-labour
-capital
-enterprise

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24
Q

what is capital intensive production

A

-using high proportion of capital eg machinery in production
-usually in secondary sector of economy eg.

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25
pros of capital intensive?
-increased productivity -increased quality + speed -reduced labour costs -econ of scale
26
what is labour intensive production
-using a high proportion of labour in production -usually in tertiary sector of economy eg services
27
cons of capital intensive
-high investment outlay -lack human initiative -greater resistance to change by workforce (retraining)
28
pros of labour intensive
-cheaper, esp in low wage areas -workforce is adaptable, esp if multiskilled -gov funding often available to protect jobs -continuous improvement through workforce
29
cons of labour intensive
-industrial relations can be problem -lack of skilled workers in certain industries -HRM may be expensive eg training, selection retirement
30
what is capacity
maximum amount of output achievable if all resources are fully utilised
31
how can capacity be increased
-bigger premises -more machinery -extra shifts
32
how can capacity be reduced
-laying off workers -smaller premises -less machinery
33
what is capacity utilisation
-measure of the % of potential output being achieved
34
how is capacity utilisation calculated
current output / max possible output x100
35
what is under utilisation of capacity
resources arent being made to work effectively; high unit costs
36
what is over utilisation of capacity
-the firm is “sweating” its assets; theyre being made to work hard for the business; low unit costs but may affect quality
37
what does a business match capacity utilisation to
demand
38
what is the importance of capacity
-ability to match supply to demand -image/ public perception -workforce motivation -ability to achieve objectives -inverse relationship between capacity utilisation + costs
39
how can under capacity utilisation be fixed
-increase demand -downsize -lease off spare capacity
40
how can over capacity utilisation be fixed
-reduce demand -outsource -invest in resources to increase capacity
41
what is stock
a **current asset** held by businesses to help meet the demand of customers
42
what are the three forms stock can be held in
raw materials work in progress finished products
43
what is lead time
time between placing an order and receiving delivery
44
what is reorder level
-the level of stock at which an order is placed -may be manual or computerised
45
what is buffer stock?
minimum stock level held by a business in case of unforeseen circumstances
46
pros of buffer stock/ JUST IN CASE
-can meet customer demand -quickly respond to increased demand -Continue with production despite stock delivery problems
47
cons of buffer stock/ JUST IN CASE
-Money tied up in stock -Risk of waste eg out of date, damaged, obsolete -Cost of stockholding eg storage, insurance
48
what are the consequences of poor stock control?
-Waste of resources – unable to meet customer needs – damage reputation – loss of competitiveness – stock may lose value
49
what is just in time (JIT) stock control
Stock and resources are ordered and delivered just in time before existing stock runs out
50
pros of just in time stock control
– Reduced cost of storage – less waste – less work in capital required - Avoid unsold stock
51
cons of just in time
– delivery delays – Can’t meet unexpected demand – Very reliant on suppliers – High initial setup cost – Complex systems required
52
what is the advantage of good stock control
Reduced waste leads to competitive advantage via saving costs and ability to meet customer needs
53
what is lean production?
An approach to management focused on cutting waste and costs by efficiency, while ensuring quality
54
what are the methods of lean production?
– continuous improvement/kaizen – Just in time – Total quality management – Quality assurance
55
what is just in case stock control
holding buffer stock in case of unforeseen circumstances
56
what is quality
the ability of a product/service to meet customer expectations
57
what are the methods of improving quality?
– Training and motivating – Understanding customer expectations – Using technology - Working closely with suppliers – Quality systems
58
how is the quality of a product measured?
– Aesthetics – Features – performance – Brand
59
how is the quality of a service measured?
– friendliness of staff – Speed of service – Staff knowledge –cleanliness of facilities – Appearance of environment
60
what are the four quality systems?
-Quality control – Quality circles – Quality ass – Total quality management TQM
61
what is continuous improvement/kaizen
-system of small but frequent improvements in the production process -All employees involved
62
how can a business achieve a competitive advantage from quality management?
– Less waste; lower unit cost – USP – Pricing decisions – Motivated workforce – Positive reputation; word of mouth
63
what are the benefits of continuous improvement/kaizen
– Higher capacity utilisation – More energy efficient – Less waste – Reduced risk – Better customer – More accurate information
64
pros of continuous improvement/kaizen
– Competitive advantage – Achieve operational objectives – Reduced unit cost – Enhanced reputation – motivated workforce
65
cons of continuous improvement/kaizen
– Costly eg training, testing and implementing – reluctance of employees to change – Reliant on relationship with suppliers – Must be monitored and reviewed to maintain
66
what is quality assurance?
Regularly checking production process to make sure it meets specific standards, relies on an inspection process
67
pros of quality assurance
– Issues identified early – Focus on cause of defects so future issues can be prevented
68
cons of quality assurance
– Staff training and skilled workforce required; labour costs – Reworking products may lengthen production process
69
what is quality control?
Inspecting the quality of a product at the end of the production process via testing and assessing
70
pros of quality control
-qualities specialists check standards -Inexpensive and simple – Quality can be maintained – Prevents faulty product reaching customer – Common issues can be identified
71
cons of quality control
– Rejection of finished goods = waste – Little focus on cause of defect – Specialist personnel required – Responsibility taken from operatives
72
what is total quality management?
Organisation of the business with quality at the core, every worker is responsible for quality Focus on get it right first time
73
what are quality circles?
-Group of workers meet regularly to solve quality problems identified in the production process -Voluntary, not paid -Increase motivation and employee participation
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