1
Q
what is job production?
A
- a method of production that involves employing all factors to complete one unit of output at a time
2
Q
what are advantages of job production?
A
- customer requirements and changes can be handled
- associated with higher quality
- employees can be better motivated
- a flexible job production method`
3
Q
what are disadvantages of job production?
A
- individual cost of one unit may be high
- higher labour costs
- usually reliant on high skill
4
Q
what is batch production?
A
- method of production that involves completing one operation at a time on all units before performing the next
5
Q
what does batch production involve?
A
- similar items are produced together
- each batch goes through one stage of production before going on to the other
6
Q
what are the aims of batch production?
A
- concentrate aims
- achieve better use of equipment
7
Q
what are advantages of batch production?
A
- cost saving
- still allows customers some choice
- products produced by specialist workers
8
Q
what are disadvantages of batch production?
A
- takes time to switch production from one batch to another
- requires business to maintain higher stock of raw materials
9
Q
what is flow production?
A
- large scale production of standard product, where each operation on a unit is performed continuously one after the other, usually on a production line
10
Q
what are advantages of flow production?
A
- cost per unit is decreased
- suitable for manufacture of large quantities
- less need for training and skills
11
Q
what are disadvantages of flow production?
A
- very long set up time
- high raw material costs
- production is shut down if flow is stopped
12
Q
what is cell production?
A
- producing a family of products in a small self contained unit within a factory
13
Q
what is production?
A
- the transformation of resources into goods and services
14
Q
what is labour productivity?
A
- the amount of output each unit of labour produces
15
Q
what is productivity?
A
- the output per unit of input per time period
16
Q
what is the formula for labour productivity?
A
average number of employees
17
Q
what factors effect productivity?
A
- training
- motivation
- working practices
- capital productivity
- labour flexibility
18
Q
what is efficiency?
A
- producing a level of output where average cost is minimised
19
Q
what is downsizing?
A
- reducing capacity i.e. laying of workers and closing unprofitable divisions
20
Q
what are the advantages of downsizing?
A
- cost saving and increased profit
- a leaner, more competitive operation
- removal of unprofitable parts of business
21
Q
what is internal economies of scale?
A
- arise form the increased output of the business itself
22
Q
what is external economies of scale?
A
- occur within an industry e.g. all competitors benefit
23
Q
what is buying economies?
A
- buying in greater quantities usually results in a lower price (bulk buying)
24
Q
what is technical economies of scale?
A
- use of specialist equipment or process to boost productivity
25
what is the formula for average cost per unit?
total production cost in period
----------------------------------------------
total output in period
26
how does a firm benefit from external economies of scale?
- having specialised suppliers close by
- access to research and development facilities
- pod of skilled labour to choose from
27
what is lean production?
- a approach to operating that focuses on the reduction of resource use
28
what does lean production help do?
- raise productivity
- reduces cost
- reduces number of defective items
- improve reliability and speeds up product design
29
what is kaizen?
- continuous improvement
30
what is labour intensive?
- production relies on using labour resources
31
what is capital intensive?
- production relies on using capital resources
| - e.g. machinery
32
what is capacity utilisation?
- the proportion % of maximum possible output that is actually produced over a specific period of time
33
what is the formula for capacity utilisation?
current output
------------------ X 100
maximum possible output
34
why does capacity utilisation matter?
- useful measure of productive efficiency
- measure whether there are unused resources
- high utilisation can reduce unit costs, making a business more competitive
35
what are the key costs in capacity?
- equipment
- facilities
- labour
36
why do most businesses operate below capacity?
- lower than expected market demand
- loss of market share
- seasonal variations in demand
- recent increase in capacity
37
what are the danger of operating below capacity?
- higher unit costs
- less likely to reach breakeven output
- capital tied up in under utilized
38
how can a business operate at over 100% utilisation?
- increase workforce hours
| - extra shifts, encourage overtime
39
what are problems working at high capacity?
- negative effect on quality
- as production is rushed, less time for quality control
- employees suffer, added stress and workload
40
what are ways of improving utilisation?
- reduce capacity
- increase sales
- increase usage
41
what is rationalising?
- involves reducing excess capacity by getting rid of resources that the business can do without
42
what is quality?
- about meeting the needs and expectations of customers, through a product or service
43
why is quality important?
- gain customer satisfaction
- enable them to charge premium price
- reduce costs of less returns
44
what are the 2 types of quality management?
- quality control
| - quality assurance
45
what is quality control?
- process of inspecting goods at the end of production to ensure they meet the required quality standards
46
what is quality assurance?
- process that ensures quality is met at every stage of production to the requirements of customers
47
what is total quality management?
- an attitude to quality where the aims are zero defects and total customer satisfaction
48
what are advantages of low stock levels?
- lower stock holding costs
- lower risk of stock obsolescence
- less capital tied up in working capital
49
what are advantages of high stock levels?
- production fully supplied, no delays
| - potential for lower unit costs by bulk buying
50
what is just in time?
- stock required for production arrives just as it is needed
51
what are implications of just in time?
- no need for buffer stock
- stock holding costs are minimised
- lead times are very short
- requires highly reliable suppliers
52
what is the formula for working capital?
current assets - current liabilities
53
what is stock?
- raw materials
- work in progress
- finished goods
54
what are stock control charts?
- the overall objective of stock control is to maintain stock levels to that the total costs of holding stock is minimised
55
what is buffer stock?
- stock held as a precaution to cope with unforeseen demand
56
what is Kanban?
- a card or an object that acts as a signal to move or provide resources in a factory
57
what is lead time?
- the time between placing the order and the delivery of goods
58
what is re-order level?
- the level of current stock when new orders are placed
59
what is stock rotation?
- the flow of stock into and out of storage
business a level
flashcards
Decks in class (24)
# Cards
-
1.1 meeting cutomer needs33
-
1.2 market50
-
1.3 marketing mix and stategy67
-
1.4 managing people46
-
1.5 entrepreneurs and leaders49
-
formulas- theme 229
-
2.1 raising finance39
-
2.2 financial planning55
-
2.3 managing finance45
-
2.4 resource management59
-
2.5 external influences33
-
year 28
-
year 1 formulas21
-
year 2 formulas9
-
3.1 business objectives and strategy27
-
3.2 Business growth18
-
3.3 decision making techniques21
-
3.4 influences on business decisions21
-
3.5 assessing competitiveness20
-
3.6 managing change7
-
4.1 globalisationn19
-
4.217
-
4.316
-
4.416
