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2.4 - resource management - Coggle Diagram
2.4 - resource management
Methods of production
flow production
all done by machines creating goods e.g. ketchup
suitable for large scale, mass production
Division of labour
Capital intensive - high initial cost
JIT(just in time)
aka lean production
focus on producing exactly the amount you need
Examples - wedding cake business
Batch production
identical items produced in batches
allows for cheaper and quicker production of individual items
More uniform products
More specialist so requires more employees
Even labour and capital split
Examples: Bread, jeans, sweets
Productivity and efficiency
Labour productivity is amount a worker produces
example: a bakery measured by number of cakes made
How to improve
TQM
Lean production
JIT
cell production
motivation
Labour productivity = output(per time period)/number of employees(per time period) x 100
Efficiency
The ability to achieve an end goal with little to no waste, effort or energy
Capital intensive requires more equipment and machinery to produce goods - greater initial cost
Labour intensive refers to production that requires a higher labour input - higher costs due to wages
Capacity utilisation
actual level of output/ maximum possible output x 100
what could cause a need for increased capacity
temporary staff
full time staff
part time staff
overtime
rationalisation
Stock control
purchasing - the process of acquiring stock from an external supplier fpr a fee
Merchandising - process of having right range of products available for sale for you customer
cost of stock: storage costs, wastage/damage, opportunity cost
Benefits of a computerised stock management system
more efficient
Don't have to pay workers
capital intensive
could go wrong
higher upfront costs
Factors that impact lead times
lack of raw materials
breakdown of transportation
labour shortages
natural disasters
human error
Kaizen
Continuous improvement in everything
TQM - continual process of detecting and reducing or eliminating errors in manufacturing
Quality control - A system of maintaining standards in manufactured products by testing a sample of the output against the specificaition
Quality assurance - The maintenance of a desired level of quality in a service or product, especially by means of attention to every stage of the process of production
Quality circles - a group of employees who meet regularly to consider ways of resolving problems and improving production in their business