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2.4 Managing resources - Coggle Diagram
2.4 Managing resources
2.4.2 Capacity utilisation
Actual output/ max output x 100
the +, = + units = + revenue = fixed costs spread out = EOS
Improving = + hours
Outsource production
Reduce maintenance
2.4.3 Stock control
Buffer stock (min stock level)
Reorder level - new order
Lead time - time takes for stock to arrive after ordering
JIT - ordering when needed
reduces storage costs, waste,
H: relies of suppliers heavily
Lean production
An approach that tries to minimise waste
2.4.4 Quality management
Types
Quality control - checking at the end
Quality assurance - check during production
TQM - embedded in the business to ensure high standards
Kaizen (continuous improvement)
When a business exceeds the expectations of what a product is expected to do
2.4.1 Production, productivity, efficiency
Productivity - quantity produces per input
Methods of production
Job - one-off product
Batch - small group of identical products
Cell - Production goes through individual stages
Flow - continuous production (mass products)
Efficiency - effective use of resources
Capital v Labour intensive
