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2.4 Resource Management - Coggle Diagram
2.4 Resource Management
2.4.1 Production, productivity and efficiency
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Methods of production
Job production
This production methods involves businesses focusing on making one product at a time, and then on completion the next job is started. This allows for products to be tailor-made and custom to the customer
It allows for the needs and wants for the customer to be met, greater job satisfaction for employees who have a more hands-on approach
The cost of producing a product via job production usually means it's expensive to make, labour intensive
Batch production
This involves the manufacturer of a number of products or work-in-progress at the same time, before moving on together for the next stage of production
Making products in batches reduces unit costs, specific customer needs can still be met and specialist machinery or skills can be used to improve efficiency
Problems can occur as time can be lost when switching between batches, staff can become demotivated due to repetitive work
Flow production
This is when units move from one operation and process to the next process in the sequence. The product must be simple to make and used in a mass market due to high demand
Number of products can be made at a relatively low cost due to the number of machines used to make the products
Time consuming and expensive to make any changes to the production process due to the volume of machines used, products are all identical and cannot be changes to the customers preferences
Cell production
This is where the production line is reorganised into small teams (cells), with each cell having responsibility for a part of the final product. Each cell is a suppler for the next cell
Working in groups should improve communication, and avoiding misunderstood messages
Staff can feel constantly pushed for more and more output by being told to look for more efficient ways, which may lead to demotivation
Productivity
Production is the total number of output produced in a time period and productivity measures the efficiency of that production
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2.4.3 Stock control
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Waste minimisation
The ways of minimising waste include the way stock is stored in, the planning involved for when the stock arrives and the sales tactics for when the stock is sold
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