Save
Business: Theme 2
Section 9 - Resource Management
Save
Share
Learn
Content
Leaderboard
Share
Learn
Created by
Lorida
Visit profile
Cards (39)
Production
Methods
Four
methods you need to know about
View source
Unit
costs
Higher prices
for products, economies of scale as they can buy
smaller
batches
View source
Batch
production
Produces
identical products
in batches, requires less
equipment
than flow production
View source
Flow
production
Continuous production
, products move along a production line,
equipment
is highly specialised
View source
Businesses may switch between production methods depending on
demand
View source
Productivity
The amount of output produced per
unit
of
input
(e.g. per worker, per machine)
View source
Machinery
Can
increase
productivity
View source
Human
workforce
Can also be used to
increase productivity
View source
Efficiency
is about producing the
minimum
average cost
View source
Ways
a business can increase efficiency
Labour-intensive
production
Capital-intensive
production
Balancing
people and machines
View source
Labour
-intensive firm
Very people-heavy, labour is relatively
cheap
View source
Advantages
of labour production
Flexible
, can respond to changes, lower
capital
costs
View source
Disadvantages
of labour production
Less
consistent
quality, harder to control, more
difficult
to scale up
View source
Capital-intensive firm
Lots of
machinery
, machinery is
cheaper
than labour
View source
Advantages
of capital production
Higher
quality
, more consistent, easier to
scale
up
View source
Disadvantages
of capital production
High capital costs,
machinery
can break down, risk of being made
obsolete
View source
Businesses
need the right
balance
of people and machines
View source
Capacity
Maximum
output with the
resources
currently available
View source
Capacity
utilisation
The extent to which a business is using its
capacity
View source
Increasing capacity
utilisation
too much
Can lead to
over-utilisation
View source
Problems
with over-utilisation
Equipment
breaks down
, quality suffers, staff become
overworked
View source
Ways
to increase capacity
Increase working hours, hire more staff, invest in new
equipment
View source
Under-utilisation is
inefficient
and
increases
unit costs
View source
Stock
The sum of
raw
materials, work-in-progress, and
finished
goods
View source
Buffer stock
Extra
stock
held to cope with
fluctuations
in demand or supply
View source
Advantages
of buffer stock
Helps
retain
customers, economies of
scale
in purchasing
View source
Disadvantages
of buffer stock
Storage costs, capital tied up, risk of
obsolescence
View source
Just
-in-time (JIT) stock management
Holding very little
stock
, relying on
frequent deliveries
View source
Advantages
of JIT
Lower
storage
costs, less risk of obsolescence, more
responsive
to changes in demand
View source
Disadvantages
of JIT
Risk of
stock-outs
, less able to take advantage of
bulk buying
discounts
View source
Quality control
Checking products after they are made or
received
from
suppliers
View source
Quality
assurance
Ensuring
quality
is built into the
production process
View source
Advantages
of quality assurance
More
motivating
for workers, helps
prevent
defects
View source
Total
quality management (TQM)
Approach that
assures commitment to quality across the whole organisation
View source
Advantages
of
TQM
Lower
costs
from fewer defects, higher customer
satisfaction
, improved productivity
View source
Quality
circles
Groups of
employees
who meet to discuss
quality improvements
View source
Kaizen
Continuous
small
improvements made by all
employees
View source
Advantages
of kaizen
Engages all
employees
, leads to
gradual
quality improvements
View source
Disadvantages
of kaizen
Changes may be too
small
to have a big
impact
View source
See similar decks
2.3 Resource Management
Edexcel GCSE Geography > Component 2: The Human Environment
137 cards
AQA A-Level Business
2051 cards
2.4 Resource Management
Edexcel A-Level Business > Theme 2: Managing Business Activities
206 cards
2.3.3 Water Resource Management
Edexcel GCSE Geography > Component 2: The Human Environment > 2.3 Resource Management
48 cards
2.4.4 Quality Management
Edexcel A-Level Business > Theme 2: Managing Business Activities > 2.4 Resource Management
53 cards
6.24 Contemporary Issues in Human Resource Management
OCR A-Level Business > 6. Human Resource Management
366 cards
6.22.3 Global Talent Management
OCR A-Level Business > 6. Human Resource Management > 6.22 International Human Resource Management
38 cards
2.4.3 Stock Control
Edexcel A-Level Business > Theme 2: Managing Business Activities > 2.4 Resource Management
95 cards
6.1 The Role of Human Resource Management (HRM)
OCR A-Level Business > 6. Human Resource Management
98 cards
6.22 International Human Resource Management
OCR A-Level Business > 6. Human Resource Management
204 cards
2.4.2 Capacity Utilisation
Edexcel A-Level Business > Theme 2: Managing Business Activities > 2.4 Resource Management
35 cards
Theme 2: Building a Business
Edexcel GCSE Business
1667 cards
6.15 Leadership and Management
OCR A-Level Business > 6. Human Resource Management
217 cards
6.22.2 Managing Expatriates
OCR A-Level Business > 6. Human Resource Management > 6.22 International Human Resource Management
66 cards
6.25 Evaluating Human Resource Management Effectiveness
OCR A-Level Business > 6. Human Resource Management
243 cards
6.23 Ethics in Human Resource Management
OCR A-Level Business > 6. Human Resource Management
147 cards
6.21 Human Resource Information Systems (HRIS)
OCR A-Level Business > 6. Human Resource Management
170 cards
2.3.2 Energy Resource Management
Edexcel GCSE Geography > Component 2: The Human Environment > 2.3 Resource Management
45 cards
6. Human Resource Management
OCR A-Level Business
4209 cards
2.4.1 Production, Productivity, and Efficiency
Edexcel A-Level Business > Theme 2: Managing Business Activities > 2.4 Resource Management
23 cards
6.25.3 Continuous Improvement in HRM
OCR A-Level Business > 6. Human Resource Management > 6.25 Evaluating Human Resource Management Effectiveness
46 cards