2.4 Resource Management

• Productivity - the measure of efficiency of a worker in converting inputs into useful outputs.
• Production - the total amount of output produced in a given time period.
• Factors influencing productivity of machinery:

  • age of machinery

  • training of staff

  • quality of inputs e.g. printer

  • hours used / down time

  • unforeseen events
• Labour productivity = Total output / number of employees
• Factors influencing labour productivity:

  • training

  • motivation

  • product type
• Ways of increasing labour productivity:

  •training

  •increase motivation

  •increase machinery

  •improve production

  •improved recruitment
• Difficulties of increasing labour productivity:

  •may cause lower quality

  •employees unhappy because same pay for more work

  •higher costs

  •safety
• Operational efficiency- maximising the output achieved from given inputs. (increasing output and lowering cost per unit)
• Quality assurance - quality is checked at every step of the prouction line.
• Advantages of Quality Assurance

  • spots faults earlier - saves wastage
  • aims to achieve 0 defects
  • increased motivation for employees as they are trusted
• Disadvantages of Quality Assurance

  • requires training
  • slows down production as staff have to do quality checks
  • puts workers under pressure
• Quality circles - small groups of employees that look ar how to improve quality.
• Advantages of quality circles:

  • improved quality
  • improved motivation due to trust
  • increased teamwork
• Disadvantages of quality circles:

  • management need to trust staff
  • meeting need to be organised - decreases productivity and opportunity cost
• Total quality management - a philosophy that creates a culture of quality throughout the organisation.
• Features of total quality management:

  • quality assurance system
  • quality chains (internal customer)
  • quality policies
  • teamwork
  • customer views
• Advantages of total quality management (TQM)

  • empowers and motivates employees as they are trusted
  • boosted reputation
  • reduced costs
  • improves customer satisfaction
• Disadvantages of total quality management (TQM)

  • takes time to introduce
  • costs of staff training
  • more stress on employees