Resource Managment

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Resource Management

Resource management :

resources may include financial resources, inventory, human skills, production resources, or information technology.

The process of using a company's report in the most efficient way possible.

These resources can include resources such as goods and equipment, financial resources, and labor resources such as employees

Resource management can include ideas such as making sure one has enough physical resources for one's business, but not an overabundance so that products won't get used, or making sure that people are assigned to tasks that will keep them busy and not have too much downtime

Productivity :

-This measures the efficiency with which the business inputs into outputs

-Production is about creating goods and services.

-Managers have to decide on the most efficient way of organising production for their particular product.

Production :

-The total number of units produced in a given period of time

-Number of products produced in a period of time

Enterprise resource planning (ERP) :

-Planning that stores the firm costs, working with methods and resources such as machinery,labour and stock of materials within a piece of software.

Methods of production include:

Job

Batch

Flow

Cell

Job production :

Method of product in which a product is supplied from an order from a customer

Example, restaurant will only cook meals upon receiving an order

Batch production:

When the manufacturer makes limited identical products

Example bakery shop

Flow production:

Is the continuous production of a product in large quantities

Cell production:

Method used when the manufacturing process is organised into independent teams or cells

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Job production

-This is the production of one item that meets the needs of each individual customer

-involves producing custom work, such as a one-off product for a specific customer

-Job production where items are made individually and each item is finished before the next one is started. Designer dresses are made using the job production method

-It is labour intensive and require very skilled workers

-Job production involves firms producing items that meet the specific requirements of the customer. Often these are one-off, unique items such as those made by an architect or wedding dressmaker. For an architect, each building or structure that he designs will be different and tailored to the needs of each individual client.With job production, a single worker or group of workers handles the complete task. Jobs can be on a small-scale involving little or no technology. However, jobs can also be complex requiring lots of technology

Examples of job production include:

-Specialist cakes

-Tailor made clothes

-Web designs

-Hairdresser

-Painting and Decorating

Advantage:

Cheap and easy to set up

Meet specific needs of customers

Unique

Very motivated workers

Simple production organisation

Product usually high quality

Producer meets individual customer needs

Greater job satisfaction – involved in all stages of production

Disadvantage:

Skilled labour/ employee is needed this is expensive

Wide range of tools would be required (expensive)

High selling cost

Long time needed between starting and finishing

Cost of producing one unit or job is higher

Requires investment in skills and training

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Batch production

-These are similiar (identical) item that are produced in groups

-Each item passes through the production process at the same time

-Batch production is a technique used in manufacturing, in which the object is created stage by stage over a series of workstations, and different batches of products are made.

-Groups of items are made together.

-Each batch is finished before starting the next block of goods-example, a baker first produces a batch of 50 white loaves. Only after they are completed will he or she start baking 50 loaves of brown bread

-is used to meet group orders.- set of machines could be set up to make 500 size 12 dresses and then adjusted to make 600 size 12 dresses. Two batches have been made.

-GOODS ARE MADE IN BATCHES, and CAN BE SWITCHED OVER TO MAKE SOMETHING DIFFERENT ON THE SAME PRODUCTION LINE

-Batch production occurs when many similar items are produced together. Each batch goes through one stage of the production process before moving onto next stage.

Examples of batch production include:

Bread

Jeans

Furniture

Clothing production

Advantage

Allows cheaper and quicker production of individual items

Production can be changed to meet customers needs

Less labour/employee needed as the item can be mechanised

Employees are specialized so is good at their job

Lower skilled workforce means lower wages being paid

Making in batches reduces unit costs

Can still address specific customer needs (e.g. size, weight, style)

Use of specialist machinery & skills can increase output and productivity

Disadvantage

Small batches carry higher average unit costs (EOS)

Workers may be less motivated as they have to do the same work (repetitive work)

Time needs to be manged between batched as material as this is wasted (wastage)

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Flow Production

-These are item that are made that flow around the factory in a continuous process until finished

-It is appropriate when firms are looking to produce a high volume of similar items.

-In flow production large amount of quantities and identical items are produced/made

-Semi skilled staffs are needed to operate machinery

-Flow production involves a continuous movement of items through the production process. This means that when one task is finished the next task must start immediately. Therefore, the time taken on each task must be the same.

-involves the use of production lines such as in a car manufacturer where doors, engines, bonnets and wheels are added to a chassis as it moves along the assembly line.

-It is appropriate when firms are looking to produce a high volume of similar items. Some of the big brand names that have consistently high demand are most suitable for this type of production.

Workers are each responsible for small steps along the process this involves:

-Specialization

-Division of labour {who does what )

Example of flow production include:

-Car manufacturing

Advantage

Average cost is lower because higher volume is being made

computerised production and automated production is used- this means that product are improved in quality,have more complex designs and can be made in a very short period of time

As production is continuous, stocks of parts & raw materials don't need to be held and can be ordered on a system (online)

Disadvantage

High set up cost (start up cost ) as you would have to buy the factory as well as the machines

Low motivation of staff due to repetitive tasks

Break down of machinery (unforeseen expenditure) and lost of production can be costly

with so much machinery it is very difficult to alter the production process.-This makes production inflexible and means that all products have to be very similar or standardised and cannot be tailored to individual tastes.

work can be pretty boring for employees involved. Keeping staff motivated is therefore an important issue for management.

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Cell Production

-A form of flow production whereby they are split into a series of cells

-Each cell takes responsibilities for the production of complete units of output

-The members of the cell works as a team achieve goals and ensure quality standards are met

-Cell production has the flow production line split into a number of self-contained units.

-Each team or ‘cell’ is responsible for a significant part of the finished article and, rather than each person only carrying out only one very specific task, team members are skilled at a number of roles, so it provides a means for job rotation.

-Cell production is a form of team working and helps ensure worker commitment, as each cell is responsible for a complete unit of work

Advantage

Increase quality of product

Team work improved

Motivation of employees increased- motivation as the workers wants to see the completed product

Workers become multi-skilled and more adaptable to the future needs of a business

Disadvantage

May be tension in the cell or between cells if work gets competitive

Huge investment in machinery for each cell production