THEME 2: Resource Management

Question	Answer
RESOURCE MANAGEMENT	Aspects of the business which are directly linked to the fulfilment of customer orders
JOB PRODUCTION	The production of one off items to meet the specific needs of each individual customer
BATCH PRODUCTION	Identical items are produced in groups, each item passing through the production process at the same time
FLOW PRODUCTION	A capital intensive production technique in which items flow along a production line in a continuous process
CELL PRODUCTION	Workers are organised into teams where each group is responsible for the production of a product from start to finish
PRODUCTIVITY	Measures the output in a production process per unit of input
OUTPUT PER UNIT OF INPUT	A measure of productive efficiency that looks at the use of factor inputs ie. land, labour, capital in relation to the quantity of finished goods
COMPETITIVENESS	The degree to which a firm is successful at selling its products in the face of competition in the market
PRODUCTIVE EFFICIENCY	The effective use of resources to minimise inputs and maximise outputs in operations management
MINIMUM AVERAGE COST	The lowest achievable cost per unit produced which will be achieved at the optimum level of output
LABOUR INTENSIVE PRODUCTION	When production uses a relatively high proportion of labour ie. workers in the production of a product or service
CAPITAL INTENSIVE PRODUCTION	A type production that uses relatively high proportion of capital, such as machinery, in the production of a good or service
CAPACITY UTILISATION	A measure of the percentage of potential output being achieved. Actual/Maximum x 100
UNDER-CAPACITY	A firms resources are not being used at or close to full capacity, ie.low
OVER-CAPACITY	A firm is operating above full capacity ie. resources made toiwork at an excessive level
STOCK CONTROL	The mechanism that a company uses to maintain its level of goods or stock held
STOCK CONTROL DIAGRAM	Graphical representations of stock factors. Stock levels are represented on the y axis and time on the X axis
BUFFER STOCK	Stock held by a business to cope with unforeseen circumstances eg. sudden increase in demand, break down in supplies
JIT	A lean production method technique used to minimise stock holdings at each stage of the production process
LEAN PRODUCTION	Working practices derived from Japan that focus on cutting waste whilst maintaining, or improving quality
Quality management	The processes by which a business meets the customers' expectations in relation to quality
Quality	The ability of a product or service to meet customers' expectations
Quality Control	The checking of a good or service before it is delivered to a customer ie. at the end of the production process
Quality Assurance	The checking of a product or service at each stage of its production eg. as it travels along a production line
Quality Circles	Informal groups of workers who volunteer to meet on a regular basis to discuss issues relating to the workplace
TQM	An attitude towards quality assurance in which each employee is a link in the chain and treats the next link as if they were an external customer
Continuous Improvement (Kaizen)	Quality management technique that concentrates on small, but frequent improvements in every aspect of the production process.

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THEME 2: Resource Management

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	Created by Libby Rose about 8 years ago