2.4 – Resource Management
2.4.1 – Productonn Productivtt and Efcvenct
Resource management Resource management is concerned with those aspects of
the business which are directly linked to the fulflment of
customer orders
Job producton The producton of one of items to meet the specifc needs of
each individual customer
Batch producton Identcal items are produced in groups (batches,r each item
passing through the producton process at the same tme
Flow producton A capital-intensive producton techniiue in which items fow
along a producton line in a contnuous process
Cell producton Workers are organised into teams (or cells, where each
group is responsible for the producton of a product from
start to fnish
Productvity This measures the output in a producton process per unit of
input
Output per unit of input A measure of productve efficiency that looks at the use of
factor inputs i.e. landr labourr capital in relaton to the
iuantty of fnished goods
Compettveness The degree to which a frm is successful at selling its products
in the face of competton in the market
Productve efficiency The efectve use of resources to minimise inputs and
maximise outputs in operatons management
Minimum average cost The lowest achievable cost per unit produced which will be
achieved at the optmum level of output
Labour intensive When producton uses a relatvely high proporton of labour
producton i.e. workers in the producton of a product or service
Capital intensive A type of producton that uses a relatvely high proporton of
producton capitalr such as machineryr in the producton of a good or
service
Labour productvity Output (producton,)number of workers
Job Producton
One-of or small number of items produced
Normally made to customer specifcatons
Often undertaken by smallr specialist businesses
Customer reiuirements and Individual cost of one unit may be
changes can be handled high
Associated with higher iuality Usually reliant on high skills Often
Employees can be beter motvated labour-intensive which means high
– more job satsfacton labour costs
A fexible producton method Reiuires close consultaton with the
client
Batch Producton
Similar items are produced together
2.4.1 – Productonn Productivtt and Efcvenct
Resource management Resource management is concerned with those aspects of
the business which are directly linked to the fulflment of
customer orders
Job producton The producton of one of items to meet the specifc needs of
each individual customer
Batch producton Identcal items are produced in groups (batches,r each item
passing through the producton process at the same tme
Flow producton A capital-intensive producton techniiue in which items fow
along a producton line in a contnuous process
Cell producton Workers are organised into teams (or cells, where each
group is responsible for the producton of a product from
start to fnish
Productvity This measures the output in a producton process per unit of
input
Output per unit of input A measure of productve efficiency that looks at the use of
factor inputs i.e. landr labourr capital in relaton to the
iuantty of fnished goods
Compettveness The degree to which a frm is successful at selling its products
in the face of competton in the market
Productve efficiency The efectve use of resources to minimise inputs and
maximise outputs in operatons management
Minimum average cost The lowest achievable cost per unit produced which will be
achieved at the optmum level of output
Labour intensive When producton uses a relatvely high proporton of labour
producton i.e. workers in the producton of a product or service
Capital intensive A type of producton that uses a relatvely high proporton of
producton capitalr such as machineryr in the producton of a good or
service
Labour productvity Output (producton,)number of workers
Job Producton
One-of or small number of items produced
Normally made to customer specifcatons
Often undertaken by smallr specialist businesses
Customer reiuirements and Individual cost of one unit may be
changes can be handled high
Associated with higher iuality Usually reliant on high skills Often
Employees can be beter motvated labour-intensive which means high
– more job satsfacton labour costs
A fexible producton method Reiuires close consultaton with the
client
Batch Producton
Similar items are produced together
