1. Production Flashcards
What is PRODUCTION?
Production is how a company makes its INPUTS such a RAW MATERIAL, ENERGY, LABOUR and changes this into PRODUCT or SERVICES
What are the types of PRODUCTION?
- JOB production used for the EXACT REQUIREMENTS OF THE CUSTOMER (used for one-off items - often used by small companies)
eg garden design - flowers for a wedding - kitchen to a customers specifications
- FLOW production
Used for producing MANY ITEMS
USED when items move CONTINUOUSLY from one stage of production to another
eg producing 1,000,000 of Innocent drinks
ADV: huge number of items - cheaper per item
DISADB: large SET-UP costs of huge production line - might not be FLEXIBLE
What is SPECIALISATION?
Specilisation is when people FOCUS on a particular task - ADV they become VERY GOOD & FAST at the job but DISADV they may become bored
What is LEAN PRODUCTION?
Lean production aims to MINIMISE waste - saves ££ and RESOURCES
How to minimise waste
Reduce production of FAULTY ITEMS - have to remake - costing ££
Better STOCK CONTROL - items might get damaged - costing ££ - warehouse costs storing car panels
What is JIT production?
JIT is:
. Making an item when the CUSTOMER PLACES THE ORDER
. Keeping as little STOCK as possible - so don’t tie up ££ in STOCK & don’t have to pay WAREHOUSE costs
. STOCK can get damaged over time
. Items are ordered JUST IN TIME to be used
. DISAD: suppliers may not be be able to send the parts quickly - eg can’t produce LAPTOPS if can’t get the MICROCHIPS
What is KAIZEN?
Kaizen means CONTINUOUS IMPROVEMENT
. employees think how they can improve things from what they did yesterday
. Company needs to MOTIVATE staff so they will come up with new ways of doing things
Flow Productions helps a business to become
Flow Production = MORE EFFICIENT
DISADVANTAGES
- less flexible because every product is the same
- demotivating because can doing the same task can become boring over time - might lead to mistakes
LEAN production …
LEAN Production = REDUCES WASTE
Why might a company have a large amount of STOCK?
A company might hold stock because it got a PURCHASING ECONOMIES OF SCALE - got a DISCOUNT because thge company bought a LOT
eg it bought 125,000 scarves at 50p each instead of buying 50,000 at £1.25 each (the unit cost is much lower if you BUY IN BULK - buy at lot)
What is Just In Case production?
Just in Case Production is:
. Companies hold some stock in case they might be needed
. DISA have to store stock - it costs ££ and space
What approach does ZARA have:
ZARA order smaller amounts of STOCK and OFTEN using JIT because:
. Zara has to respond quickly to changes in fashion
. Zara doesn’t what to have a lot of outdated stuff that it can’t sell - wastes ££
What is Procurement/Purchasing?
Procurement/Prechasinsing is to do with:
. selecting the correct SUPPLIER of your goods/services to your company eg getting your tractor from JCB or John Deere . Getting the right PRICE . Getting favourable payment terms eg pay after 30 DAYS from the date of the invoice . What DISCOUNTS do they offer . Can they deliver QUICKLY . Can they deliver RELIABLY? . What is their QUALITY like? . .
What is the SUPPLY CHAIN?
Supply Chain is:
. All companies/people involved getting the PRODUCT to the CUSTOMER
. eg - school text books - involved in the supply chain
Teachers placing the order - supplier ordering the book from the printers - books being delivered to the main warehouse - the delivery people taking books to school - school staff checking off the books and delivering to the teachers
How can a company makes sure it has a good SUPPLY CHAIN/PROCUREMENT/PUCHASING?
A good SUPPLY CHAIN q company should:
. Get good QUALIITY and GOOD VALUE
.
PROCUREMENT is when a company BUYS something
ICT system in a modern restaurant like Yo! Sushi. What is one benefit of using up-to-date tech in its restaurants
Use up-to-date tech in modern restaurant - why?
- It’s TARGET MARKET is the young/tech aware customer who expect a quick efficient service
- TARGET MARKET attracted to wiki & USB & would go elsewhere if this wasn’t offered
- QUICK SERVICE to customer as it is LINKED to the KITCHEN and TILLS
- STOCK of FOOD and SALES of DISHES can be MONITORED using the same SYSTEM
- Customers can be SERVED QUICKLY - so the restaurant can SERVE many people a day - INCREASING PROFITS
Social Media - a good way to IMPROVE CUSTOMER SERVICE?
Social Media - is this a good way to IMPROVE CUSTOMER SERVICE
- Social Media is a CHEAP form of COMMUNICATION a LARGE NUMBER of PEOPLE - keeps costs low
- Target Market would expect to use socials - but need to keep up-to-date with new tech
- FEEDBACK from customers is INSTANT & things can be changed QUICKLY if there is a problem
- If any problems shown to be DEALT = build customer loyal - repeat visits & increased profits
- encourage FUTURE customers if issues are dealt with
- might encourage NEGATIVE feedback which might be damaging to the BRAND
Delegate to employees how the restaurant is run:
ADVANTAGES of DELEGATION
- swap shifts - get a good WORK/LIFE BALANCE - motivate to work hard & efficiently
- may come up with NEW WAYS of WORKING - save company £ & make it more efficient
- LESS SUPERVISORS are needed - more efficient & safe money
- The best person may not be doing to right job
-
LEAN production using JIT
LEAN production - reducing WASTE
- only order food that is NEEDED - save £ and make company more efficient
- not have an in reverse if problem
JOB PRODUCTION
- Meet the customers INDIVIDUAL NEEDS
- Might take LONGER TO PRODUCE as starting from scratch
