1.9: Operations Management Flashcards
1.9.1: Production, Productivity and Added Value 1.9.2: Methods of Production 1.9.3: Capacity Utilisation 1.9.4: Technology 1.9.5: Lean Production 1.9.6: Quality 1.9.7: Purchasing and Stock Control 1.9.8: Research and Development
What is Productivity
A measure of the level of output against a fixed input (Labour and Capital Productivity)
How do you measure productivity
Labour = Output / No of employees
Capital = Output / Capital Employed
State 3 advantages of productivity
Increased Economies of Scale, Lower Unit Costs and Performance bonuses to workers
State 4 methods of improving productivity
Training, Workplace Reorganisation, Technological Investment and Lean Production
What is Added Value
Increasing the worth of a resource by modifying it in some way.
Value of Output - Value of Input (cost)
State 3 ways you can add value to a good or service
Reducing the price paid for their inputs (raw materials), Raise selling price (depending on elasticity) & Improve Lead Times (Customers will pay premium for faster delivery)
Evaluate Added Value
Helps a firm differentiate which can protect their market share but more training maybe required and it doesn’t always guarantee profit
What is Job Production
A labour intensive one off delivery of a product specified to customer requirements such as Kate M’s wedding dress
State 3 benefits and 3 drawbacks of Job Production
Flexible, High Motivation and High Quality
No EOS, Low Volume and Time Consuming
What is Batch Production
Small Quantities of Identical Products for example: Bakeries
State 3 benefits and 3 drawbacks of Batch Production
Low Cost, Fast Times and Some EOS
Repetitive, Increased Storage Requirements and Machinery breaks
What is Flow (Mass) Production
A continuous process of large volumes of identical products eg: Car Assembly Plant
State 3 benefits and 3 drawbacks of Flow (Mass) Production
Fast, Consistent and Large EOS
Expensive, Repetitive and Job Losses (bad rep)
State 4 factors that influence a businesses choice of production method
Size of Firm, Technological Impact, Labour Impact (what skills are needed to produce the product) and The Level of Demand and Costs (Equipment & Production Costs)
What is Capacity Utilisation
The max no of units a frim can produce with existing resources so it is the extent to which the company’s maximum possible output is being reached
What is the formula for Capacity Utilisation
Actual Output x100 / Maximum Possible Output (As a %)
State 3 problems with Spare Capacity
Idle Staff/Low Motivation, Increased Costs and Under-Utilised Machinery
State 3 ways in which you can solve spare capacity
Subcontract (No P costs but less direct control over quality), Rationalisation (Shrinking) and Increase Asset Use (New Markets and Products and Sales Promos)
State 3 advantages and 3 disadvantages of Full Capacity
Lowers Unit Costs, Economies of Scale and No wastage
Pressure on Machinery, Demotivated Staff and Decline in Quality
State 3 ways in which a firm can manage capacity shortage
Overtime/Longer Hours for staff, Hiring and Building or Extending factories/plants
How does CAD help the manufacturing process
It eliminates human error, lower cost designs speed up development however training is required, software needs updating and it is expensive
How does CAM help the manufacturing and retailing process
Machines are controlled by computers, they can minimise waste and cut costs, they are fast and accurate but it is expensive, inflexible and time due to coding
What is CNC and CIM
CNC is Numerically controlled machines which is given instructions by the operator
CIM is Integrated manufacturing where a computer is used to guide the guide and control production
What is collaborative robotics and how do they help with Manufacturing and Logistics
They have the ability to avoid unwanted collisions (Amazon have Kiva), The bots can function outside of safety cages (work with humans) and provide a second dexterous pair of hands
