2.3 making operational decisions Flashcards
how is technology used within production
can be used in design or
in the manufacturing process
what is the impact of technology on production
-improved quality
-reduction in waste
-improved productivity
-reduced costs
-flexibility
what are the drawbacks of using technology in production
-The initial costs are very expensive
-Breakdowns can be problematic, resulting in a loss of production time.
why does a business use a bar gate stock graph
If a business chooses to hold stock of different products, it can use a bar gate stock graph to show and track stock levels of each product over a period of time.
what is on a bar stock graph
stock level(zig zag)
maximum stock(top line)
re-order level(middle line)
minimum stock(bottom line)
what is just in time(JIT) stock control
the minimum amount of stock of raw materials and finished goods are held by the business,preferably zero
what is just in case(JIC) stock control
the business holds buffer stock of raw materials or goods just in case there is a problem with deliveries or an unexpected surge in demand
what are the benefits of JIT stock control
Improve Cash Flow
Improve Efficiencies
Reduce Costs(less storage)
what are the benefits of JIC stock control
-increases the level of customer satisfaction.
-Reduce the chance of running out of stock.
-Benefit from bulk-buy discounts.
what are drawbacks on Jit stock control
-It can be hard for businesses to react to unexpected changes in demand
what are the drawbacks on JIC stock control
-risk of goods expiring
-more expensive then JIT
what is job production
ob production is when individual products are made one at a time to meet specific customer preferences
what is batch production
Batch production involves making a set quantity of identical products. This quantity is known as a ‘batch’.
what is flow production
Flow production involves continuously making identical products. This allows the production process to be heavily
automated
what are the advantages of job production
-High profit margins for bespoke products
-Employees may gain enjoyment from using their specialist skills
-Customers get exactly what they want
what are the disadvantages of job production
-Highly skilled staff are required, which increases costs
-Highly skilled staff may not be available, which can make training staff very expensive
what are the advantages of batch production
-Able to make a variety of sizes or flavours
-Can be partially automated
-Can produce more products than job production
what are the disadvantages of batch production
-Not as flexible regarding customers’ tastes as job production
-As batch production is not fully automated, costs may be higher than in flow production
what are the advantages of flow production
-Able to make far larger quantities
-Consistency in production means products are identical, which means customers know exactly what they are buying
-Highly automated process
what are the disadvantages of flow production
-In competitive markets for similar mass-produced goods, profit margins can be very low
-Customers like products that are tailored to their specific preferences
-Expensive to buy all the machinery needed for automation
how can a business improve productivity
-Providing training to staff to improve their skills so they can work more efficiently.
-Investing in up-to-date machinery
what is a supplier
A business or individual that provides goods or services to a business
why are suppliers important
- just in time stock control, effective relationships with key suppliers are essential so that items arrive on time
-Suppliers determine many of the costs of a business
Which factors are important to ensure a positive relationship is formed with suppliers?
-Cost
-Quality
-Delivery
-Availability
-Trust
what is procurement
Procurement is the whole process of managing the ordering and receipt of the goods or services in the business.
what are the key parts on procurement
-Deciding what is needed
-Selecting suppliers
-Managing logistics
what is logistics
A process which plans, implements and controls the distribution and storage of goods and services
what does the Supply chain management and supply decisions do
Ensures
-right quality
-right time
-right place
-right quantity
-right price
Benefits of effective
supply chain management and supply decisions
-Improved reputation
-Increased efficiency
-Lower unit costs
-Customer satisfaction
what are the issues to consider while making supply decisions
-Quality can suffer if costs are driven down too low
-Reliance on other members of the supply chain means a business does not have full control
definition on quality
A product is of good quality if it meets the needs & expectations of the customer
what is quality control
. All or a sample of products are checked at the end of the production process/after a service has been completed.
what are the benefits of quality control
-Customers, in theory, will not receive a substandard product, but depends on whether 100% or a sample of products are checked
-Specialist trained inspectors are used leaving operatives free to complete other tasks
what are the negatives of quality control
-Wasteful approach; products that do not meet the quality control requirements are often scrapped
-Workers less likely to take responsibility for errors
-High cost of inspectors
what is quality assurance
-every member of staff will be responsible for contributing towards quality
what are the benefits of quality assurance
-Costs reduced,
-Staff motivation should increase
-Consistent levels of quality can result in a competitive advantage
what are the negatives of quality assurance
-Can be expensive to implement
-can be time consuming and staff may resist any change
-Training costs will be high
what is the aims of quality assurance
-Focused on improving the production process
-Aims to have ‘zero defects’ (prevent defects) and get it right first time
-Quality is the responsibility of everyone
-Focused on the process
what are the aims of quality control
-Focused on identifying defective products
-Finds and eliminates problems
-Makes quality the responsibility of one person
-Focused on the product
