2.3 Making Operational Decisions Flashcards
Business operations
Refers to the part of the business that provides the customers with goods or service
3 types of production
Job
Batch
Flow
Job production is
When individual products are made one at a time for specific customers
Batch production is
Making a set quantity of identical products called a batch
Flow production is
Continuously making identical products
Job production advantages
High profit margins
Employee satisfaction
Customer satisfaction
Job production disadvantages
High cost employees and training
Lack of highly skilled employees
Batch production advantages
Variety of products
partially automated
More products than job production
Batch production disadvantages
Not as flexible as job production
Higher costs than flow production
Flow production advantages
Large quantities
Consistency in products
Highly automated
Flow production disadvantages
Low profit margins
Low customer satisfaction
Expensive machinery
Ways a business can improve productivity
Investing in new machinery
Providign incentives for workers
Staff training
Encouraging staff ideas
Impact of technology on production
Costs need to be balanced
Higher productivity
Quality changes
Decrease in human flexibility
Procurement is
getting the right supplies from the right supplier, at the right time
Barg gate stock graphs features
X-axis - Weeks
Y-axis - Stock Level
Buffer stock at the bottom(emergency stock)
Reorder level
Maximum stock level
Lead time(Time it take to get stock from when ti was ordered)
Lead time is
the time it takes to get stock from when it was ordered
Just-in-time stock control
JIT. When the business doesnt store any raw materials, but instead recieves deliveries for when they are needed.
JIT advantages
Removes buffer stock space
Fresher products
No capital tied up in stock
reduce waste
Reduces production costs
Disdvantages of JIT
Difficult to respond to uenxpected changes
No bulk-buy discounts
Poor service if not doen correctly
5 factros to consider when building a relationship with a supplier
Cost
Quality
Delivery(speed and reliability)
Availibility and capacity
trust
Logistics and supply decisions has an impact on
Costs
Reputation
Customer satisfaction
Quality control
The process of inspecting products and services at the end of production
Quality control methods
Customer feedback
factory inspectors
100% inspection system(checked by top person)
Quality assurance is
The process of carrying out quality checks at specific stages durign production
