2.3.1 Business Operations Flashcards
What is flow production?
Continuous production of identical products which gives scope for high levels of automation.
One advantage of flow production?
Increased productivity
One disadvantage of flow production?
Not able to customise products
What is batch production?
Producing a limited number of identical products
Advantage of batch production?
Able to provide some level of customisation
Disadvantage of batch production?
Machinery needs to be cleaned between batches which reduces productivity
What is job production?
Production of a one-off item for a single customer
Advantage of job production?
Able to charge a premium price because product is bespoke to customer’s needs
Disadvantage of job production?
Increased staff costs due to specialist skills and training
What does the term “business operations” mean?
The section of an organisation concerned with making and delivering what the customer wants
What does productivity mean?
A measure of efficiency, usually output per person in a given time period
Advantage of increased productivity?
Reduced unit costs which leads to increased contribution per unit which leads to increased gross profit
How to increase productivity
CAD
CAM
GPS
EPOS
What is CAD
CAD - Computer Aided Design:
Accurate dimension
Can see what product looks like before it is produced
Alter design before producing
Accurately Costing
What is CAM
CAM - Computer Aided Manufacturing
No Errors once programming is correct
Low human input / effort
Can work 24/7
What is GPS
GPS - Geographical Positing Systems
Real Time routing
Alerts if delivery staff did not arrive or were late
What is EPOS
EPOS - Electronic Point of Sale
Increase efficiency
Allow access detailed reports from statistics (stock, peak times)
Increased automation
Advantages of using technology in operations
Labour costs decreased
Increased automation
Machines do not get tired
Less errors
Quicker production
Helps communicate with customers
Reduced defects
Disadvantages of using technology in operations
High start up costs
Costs in repairing
Errors with technology could delay production
Vulnerable if power cuts
Decrease in workers motivation
Can becomer out of date
Still need workers trained to use technology
