3.4 Operations. Flashcards
9 Operational objectives
Quality, costs, flexibility, efficiency, innovation, environment, speed of response, dependability and added value.
Internal factors
Nature of product, availability of resources, other dep
External factors
competitors performance, market conditions, demand for product, changing customer needs, new tech
Productivity
Measures how much each employee produces
Unit costs
Total costs divided by units output
Capacity
Maximum output with the resources currently avaliable
Capacity utilisation
How much capacity a business is using
Efficiency
Getting more output from a given amount of input
Lean production methods
JIT, Time Based Management and Kaizen
Capital intensive
Lots of machinery
Labour intensive
People-heavy
Robotic engerneering
Using robots can reduce staffing costss
Computer technology
CAD can make companies more efficient
Quality control
Checking goods as you make them to see if anything is wrong with them
Quality assurance
Measures into the production process to make sure nothing goes wrong in the first place and assumes you can prevent errors.
Total quality management
Whole workforce is committed to quality improvements. Every department focuses on quality to improve overall quality of products and services.
Kaizen
Employees should be adjusting their work slightly all the time.
Inventory control charts
LOOK AT THEM!!! Exam q’s xx
Outsourcing
When businesses contract out some activities to other business rather than doing them in house
Mass customisation
Method of producing to order. Combined the flexibility of a custom - made product with the low cost of mass production.
6 things to look for in a supplier
Price, quality, capacity, reliability, flexibility and payment terms
Supply chain
process of developing, sourcing, producing and providing goods and services to consumers
