B3 - Operations Flashcards
What is Production
The process of turning raw materials into goods and services
What are 2 types of Production?
- Job Production
- Flow Production
What is Job Production?
Producing items that meet the specific requirements of the customer
What is advantages of Job Production
- Products - high quality
- Meets individual customer requirements
- Greater job satisfaction for employees, involved in all stages of production
What are disadvantages of Job Production?
- Requires skilled employees, demand higher levels of pay
- Labour intensive, as less suited to the use of machinery
What is Flow Production?
Continuous production to produce many identical products
What are advantages of Flow Production?
- Workers used can specialise in one job, makes them more efficient
- Products will have consistent quality
- Ideal for large-scale production of mass- market products
What are disadvantages of Flow Production?
- Expensive to purchase machinery and to set up
- Jobs can be repetitive and boring as it’s machines, lowering the motivation of workers
What is Lean Production?
Focuses on cutting out waste, whilst ensuring quality.
Aims to cut costs by making the business more efficient and responsive to market needs.
What is Procurement?
The process of a business of buying raw materials
What is Just In Time stock control
Stock comes in from suppliers when needed
What are benefits of Just In Time?
- Less stock held
- No warehouse costs
What are drawbacks to Just In Time?
- Making more frequent purchases
- Buying in smaller quantites means no Economies of Scale
What is Just In Case stock control
Have a large amount of stock of resources from suppliers
This means the business won’t run out of stock.
What are benefits to Just In Case?
Holding lots of spare stock, to satisty consumer demand
What are drawbacks to Just In Case?
The cost of holding spare stock, cost of warehouse
What is Logistics?
Process of transporting goods to customers
- Transportation, Packaging, Inventory, Security
What is a supply chain?
All the businesses which provide parts of the porduct until it gets to the consumer
What is Total Qulaity Management
An apporach to long term success through customer satisfaction
What are the features of TQM
1) Quality Circles ( small group of workers meet to solve work problems )
2) Zero Deflects ( business ensure products aee free from defects )
3) Change in Culture
4) Internal Customers
5) Lean Approach ( continuous improvement )
What are advantages of TQM to a business ?
- Not paying for inspectors , lower cost
- Employees are motivated, increased productivity
- Improved quality , more satisfied customere
What are disadvantages of TQM to a business ?
- some staff are resistant to change in culture
- costs to train staff , may be expenisve for smaller businesses
- takes time to introduce , demands time
What is Outsourcing ?
Involves getting another business or organisation to provide the service for you
Outsourcing examples ?
- Production
- Payroll
- Delivery
- Purchasing and maintaining information systems
What is a Franchise?
Where a small business owner buys the rights to sell the goods and services of a large well-established company
What is a franchisee ?
small business owner buying the rights
What is the franchisor ?
large business who are selling the rights
