Business operations Flashcards
What is Flow production
makes large numbers of identical products on a continuous Assembly line
what are the 3 advantages of flow production
the business is able to produce large volumes of products
can gain economies of scale so lower avg cost therefore competitive prices
tasks are much more simpler so not labour intensive
what are the 3 disadvantages of flow production
capital intensive for machinery and storage and space
Employees may become bored or demotivated due to their limited range of tasks
if assembly line breaks products cannot be produced
what is lean production
using fewer resources as possible for minimum waste
what are the two methods of lean production
kaizen and just in time
what is kaizen
when employees are given the responsibility for suggesting ways to improve production process ‘ continues improvement’
what is just in time
where the business doesn’t store any raw materials. Instead, it has regular deliveries that bring only what is needed before its existing raw materials run out, so buffer stock is not needed.
what are the advantages of just in time
more space for production
fresher products
reducing costs so more competitive pricing
what are the disadvantages of just in time
hard to adapt to unexpected demand
poor service if customer cannot buy desired product due to run out in stock
What is total quality management
making quality the responsibility of every employee encouraging them to think about the customer after sales and quality of production focusing on getting it right the first time
what are advantages of TQM - 3
focussing on after sales and quality increases customer satisfaction therefore more repeat purchases
cost reduction
increased efficiency
reduced waste and errors
what are the disadvantages of TQM
staff training is costly and money and time needs to be spent on it
can get demotivated if seems like too much work
