business operations Flashcards
methods of production
job
batch
flow
what is job?
individual products are made one at a time to meet specific customer needs
what is batch?
where one group of identical products are made at the same time, before moving onto producing the next group
what is flow?
where identical, standardised products are produced on an assembly line, workers can specialise in limited tasks
procurement
obtaining or purchasing goods or services for business purposes
quality control
when an inspector checks the products to see if there up to a good enough standard to try stop damaged products going to customers
quality assurance
tries to stop defective products being produced in the first place, telling workers whats acceptable
total quality management (TQM)
making sure quality is top priority, improves staff morale and quality, working as a team to make it the best quality possible
what is quality
means a product or service meets the requirement of the customer
how can you achieve quality
- set quality targets
- staffing levels
- complaint levels
how do you monitor if quality has been met?
- mystery shopper
-feedback
why is quality important?
- keeps cost down
- maintain a motivated workforce
- good reputation
- less waste
buffer stock
stock to fill shelf or need a sudden demand
lead time
how long stock takes to come
what can the supply chain include
- procurement of supplies, selecting supplier
- logistics, getting goods and services
- stock control
supply chain
the sequence or process required for the production and distribution of goods or services to the consumer
why do suppliers matter?
- quality
- customer satisfaction
- costs
- reliability
things to think about when selecting suppliers
- range of items available
-flexibility of the supplier - costs
- quality
- speed of delivery
Just in time
stock arrives just in time to be used
Just in case
a level of stock is held just in case its needed
pros of just in time
- reduce waste
- greater productivity
- more responsibility placed on employers
cons of just in time
- higher advantage unit cost
- very reliant on supplier
- risk of failing to meet unexpected demand, loss of sales, reputation issues
just in case pros
- manage uncertainty
- negotiate a better deal with suppliers
cons of just in case
- higher storage costs
- wastage
