Business Operations Flashcards
What is a job production?
It is a unique, one off and usually expensive type of production. Job production involves a skilled business manufacturing a bespoke good or service, tailored to the customers demands.
eg cake designer
What is a flow production?
Flow production involves the unskilled labour of a mass produced items. Lots of capital (machinery) is used to make the goods in bulk. eg hot dogs
What does lean production involve?
Fewer inputs are used so less waste is produce.
What is Just in time (JIT ?)
Inventory management - where materials are replenished exactly when needed.
How is production made more efficient by the use of lean production?
It is more efficient because less time is used on disposing of waste that time can be used on producing more products. By wasting less the business is minimising costs.
What is procurement?
The act of obtaining something. It’s all about how businesses get their supplies.
What is Just in case (JIC) supplies?
Where more stock than is needed is held to allow for delays and growth is demanded.
What is logistics?
How a good gets there - managing all your supplies move around.
What are two benefits of Just In Time?
- Less waste of products
2. No storage costs
What are two drawbacks of Just In Time?
- No margin for error
2. If there are technical issues there will be a severe loss in profit.
What is a benefit of Just In Case?
They store everything they sell or if there is an issue with the supplier they will still have goods to sell.
What is a drawback of Just In Case?
Robots are expensive to buy or storage costs.
What are three factors that may affect choice of supplier?
Quality of product, ethics, reliability
What is the effect of procurement on a business?
A business will be more successful if they have effective procurement. This can be demonstrated when suppliers and business owners communicate with each other and are both reliable.
What is the effect that logistics have on a business?
Effective logistics means the business creates and delivers a product to the customer in the most reliable and cost effective way.
