Business Operations Flashcards
Operations management
The department responsible for the transformation of inputs into outputs
Job production
Where one off tailor made products are made from start to finish
Flow production
Where production occurs continuously on an assembly line
Lean production
An approach to production developed by the Japanese to eliminate waste
Just in time
Production happens with minimum stock levels; tasks are completed Just In Time for the next task
Division of labour
Breaking a job down into small, repetitive tasks that can be done quickly by specialised workers
Benefits of job production
- Changes to customer requirements can easily be handled
- Each product is unqiue
- Often associated with higher quality
- Labour intensive production method
Benefits of flow production
- Production can be continuous
- Consistent quality goods can be produced
- High amounts of output can be produced
Drawbacks of flow production
- Set up costs are high
* Motivation levels amongst employees can be low
Benefits of lean production
- Employees are used more efficiently
- Costs are reduced
- The number of defective products is reduced
Disadvantages of lean production
- Lots of stock which wastes space
- Staff bored
- Inflexible
Quality management
Controlling activities to ensure products and services meet the specifications
Quality control
Checking/inspecting quality at the end of the production process to detect faults
Quality assurance
Self checking quality at each stage of the production process to prevent defects
Quality standard
Setting a minimum acceptable standard. Often a legal requirement.
Quality
A product that meets customer requirements
Total Quality Management
An approach to quality where everyone is focused on placing quality at the heart of all decisions and actions.
• Type of lean production
• Ensure 100% quality
• Zero defects
Why is quality important?
- USP, differentiate from competitors
- Charge high price (premium pricing)
- Reduce costs - don’t have to refund
- Aids operation - increase efficiency
Benefits of quality control
- Inspectors are specialised
* Staff can carry on with roles
Drawbacks of quality control
- Expensive
- Lots of waste
- Don’t check all stages
Benefits of quality assurance
- Empower staff
- Don’t need to employ extra staff
- Reduce waste
Drawbacks of quality assurance
- Only work if staff buy in to it
* Takes time to implement
Why do large businesses have quality problems?
All diseconomies of scale
• Multinational - harder to communicate
• Often made overseas - lower standards / lower skills
• Making products - (large scale / decrease costs) cause errors
Costs and benefits of managing quality
Costs:
• Staff training costs
• Inspection costs are high, when using quality control
Benefits:
• Additional sales are made
• Product recalls are reduced
