Inside of Production Flashcards
Define Production.
The process of turning raw materials into goods and services that can be sold.
What do all different forms of production all involve?
Inputs such as labour, raw materials and energy being transformed into outputs.
Inputs → Transformation (adding value) → Outputs
What are the two types of production?
Job Production and Flow/Mass Production
What is Job Production?
A method of production where a product is produced that meets specific customer requirements.
What is Flow/Mass Production?
The continuous movement of items through the production process using production lines to manufacture products.
Define Efficiency.
How well a business uses its resources to produce products.
If a business was to become more efficient, what would it mean?
High amount of output with a low amount of input.
What is Lean Production?
Using as few resources as possible with as little waste as possible whilst ensuring quality to increase efficiency of production.
What are the two types of Stock Management?
Just in Time (JIT) and Just in Case (JIC).
Why is Managing Stock important?
The more stock you have the more it costs to store, but if they have too little then they risk running out.
What is Just in Time (JIT)?
When inputs arrive and outputs are produced just when they are needed.
What is Just in Case (JIC)?
A method of operating a production and distribution system with buffer stock (extra stock) of items at every stage of the process just in case there is a shortage in supply or customer demand suddenly increases.
Define Inventory.
The amount of stock.
Define Buffer Stock.
Extra stock incase of demand increase.
Define Lead Time.
How long it takes for the new stock to arrive.
Define Procurement.
Getting the right supplies from the right supplier at the right price.
What are three factors of an Effective Supplier?
Price (value for money), Quality (consistently providing the quality that is expected by the customer; the right product at the right time), Reliability (delivers correct product on time and goods and services work as described).
Define Logistics.
Making sure the correct products are procured and that they will arrive when needed.
What are the three main elements of Logistics?
Transportation, Storage And Distribution.
What are two benefits of Managing an Effective Supply Chain?
- Increased efficiency - order to despatch times can be reduced.
- Lower unit costs - prices can be negotiated with suppliers to make sure that a business receives value for money.
Define Quality.
Meeting the needs and wants of a customer.
How can a business measure the quality of its products and services?
- Levels of product return.
- Failure/ Reject rates.
- Customer satisfaction.
- Customer complaints.
- Customer loyalty.
- Mystery Shoppers.
What are the three ways of Managing Quality?
- Quality Control.
- Quality Assurance.
- Total Quality Management (TQM).
What is Quality Control?
The process of inspecting products and services to ensure that what the customer receives is of high standards. Products are checked at the end of the production process.
