Logistics Flashcards
what logistical management?
How the product is transported and distributed from the manufacturing site to the customer/store.
what are the methods of distribution?
- road
- rail
- air
- sea
what are the advantages of road distribution?
- relatively low costs
- arrives straight to destination
- can be refrigerated
- quick and convenient
what are the disadvantages of road distribution?
- Road work delays
- Weather delays
- Not suitable for larger products
what are the advantages of rail distribution?
- no issue of traffic builds up
- faster than road
- more environmentally friendly
- convenient for bulkier products
what are the disadvantages of rail distribution?
- no direct
- weather can have an impact
what are the advantages of air distribution?
- faster methods for long distance
- useful for remote area
what are the disadvantages of air distribution?
- very expensive
- still require road transport to complete the delivery
- not environmentally friendly
what are the advantages of sea distribution?
- best for international trade
- allows huge amounts to be transported
what are the disadvantages of sea distribution?
- slowest method
- no use for perishable items
what is distribution and logistics concerned with?
This is concerned with getting the finished goods to the right customer safety on time.
what are the types of ways a business can transport gods to customers?
Some organisations may choose to transport goods themselves other may employ as courier (DPD, Hermes. Yodel)
when deciding how to transport goods to customer they need to consider?
- Cost of delivery/weight of product.
- Type of product e.g. frozen food – chilled vans
- Legal restrictions i.e. tobacco, alcohol – delivery must be licensed.
- Finance available – next day delivery, first class
- Reliability of courier
what are the two methods by which manufacturers produces goods?
- labour intensive
- capital intensive
what was is capital intensive?
This is where the production process relies more on machinery and equipment instead of human input.
when is capital intensive suitable?
Suitable where the cost of machinery is more cost effective compared to labour (machinery cheaper than wages)
when is capital intensive used?
Also used where the process is repetitive and requires precise, consistent output
what are the advantages to capital intensive?
- Can work 24/7
- Standardized quality
- Fewer employees (wages)
- less skilled workforce required
what are the disadvantages to capital intensive?
- machinery/equipment is expensive initially
- breakdowns can be excessive and cause production to stop
- customisation difficult
what is labour intensive?
This is where a business uses a larger proportion of human input than machinery in the production process.
what is labour intensive suitable?
Suitable where he production process requires flexibility and customisability.
what are the advantages of labour intensive?
- for creative industries
- labour is readily available (training required)
- no expensive equipment
- unique products
what are the disadvantages of labour intensive?
- Expensive and time consuming to recruit, select and train
- Training takes time
- Quality can vary (mistakes)
capital intensive, what is batch production?
- Groups of identical products being made at one time.
- Different ingredients used for different groups – each batch will differ in flavour, colour etc
- One group is made then machines are cleaned, and another batch of flavour is made.
capital intensive, what is flow production?
- Involves identical products being made along a production line.
- Products being produced flows through various stages with parts being added at each stage (each stage adds value)
- Continuous output of identical products.
- Tends to be mainly capital intensive.
- Mass production with use of machinery (automation
what can capital intensive production be?
Capital Intensive production can be either automation or mechanisation.
what is automation?
Refers to the product being fully automated. This uses CAM (computer aided Manufacture) to control fully automated assembly lines.
what are the advantages of automation?
- Production time is quicker and can be repeated constantly without errors.
- Accuracy is far greater because there is no human error.
- There is no requirement for workers to man the machinery, so this saves money.
- The work environment is safer as employees will not be in automated work areas while production takes place.
what are the disadvantages of automation?
- There is no flexibility as the machinery can only do what it is programmed to do.
- More machinery to complete production means more pollution and, in some cases, environmentally unfriendly fumes.
- It causes unemployment to increase, which has an economic impact on a country.
- Machinery breaks down are expensive.
what is mechanisation?
Refers to labour and machines working together on the production of a product.
what are the advantages of mechanisation?
- Standardisation can be pre-programmed, allowing production to be consistent.
- Machinery improves the accuracy of work and complete difficult tasks for the worker.
- Using labour allows for production issues to be flagged up quickly.
- Labour can be trained in becoming an expert at operating machinery.
what are the disadvantages of mechanisation?
- Initial set-up costs are high.
- Machinery could break down and idle time is a negative factor.
- Machinery needs to be updated and upgraded often which can be expensive
- Labour needs to be trained, which is expensive. They will probably also require training whenever machinery is guarded.
labour intensive - what is job production?
- Company produces a single product or small number of products to specific requirements.
- May be a one-off job (unique) to suit a customer’s particular requirement.
- Emphasis on ‘tailor made’ design.
- One job is finished before another is started.
what factors should be considered when choosing a method of production?
- The skills of the workforce
- The finance available to the organisation
- The technology available to support the organisation
- The size of the business
- The nature of the product being made
- The demand for the product – the number to be produced
- The standard of quality required
