management of operations Flashcards
quality
the standard of raw materials sold by the supplier
the higher the quality of raw materials , the higher quality the final product should be
price
how much the supplier charges for raw materials
price needs to be as low as possible in order to maximise profit
location
where the supplier is situated in relation to your business
if the supplier is located further away you may be charged a higher delivery fee
discounts available
when your supplier reduces the price of raw materials
allows the business to reduce costs if putting in a bulk order
manual record keeping
where record keeping is done manually a bin card may be used to record inventory received and issued. bin cards record inventory coming in, inventory going out and a balance.
computerised record keeping
most organisations will now use a computer based system to record its inventory.
cctv and security tags - to deter theft of inventory from both the warehouse and store
databases/spreadsheets - using software to hold the inventory information and also carry out calculations and analysis
why use a computerised system?
- records will be more accurate compared to manual system
- inventory levels can be automatically updated
- inventory can be automatically ordered from your supplier
- easier to analyse the popularity of certain products
job production
a one off product is made to a customer’s own specifications. one product is finished before another is started.
advantages
-more motivating for employees as they see the product from start to finish
-can charge higher prices as product is customised
disadvantages
-production can be expensive and time consuming as its very labour intensive
-if working on a job/product, they may not get paid until it is completed
batch production
groups of identical products are made at the same time. once each batch is completed the machinery is cleaned and reset for the next batch.
advantages
-each batch can be customised for a specific customer order
-the same machinery
flow production
The continuous production of products along an
assembly line with parts being added at each stage.
Often referred to as mass production.
Advantages
-Production can take place 24 hours per day as it’s very capital intensive
-Standardisation of products
-Use of low-skilled workers reduces the wage bill
disadvantages -Can be very expensive to purchase specialised machinery -If machinery breaks down then production will come to a halt -Jobs are very repetitive which can
quality inputs
ensuring all inputs are of the highest standard. this includes
- high quality material
- well trained staff
- up to date/well maintained machinery
quality control
checking the product at the end of the production process.
this prevents a faulty product from reaching the customer.
quality assurance
checking the product at regular intervals throughout the production process.
allows for mistakes to be spotted earlier which can then be re-worked back into the production process.
benchmarking
copying the production techniques of the industry leader.
ethical
being ethical in production is a key feature of many modern businesses. this can take many forms, including:
paying your employees
using fairtrade suppliers
ensuring child labour is not used anywhere in your supply chain
purchasing materials from suppliers who treat animals well
