Management of Operations - Unit 3 Flashcards
What is Operations?
Input - Buying raw materials and hiring labour
Process - Using resources to produce products for sale, including machinery and a skilled workforce
Output - Goods and services are packaged and sent to suppliers (channels of distribution)
What are the 3 categories of stock?
- Raw materials - resources required to produce a product
- Work in progress - goods which are still to be completed
- Finished goods - final product waiting to be distributed to the end-user.
What are the main 4 stock levels?
Minimum Level - the level that stock must not fall below.
Maximum Level - the maximum amount of stock which can be held at any given time.
Re-order Level - the point at which new stock should be ordered.
Re-order Quantity - once the re-order level is reached, a standard quantity is automatically requested.
What is Just-In-Time (JIT) Inventory Control?
-Stock is not held in a warehouse
- Stock is ordered on a regular basis to arrive when they are needed
- This means regular deliveries - often daily
- Suppliers need to be highly reliable.
What is the difference between Centralised and De-Centralised storage and warehousing?
Centralised - Involves storing inventory in one central location in a large purpose built warehouse. Means the company knows exactly what stock they have at any given time.
De-Centralised - Involves inventory being held across different departments/warehouses. this can increase efficiency however can also lead to inconsistencies across the business.
What are the 2 Types of Production
Labour Intensive - people do most of the work, rather than machines
Capital Intensive - machines are mostly used, normally in factories
What are the 3 Methods of Production?
Job Production - When a single product is custom-made to a customers own individual specifications. Made one at a time.
Batch Production - When products are produced in small or large batches. commonly used in the food industry.
Flow Production - Large number of products produced continuously on a production line. Commonly used in the car industry.
What is the difference between Quality control and Quality assurance?
Quality Control - Involves checking products after they have been produced to make sure they meet the standards expected.
Quality Assurance - Involves checking products are regular intervals during the production process.
What are examples of Environmental issues that businesses must avoid?
Pollution -smoke, fumes and emissions into the air
Dumping of Waste - wast must be disposed of carefully and lawfully
Using up Limited Resources - Where possible, sustainable resources should be used.
What Positive Environmental actions can Businesses take?
Recycling - Allows waste material to be reused into new products.
Reduce Packaging - Reducing unnecessary packaging will cut down on waste.
Reducing Energy - Cutting down out additional lighting and heating and reducing vehicle journeys will reduce the damaging effects on the environment.
What are some examples of Technology in Operations?
Computer-aided Design
Computer-aided Manufacture
Electronic point of sale (EPOS)
Robotics
Barcodes and QR codes
