Managment of Operations Flashcards
What four things influence the schedule for production
Demand from customers and which orders are most important Design of the product - some customers ask for a higher specification of product to be made especially for them Resources avaliable and if they are in stock or are to be ordered in time for production Production capacity - the level of production that can be provided with the resources avaliable
What are the three catagories of stock
Raw materials Work-in-progress Finished goods
What are four factors that must be considered in stock managment
The quantity of products that are required The volume than can be manufactured at one time The working practices The storage space avaliable
What four features should effective stock managment have
A process for regular stock checks Some cost savings A security system in place to prevent theft A system for rotation of stock to prevent deterioration
What are four advantages of centralised storage
Improved security of stock Can be supervised by specialist staff Can operate agreed procedures for issue and receipt Can use agreed procedures for ordering
What are two disadvantages of centralised storage
Time is wasted going to and from stores The cost of specialist staff and a dedicated storage area will be high
What are three advantages of decentralised storage
Stock is always on hand when required Orders of stock will reflect actual usage Faster turnover of smaller amounts of stock reduces likeliheed of deterioration
What are two disadvantages of decentralised storage
Less rigid control of security - theft and loss are more likely Takes up space in production areas
What are four problems with overstocking
High costs Lack of storage space High opportunity costs Unsold stock
What are four problems with understocking
Loss of customers Production stoppages Higher admin costs Less discount avaliable
What four things does succesfull JIT depend on
a highly skilled and flexible workforce that is able to respond to the challenges of JIT absolute certainty regarding delivery times, to ensure that production runs to schedule if suppliers provide sub-standard items the whole system fails as there isn’t an alternative resource waiting stock Good quality control procedures are essential to ensure quality is high
What are four advantages of JIT
improved cash flow reduced stock holding costs Less stock wastage Higher profits due to lower costs
What are four disavantages of JIT
More difficult to respond to changes in customer demand Higher administration/transport costs Lack of bulk buying discount Suppliers must be very reliable for system to work properly
What is capital intensive production
Capital intensive refers to a productive process that requires a high percentage of investment in fixed assets (machines, capital, plant) to produce.
What is labour intensive production
A production process that has a high reliance on the skills of human labour rather than machine automation.
Four advantages of capital intensive production
Machinery can operate 24/7 Higher volume of goods can be produced quality of output is standardized and consistent Removes the chance of human error
Four disadvantages of capital intensive production
Large initial financial outlay to purchase machines Cost of maintaining and repairing equiptment can be high Only suitable for standardised production process production time is lost if machines break down
What are four advantages of labour intensive production
It its easier to organise this type of production Additional flexibility due to human skills More responsive to changes in the needs of customers Lower start-up costs than capital-intensive production as no intial outlay on machinery/equipment
What are four disavantages of labour intensive production
A skilled workforce can be expensive to recruit, pay and train Business cannot take advantage of economies of scale Staff illness or absence can impact on the production process Additional quality control measures may be required due to human error
What four factors must be considered when choosing a method of production
The nature of the product The quantity to be produced/market size The level of quality required The resources avaliable
What four things does quality mean for consumers
Quantity provided for the price paid reliability and durability of the product The extent to which the product or service satisfies their requirments How environmentally friendly the product is
What four things does quality mean to producers
Meeting exact specifications A highly skilled workforce No customer complaints Having a good design to work with
What are four methods of ensuring quality
Using high quality resources quality control quality assurance quality standards and symbols
What is quality control
A method in which quality inspectors coduct spot checks on the final products
What is quality assurance
Quality assurance is when quality checks are conducted at each stage of production rather than simply at the end
What are quality symbols
Symbols such as BSI kite mark and CE Mark are used to convey to customers that standards are being met
What are four benefits of mystery shoppers
Feedback is recieved that can be used to improve processes Training needs can be identfied Improves customer retention Monitors quality of products and service
What are four ways HR can contribute to maintaing quality
Recruiting only the best staff Implementing and maintaing a process of appraisal Staff training and development should be a continuous process A staff handbook should be issued to all staff
Factors to consider before choosing a distribution method
Reliability of other organisations legal restrictions Avaliability of finance The product being distributed
What are five transport methods
Road Rail Sea Air Pipeline
What are four problems in logistics
Road works Transport accidents and diversions Bad weather such as high winds, heavy rain or snow and ice Industrial action at ferry points, air traffic control
What are four benefits of adopting fairtrade
Customers are happy to buy fair trade products so there will be increased customer loyalty Most businesses who are licensed for fairtrade enjoy a good reputationand public image and then find it easier to attract new staff A survey by free poll found that 96 percent of consumers are prepared to spend extra on products if they perceive them to be more ethically produced The uk market for fairtrade goods is doubling in size approximatley every 2 years.
What are three costs of adopting fairtrade
The price is higher for consumers compared to non-fairtrade products, which can be viewed unfavourably by some consumers Small scale production is promoted fairtrade, but econjomies of scale cannot be acheived and it is more difficult to control production methods and prices. Concern over climate change and food miles has resulted in some businesses and consumers weighing up the benefits of faitrade with the cost to the environment of transporting goods
What three environmental issues should businesses avoid
Pollution Dumping of waste Using up scarce resources
What three positive environmental action can businesses take
Recycle Reduce packaging Reduce energy use
What are four benefits of complying with environmental controls
Reducing energy use can reduce running costs Reducing the amount of raw materials used can reduce production costs and minimise the cost of waste disposal Income may be generated from recycling equipment and materials, and savings can be made on the cost of disposing these items Taking preventative measures to maintain the enivornment can be more cost-effective than dealing with consequences of environmental damage after it has been done
What are three costs of complying with environmental controls
extra financial costs, recycling of waste extra time required to train staff to raise awarness of ethical practices and environmental protection procedure Policies and procedures have to be written and kept up-to-date with new legislative requirements
What are two benefits of ethical actions
The business will gain a good image and reputation making it easier to attract customers and to recruit staff Staff will be more satisfied and motivated if they believe the business is operating in the right way and treating everyone fairly
What are two costs of ethical action
Same as environmental costs Extra time will be needed to check that suppliers are acting ethically and being environmentally friendly
What are four benefits of epos
Valuable market research data can be collected about the type of products that are popular or unpopular which in turn can inform decisions about which products to stock more/less of Customers can use epos data to check the stock levels of products when buying on-line The business can track how sensitive customers are to changes in selling prices
What are two ways technology can be used in operations
CAD and CAM
What are two benefits of quality assurance
Costs are reduced because there is less wastage as mistakes are ratified early in the production process It improves worker motivation as workers have more ownership and recognition for their work
Stock control Diagram
