Operational Decision Making Flashcards
Operations
This is the business function that organises, produces and delivers the goods and services
purpose of business operations
to produce goods
to produce services
Production
using resources (raw materials, fiance, skills) to prodce goods and services
production methods
job production
batch production
flow production
production process
the impact of different types of production process;
keep productivity up
keep costs down
allows for competitive prices
production and competitive advantage
operations is linked to productivity, flexibility, cost and quality
if a busines can provide custom products and services this will make their product more desirable
productivity
output per worker how much does a worker produce over a period of time. Increasing productivity leads to a greater competitiveness in the market.
economies of scale
average unit costs of production fall as the volume of production increases.
job production - production processes
one off or bespoke products
focus on customer needs and individual service
specialist skilled workforce increases costs
high profit margins
longer production process
batch production - production process
larger volumes of productions than job production
some flexibility eg different flavours
semi skilled workforce
some levels of automation
productivity reduced when switching between batches
flow production - production processes
high volumes of products and low margins (with high productivity)
standardised production
low skilled workforce
highly automated process
setting up expensive machinery increases costs
Provide examples of technology used in business
computer aided design (CAD)
Supply chain management (scm)
geographical positioning systems (gps)
electronic point of sale (epos)
3d printing
e-commerce (shopping online)
the impact of technology on operations
speeds up the production process
keeps businesses in touch with the customers
lower production costs
ensures fewer mistakes and defects
can involve a costly initial investment
requires employees to be trained onto use the technology (increase cost)
factors affecting the use of technology
productivity
cost
quality
flexiblity
What is quality control
this is seen as one part of the chain of production. a quality controller will examine\test products for quality once the product has been made
quality assurance
this involves focusing on quality at every stage of the production process. everyone is involved and everyone is responsible. As a result there should be zero defects
benefits of good quality products
charge a premium price
buuild a strng brand image
closely linked o meeting customer need
build a competitive advantage
a way of differentiating USP
less waste
reduces costs
