Operations Flashcards
Just in time stock control meaning?
enough inventory is bought to allow the job to be completed and no extra
advantages and disadvantages of just in time method?
advantages: saves money saves storage encourages efficiency links with suppliers can be improved workers motivation can be improved
disadvantages:
can be difficult to adjust to changes in demand
no bulk buying or discounts
loss of reputation if breakdowns occur
advantages and disadvantages of labour-intensive production?
benefits:
employees are more motivated as they aren’t losing their jobs to machinery
can cost less than capital intensive as capital intensive production has a high initial set-up cost
adaptability as humans can use their creativity and intuition to problem solve
improves employee relations as employees are required to communicate
costs:
wage costs and training costs need to be taken into account
high risk of human error - humans make mistakes and machines do not
time limits - humans require holidays and breaks
physical limits - machines can work 24/7 whereas humans cannot
humans need to be paid for overtime
what are the roles of a logistics manager?
planning inventory required using production and sales budgets
organising for the resources needed for logistics including warehouse equipment and staff
commanding warehouse staff to carry out tasks
coordinating the supply chain, channels and methods of distribution so the deliveries are made on time
what is capital intensive labour?
Capital intensive is when products are mainly produced by machines and robots, meaning the initial outlay and maintenance, will be very high. Capital intensive production can be either mechanised or automated
what is mechanised production
Mechanised production is when the production process requires both machinery and humans. Machines are required to carry out most of the work although they are operated and controlled by humans.
what is automated production?
Automated productions is when the production process is mainly carried out by machinery/robots and is mostly controlled by computers. Human input is limited in automated production.
what is the advantages and disadvantages of automated production?
Advantages:
Less employee wages and costs
Quality can be standardised, the same every time
Machines can work continuously, 24/7 meaning products are produced quicker
Machines can carry our dangerous tasks which will reduce accidents
Disadvantages: More difficult to customise orders Breakdowns in production can be costly Initial set up costs of machinery are high Employees may become demotivated
what are some factors that may affect whether a organisation chooses capital or labour intensive production?
Whether a company chooses to use labour intensive or capital intensive methods of production will involve many factors:
Finance available - a large amount of capital is required to invest in capital intensive production. Some businesses may not be able to afford to invest in this method of production
Quantity - if large quantities of identical goods are required then a company will be more likely to use capital intensive methods of production. Whereas if the product being supplied is a low quantity of a tailored product then labour-intensive methods would be preferred
Technology - if the required technology to produce the goods is unavailable then the company would have no choice but to use labour intensive
what are methods that could be used to ensure quality?
high quality raw materials quality assurance quality control quality management benchmarking quality circles mystery shopper
why is quality important?
Quality is one way of ensuring businesses attract and retain happy and loyal customers and build up an excellent reputation.
A business that gets a reputation for poor quality will lose market share quickly and will cause customers to be put off buying again from that company.
what is quality control?
This is where finished products are checked by inspectors to see if they meet the set standard.
Products are inspected at the start and the end of the production process.
Any product not meeting the standards of quality set by the business will be sent for rework or discarded completely
advantages and disadvantages of quality control?
advantages
Reduces chance of poor quality products reaching end users
Only some employees need to be trained as inspectors to look for faults
disadvantages
Faults only found at the end of production
High wastage costs
Reworking faulty products cost time and money
what is quality assurance?
This is where quality is built into the production process.
For example, all staff check all items at all stages of the production process for faults. In this way, everyone takes responsibility for delivering quality.
Successful quality assurance:
- results in zero-defect production
- aims to prevent the faulty product from being produced
what are the costs and benefits of quality assurance?
With quality assurance the product is checked throughout production. This means that mistakes can be identified quickly. This will reduce waste. This in turn will save the company money.
However, this method of quality control can be costly due to the regular checks being made throughout the production process. Regular checks can also slow down production. This means lower productivity.
what is the difference between quality control and quality assurance?
Quality control will check the inputs and outputs from the production process whereas quality assurance will check the product regularly throughout production.
Quality assurance reduces waste as faulty products are identified early in the production process whereas quality control will save the company time and money as less checks are required during the production process.
what are quality circles?
Quality circles are small groups of workers of different levels in the firm who come together to discuss and solve problems in production.
what are the benefits of quality circles?
Managers, assembly line workers and engineers mix together and everyone’s opinion is valued and respected. Membership of quality circles is voluntary.
Employees involved in quality circles may become more motivated as they feel valued within the company. Employees who are doing the job often have a better idea on how to improve processes.
what is benchmarking?
Benchmarking involves finding the best practice in your industry and then copying your competitor but adding some extra value or USP to the product.
what are the costs and benefits of benchmarking?
advantages:
Identifies best practices in the market that will improve performance if these methods are adopted by the organisation
Can provide a goal for employees that will increase motivation
Can make the organisation more competitive in the market
disadvantages:
It May be difficult to gather the required information from competitors
It can be time-consuming to study techniques used by other companies
Internal factors such as lack of finance may prevent the adoption of competitors’ practices
The company/product will only be as good as the benchmark set
what are the costs and benefits of fair trade activities?
Benefits:
Quality of life should improve for workers in primary industries
The long-term prospects for children in the area should improve
Fairtrade mark will make products more attractive to customers
Improves the company’s reputation if they are seen to be ethically responsible
Costs:
Fairtrade products can cost more, which may put some customers off
Limits the choice of suppliers for a business
what is CAD (computer-aided design)?
Computer-aided design (CAD) is when a computer system is used to create or modify a design
CAD can be used to simulate a design in a 3D environment allowing the designer to have an idea of how the finished product will look.
This will lead to more accurate design processes, meaning less wastage. Amendments can be made to designs without having to redo drawings or rebuild prototypes. This saves the developers time.
how can financial availability be a factor in production choices?
finance available - a large amount of capital is required to invest in capital intensive production. Some businesses may not be able to afford to invest in this method of production
how can technology be a factor in production choices?
if the required technology to produce the goods is unavailable than the company would have no choice but to use labour intensive
how can quantity be a factor in production choices?
if large quantities of identical goods are required then a company will be more likely to use capital intensive methods of production. Whereas if the product being supplied is a low quantity of a tailored product then labour-intensive methods would be preferred
what is a trade logo?
A trade logo is an identifiable sign which shows that a product or service conforms to certain standards or identifies them in a specific category. For example:
Fairtrade logo
These standards always need to be maintained or the quality standard will be removed from the business. This may generate bad publicity.
Businesses that achieve recognised quality standards often gain a competitive advantage over other businesses.
Customers perceive the products provided by these companies as superior. This may lead to customer loyalty and the ability to charge higher prices.
