Operations Flashcards
What is job production?
Items that are made individually and usually personalised
What is flow prodcution?
An assembly line which produces standardised products
What is needed for Job production?
- labour intensive
- high quality and customised items
- niches - good for smaller markets
Characteristics of flow production
An assembly line
Capital intensive
Mass marlet and low production costs
What is lean production
- techniques geared towards reducing waste during production
What is Kaizen?
Means continuous improvement
The process focuses on workers continuously making small imprivemnets for overall progress
What is JIT
A method for managing stock taht aims to keep stock levels low at all times
Benefits of JIT
- reduce costs as the business doesn’t have tompay for storage
Disadvantages of JIT
- needs more frequent deliveries. higher transport and logistic costs.
- buying low quantities which means they aren’t beenfiting from economice of scale
- will not be able to meet an unexpected surge in demand
What is procurement?
The process of finding and buying the materials and equipment that a firm needs to provide its product or service.
What is logistics?
The organising of the processes involved in the supply chain (including transport of raw materials and final products)
Benefits of efficiency in logistics and procurement
It will minimsise waste in production proceses and find materials at the best possible price which can lower the business’ average unit cost.
