operations Flashcards
(52 cards)
production
when resources are made into products
adding value
adding value in order to make a profit
+ customers - don’t produce yourself, time saved
+ business - selling price - cost of raw materials = adding value
how can you add value
brand/ logo, design, quality, right sizing, sponsors, good stores
wholesaler channel of distribution
producer, wholesaler, retailer, customers
wholesaler buys in bulk and sells in smaller quantities
+ less spent on marketing
- expensive for customers as cost plus
retailer channel of distribution
producer, reatailer, customer
eg tesco, large business can buy in bulk
+ cheap, convenient, better experience for customers
- relationships needed with brands
direct channel of distribution
producer, customer
online, producers having own stores
+ cheap for customers, can be done from home
- lots of advertising needed
flow production
passes down an assembly line, no workers, continuous output
+ efficient
- initial cost of machinery, demotivated employees
cell production
workplaces split into cells/ areas each deals with one stage of the product
+ motivated employees, teamwork, specialised
job production
unique, only one is made and specific to customers. highly skilled workers
+ high quality, personalised, charge more
- expensive to make, only one product at a time, labour
batch production
more then one unit at a time, machinery reset between batches, batches vary
+ output increased, less waste, made to order
- reset machines, contamination, storage
specialisation
specialised workers in each departments, improve efficiency, less waste, higher quality product
division of labour
breaking down a job into specific tasks for specialised workers who are more efficient z
productivity
relationship between input and output, greater output in relation to input = high productivity
output/ input
product vs services
product > tangible, storable, measurable, repeatable
services > intangible, experience, difficult to repeat
capacity utilisation
total level of output in a given time period
current capacity/ max capacity x100
stock - raw materials
hasn’t been used in manufacturing yet. too much = large storage needed, too little = can’t keep up w demand
stock - work in progress
raw materials undergoing development to become the final product. too much = high workload/ extra employees/ machinery needed. too little = employees have no work so become demotivated
completed stock
the final product. too much = held for too long becomes obsolete. too little = can’t keep up w demand.
just-in-time orders
this is when you make orders w suppliers for orders you already have. comes exactly when u need it. only making what we need to make
just-in-case orders
bulk buying a suppliers in advance when yo don’t have they amount of orders
stock control charts - maximum stock levels
max levels of stock a business can/wants to hold
stock control charts - minimum stock level required
minimum amount business wants to hold. assuming minimum stock level is 0 = buffer stock
stock control charts - re-order level
trigger point for when stock falls to this level the next order should be made
stock control charts - lead times
amount of time between placing the order and receiving it
