Operations Flashcards
Discuss JIT (Just In Time stock control) 9 marks
Advantages
Capital is not tied up in stock and can be used elsewhere in the organisation
Reduced storage costs
Theft will be reduced as stock is more tightly controlled
Changes in fashion or trends will have less of an impact
Disadvantages
If stock does not arrive production can stop
May lose out on bulk buying discounts
There will be an increase in delivery costs as more frequent transportation exists
There is a high dependence on suppliers
May increase administration costs due to more ordering
Discuss computerised inventory control 6 marks.
Advantages
Linked to tills through EPOS which updates inventory with each sale
Accurate/constant monitoring of inventory levels allows for automatic re-ordering
Can highlight seasonal changes in demand
Disadvantages
Computerised systems - expensive to install
Train staff to use system which is expensive and time consuming
Crashes/ breakdowns of technology can stop reorders and production
Discuss labour intensive production 5 marks.
Advantages
No need to purchase expensive equipment
Employees can be creative and use their own initiative
Disadvantages
It is expensive and takes time to recruit, select and train new employees
The quality of work can vary depending on who is making it
Humans have to take holidays, have breaks etc which interrupts production time
Discuss automation 7 marks.
Advantages - Automation
Machinery doesn’t need breaks – it can work 24/7
The product being made is of a standardised quality
Robots can do jobs that are dangerous for humans
Save money on salary costs
Disadvantages - Automation
Expensive to buy machines and equipment
Individual customer requirements cannot be met
Breakdowns can lead to loss of production hours and wasted materials
Discuss mechanisation 4 marks.
Advantages - Mechanisation
Using machinery improves accuracy over purely handmade products as human error is lessened
Using machinery can speed up production
Disadvantages - Mechanisation
Machines and equipment cannot be used without humans so are liable to some human error
If machinery breaks down the business has to repair it, leaving workers idle
List 7 factors affecting the choice of production method.
The skills of the workforce – where low skilled labour is employed, a mechanised process may prove more effective
The finance that the organisation has available
The technology available to be used in the production method
The size of the business
The actual product being made
The quantity of the product required for the market
Standard of quality required
List 5 advantages of insuring high quality products.
Poor quality goods leads to increased returns meaning decreased sales
a low quality product may not meet safety standards leading possible danger for the consumer and bad PR or fines for the business if legal requirements have been broken
a reputation for high quality products may attract high quality staff
high quality products can be sold for premium prices
More repeat custom if customers like the quality of the products
Describe 4 methods of ensuring quality.
Quality circle - A group of employees who taste the goods to check the quality
Quality assurance - Quality checked throughout production- method of prevention (preventing faults occurring)
Quality Control - This is a method of inspecting (detecting faults at the end of the process) /checking finished goods at end of production to check they are of an acceptable standard
Benchmarking - Best practice is identified from a competitor/market leader and targets are set
Discuss a quality circle 4 marks.
Advantages
May reduce complaints from customers/retailers if produce is checked thoroughly
May empower employees who are involved, increasing motivation
Disadvantages
Production time lost due to employees meeting
Training of employees to join quality circle
Discuss quality assurance 2 marks.
Mistakes are identified quickly reduces waste/saves money
Can be expensive & slow down production due to the requirement of regular checks
Discuss quality control 2 marks.
Advantages
Ensures faulty goods not sent to customer
Limits potential for bad reputation due to faulty products
Disadvantages
Products have to be re-worked from scratch as not checked until the end wasting resources and costing time and money
Discuss benchmarking 4 marks.
Increases competitiveness
Minimise the risk of the product failing when launched onto market
It can be time consuming and difficult to study and analyse competitors’ techniques
Only ever as good as the benchmark set
Describe how Fairtrade can be used to act ethically
Fair trade is when suppliers of raw materials receive a guaranteed and fair price for their goods. Fair trade also ensures that the employees in the supply chain are treated fairly.
Fairtrade Foundation – Charity based in the UK that works to empower disadvantaged producers in developing countries by tackling injustice in conventional trade.
Discuss Fairtrade 6 marks.
Advantages
Fairtrade certification improves the image of the organisation
Attracts consumers who have positive attitudes towards products which are ethically made
Higher prices can be charged for Fairtrade products
Disadvantages
Losing fair trade mark can lead to bad publicity
Limited choice of suppliers
Possible increased costs
Discuss using CAD 7 marks.
Advantages - CAD
Increases productivity by lowering the amount of error that will be made during the design
Easy to edit: When you are using computer-aided design software, it will be much easier to make any changes/alterations because you can modify the drawings easily
Increased accuracy in comparison to manual drawings
Disadvantages - CAD
Work may be lost or halted due to breakdown of computers or interrupted internet access
Work could be hacked meaning confidential materials could be leaked to competitors
Staff need training on CAD which can be expensive due to experienced trainers
Expensive to install
