Operations Flashcards
Describe JIT production
Just In Time production is an alternative approach to inventory management - limits the amount of inventory held by the business at near zero.
This only works if there is a close relationship between manufacturer and supplier.
Describe the features of JIT production
This is an effective method as saving can be very high.
Nothing is produced unless there is customers demanding the product.
This is done through the marketing department predicting expected demand and figures or the business waits on actual orders before they start production.
Describe the advantages of JIT production
Capital is not tied up in stock, can be used elsewhere.
More responsive to consumer demand.
Reduction in storage costs - space, equipment, staff.
Closer relationship with staff.
Describe the disadvantages of JIT production
Production may be disrupted if supplies do not arrive on time - external factors.
High dependency on the reliability of suppliers.
Increased ordering, admin and delivery costs.
May lose bulk-buying discounts.
May not be able to respond to a sudden increase in demand.
No room for error - no ‘extra’ materials.
Describe capital intensive production
The production process relies more on machinery and equipment instead of human input.
Suitable where the cost of machinery is more cost effective compared to labour (machinery cheaper than wages).
Used where the process is repetitive and requires precise, consistent output.
Describe the advantages of capital intensive production
Can work 24/7.
Standardised quality.
Fewer employees so less wages.
Less skilled workforce required.
Describe the disadvantages of capital intensive production
Machinery/equipment is expensive initially.
Customisation is difficult.
Breakdowns can be expensive and cause production to stop.
Describe what automation is
Automation refers to the production being fully automated. This uses CAM to control fully automated assembly lines.
Describe the advantages of automation
Production line is quicker and can be repeated constantly with no errors.
Accuracy is far greater because there is no human error.
There is no requirement for workers to man the machinery, so this saves money.
The work environment is safer as employees will not need to be in automated work areas while production takes place.
Describe the disadvantages of automation
There is no flexibility as the machinery can only do what it is programmed to do.
More machinery to complete production means more pollution and in some cases, environmentally unfriendly fumes.
It causes unemployment to increase, which has an economic impact on a country.
Machinery breakdowns are expensive.
Describe what mechanisation is
Mechanisation refers to labour and machines working together on the production of a product.
Describe the advantages of mechanisation
Standardisation can be pre-programmed, allowing production to be constant.
Machinery improves the accuracy of work and completes difficult tasks for the worker.
Using labour allows for production issues to be flagged up quickly.
Labour can be trained in becoming expert at operating machinery.
Describe the disadvantages of mechanisation
The initial set up costs are high.
Machinery could breakdown and idle time is a negative factor.
Machinery needs to be updated and upgraded every so often, which can be expensive.
Labour needs to be trained, which is an expense. They will probably also require training whenever machinery is upgraded.
Describe labour intensive production
This is where the business uses a larger proportion of human input than machinery in the production process.
Suitable where the production process requires flexibility and customisability.
Describe the advantages of labour intensive production
Labour is readily available (training required).
No expenses equipment required.
Unique products can be made.
Describe the disadvantages of labour intensive production
Expensive and time-consuming to recruit, select and train.
Training takes time.
Quality can vary (mistakes).
Explain the importance of quality
Poor quality goods can result in customer returns and complaints which can lead to loss of sales and bad reviews.
Extremely low quality can result in products not meeting the safety standards.
High quality products can result in a high quality image and reputations being generated.
Selling high quality products can attract high quality staff.
High quality goods can be sold for premium prices.
Describe quality control
Quality control is where raw materials are inspected or finished goods are inspected to check that they are of an acceptable standard before sale.
Describe the advantages of quality control
Ensures no faulty goods are sent to customers.
Limits the potential for bad reputation as products are checked at the end of production.
Cheap method of ensuring quality.
Describe the disadvantages of quality control
Can create a lot of waste as products are not checked until they are made.
Faulty products are thrown away.
Products have to be re-made from scratch - costs business time and money.
Describe quality assurance
Quality assurance is a method of prevention, where products are checked for quality at different stages in the production process e.g., check raw materials, check machinery, sample work, inspect finished goods.
Describe the advantages of quality assurance
Less wastage which reduces costs.
Easy to identify where faults are occurring on the production line.
Describe the disadvantages of quality assurance
Can slow down production process due to all the checks.
Increases costs as usually a designated quality assurance manager.
Describe benchmarking
Benchmarking is when a business compares its products with the best in the industry.
The business will then aim for these standards with its own products.
Difficult for smaller businesses who may not have the stem technology.
Describe the advantages of benchmarking
If successful, the product will be as good as the ‘best’ on the market.
Saves the business time in developing their own quality approach.
Describe the disadvantages of benchmarking
Can be difficult to gain competitors information.
When the ‘best’ improves, the business will be left behind - still a need to continually improve.
Describe quality circles
Quality circles is when a group of employees meet to discuss problems in the production process and how to solve them.
Involves a wide variety of staff from different levels of the hierarchy.
Suggestions are then passed to management for discussions on implementing them.
Describe advantages of quality circles
Employees will be motivated as they have a say in the decision making.
Management receive well informed suggestions as they are from employees who actually produce the product.
Describe disadvantages of quality circles
Employees meet during the day - production time is lost.
Suggestions are not always feasible therefore time is wasted.
Describe fairtrade
Fairtrade means that materials are sourced in an ethical manner.
The business pays the producers a fair price for their goods.
Treat employees fairly and ensure their welfare and health and safety.
Describe the advantages of fairtrade
Can attract customers who agree with the principles.
Ethical standards ensure the safety and welfare of employees and animals if they are needed for production.
Can improve the organisations reputation.
Awards can be awarded for being ethical.
Describe the disadvantages of fairtrade
Decision making can be time consuming as an ethical option must always be used.
Audits are needed to ensure standards are met and maintained which can be the consuming.
More expensive to operate this way.
Must ensure that the supply chain are also using the ethical option.
Describe Computer Aided Design (CAD)
This is the use of computer software to assist in the creation, modification and analysis of a product during the design process.
Used predominantly in the research and design stage of a new product before it is manufactured.
Describe the advantages of CAD
More accurate than hand drawings which means less human errors.
Faster to modify on the computer than hand drawings.
Images can be saved and edited at a later date.
Images can also be shared by email and viewed in 3-D.
Describe the disadvantages of CAD
Initial cost of software is high which will reduce profits.
Computers need a large amount of processing power to support the software.
Staff need to be trained in how to use the software.
