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.
