Operations Flashcards
Methods of Inventory Management (2)
Just in time stock control system
Computerised Inventory Control
Just in time stock control system 4A 4D
A
Capital is not tied up in stock and can be used elsewhere in the organisation
Less costs due to less warehouse
Theft will be reduced as stock is more tightly controlled
Changes in fashion or trends will have less of an impact
D
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
Computerised Inventory Control 3A 3D
A
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
D
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
Production Methods (2)
Labour Intensive
Capital Intensive
Automation – fully automatic using CAM to control robotics
Mechanisation – mixture of humans and machinery eg worker operating sewing machine
Labour Intensive Production 2A 2D
A
No need to purchase expensive equipment
Employees can be creative and use their own initiative
D
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
Automation 3A 3D
A
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
D
Expensive to buy machines and equipment
Individual customer requirements cannot be met
Breakdowns can lead to loss of production hours and wasted materials
Mechanisation 2A 2D
A
Using machinery improves accuracy over purely handmade products as human error is lessened
Using machinery can speed up production
D
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
Factors effecting choice of production method (6)
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
Importance of Quality to organisations and customers (4)
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
Methods of ensuring quality (4)
Quality Circle
A group of employees who state the goods to check the quality
Quality Assurance
Checked the production throughout production
Quality Control
Checking the product after finished production.
Benchmarking.
Best practise is identified from a competitors/market leader and targets are set.
Ethical
A business should act ethically by trying to show moral consideration for other when making decisions.
Using fair trade to act ethically. 3A 2D
A
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
D
Losing fair trade mark can lead to bad publicity
Limited choice of suppliers
Possible increased costs of raw materials
CAD (Computer Aided Design) 3A 3D
A
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
D
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
