Operations Flashcards
Just-in-time production
. Materials are ordered just-in-time
. Products are assembled just-in-time
. Finished goods are produced just-in-time
Nothing produced unless customers demand the product
Advantages of just-in-time production
. Capital is not tied up in stock, can be used elsewhere
. More responsive to consumer demand
. Reduced stock deterioration, wastage theft
. Closer relationship with supplier
.savings are high 
Disadvantages of just-in-time production
. Production may be disrupted of supplies do not arrive on time
. High dependency on the reliability of suppliers
. Increased ordering, admin, delivery costs
. May not be able to respond to sudden increase in demand
. No room for error
. May loose bulk buying discounts

Capital intensive
. Process relies on machinery and equipment inside of human input
. Machinery is cheaper than wages
. Used when work is repetitive, constant output
Advantages of capital intensive
.Can work 24 seven
. Standardised quality
.Fewer employees (wages)
. Less skilled workforce required
Disadvantages of capital intensive
. Machinery/equipment is expensive
. Customisation difficulties
. Breakdowns can be expensive to fix
. Stop of production
Labour intensive production
. Businesses use humans over machine
. Suitable where production process needs customise, bit more flexible
Advantages of labour intensive production
. For creative industries
. Labour is readily available
. No expensive equipment is required
. Unique products
Disadvantages of labour intensive production
. Expensive and time-consuming
. Training takes time
.Quality can really (mistakes)
Batch production
. Groups of identical products are made at one time
. Different ingredients used for different groups
.One batch made, machines washed another one made
Flow production
. Involves identical copies being made along a production line
. Continuous output of identical products 
Automation production
Fully automated. This uses come (computer aided manufacture) to control fully automated assemble lines
Mechanisation production
Refers to labour and machine is working together on the production process
Advantages of automation production
. Accuracy is far greater because there is no human error
. Production time is quicker and can be repeated constantly with no errors

Disadvantages of automation production
. Machinery breakdowns are expensive
. It’s causes unemployment to increase which has an economic impact on the country
Advantages of Mechanisation production
. Using labour allows production issues to be flagged up quicker
. Labour can be trained in become an expert at operating machinery
Disadvantages of mechanisation production
.The initial set up costs are high
.Labour needs to be trained which is an expense. They will probably also require training whenever machinery is updated
How is quality important
. Poor quality can result in customer complaints which can lead to loss in sales and a bad review
. Low quality can lead to products not me and safety standards
.High quality products can attract customers , Good image, good reputation
Advantages of the fair trade activities
. Can attract customers who agree with the principles
. Can improve the organisations reputation
. Can get awarded for being ethnical
Disadvantages of the fair trade activities
. More expensive to operate this way
. Must ensure that the supply chain are also being ethical
. Decision-making can be time-consuming
What is Quality control
We are all materials are inspected or Finnish goods are checked to see if they are of an acceptable standard before sale
What is quality assurance
A method of prevention, where products are checked for quality at different stages in the production light
What are the advantages of quality control
. Insures no faulty goods are sent to customers
. Limits the potential for a bad reputation as products are being doublechecked
. Cheap methods for ensuring quality
Disadvantages of quality control
. Can you create a lot of waste
. Faulty products or thrown away
. Products have to be re-made from scratch cost the business time and money