Operations Flashcards
what is the definition of quality
those features of a product or service that allow it to satisfy customers’ requirements
why should a business ensure quality
-to keep customers happy (more sales)
-to avoid customer complaints/returns (reduces waste)
-to gain and maintain a good image in the market place
-to make sure products are up to standard
what are ways to ensure quality
-quality control
-quality assurance
-quality circles
-benchmarking
what is quality control
-this involves the product being checked at the end of the process with unsatisfactory products discarded
-more cost effective than quality assurance as less checks required, only seeks faulty products rather then prevent them (high wastage)
what is quality assurance
-quality checked at every stage-product doesnt move on if doesnt meet criteria
-time consuming to check products regularly.
what is a quality circle
-small groups of managers and staff meet to discuss where improvements can be made in the production process.
-motivates workers to be more productive by including them in the decision making
was is benchmarking
-the business identifies a market leader and copies or improve on their standard of quality
-all work compared to this to ensure a suitable quality
-continuous process of striving to improve which can enhance competitiveness
what are 4 factors to be considered when choosing a supplier and explain them
the cost of the raw materials (how much it is to purchase them)
-costs need to be kept to a minimum to maximise profit
the quality of raw materials (the standards of what the supplier provides)
-good quality raw materials ensure good quality finished product
the quantity of raw materials required (the amount the business needs)
-if the supplier cannot supply the quantity of raw materials required it could mean production needs to halt
how reliable the supplier is (which is if they can be depended on)
-will the supplier deliver the correct quality/quantity on the agreed date
what are the four methods of prodcution
job, batch, flow and capital intensive production
what is job production
job production is where a company produces a single product or small number of products specific to the requirements of customers. The emphasis in on individuality
what is batch production
batch production is groups of similar products are made with slight variation. Products will be similar but different ingredients may be used for different products. (common in baking and house building)
what is flow production
flow production is when a product moves along a production line with parts added at each stage, used to make identical products, capital intensive method.
what is capital intensive production
capital intensive production is when a high percentage of machines and used in production rather than people
what are factors to be considered when choosing a method of production
-having the money to buy the machinery
-the time the product takes to make
-customer demand
-the technology involved
-the finance available
advantages of job production
advantages
-customers get what they want
customer satisfaction, become loyal
-company can charge a high price
increased sales, increase profit
-workers may be more motivated as each job is different
higher productivity
disadvantages of job production
business does not benefit from economies of scale production
-no bulk discount, increase costs
staff need to be highly skilled
-wage costs will be high
delivery times may be long
-dissatisfied customers may go to competitors in the future
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advantages of batch production
batches can be changed to meet customer requirements
-increasing customer satisfaction, increase loyalty
less skilled staff are needed
-lower wage cost
large amounts can be made
-economies of scale gained reduced cost which incraeses profut
machinery can be standardised
-reduced cost, increase profit
disadvantages of batch production
mistakes may lead to loss of whole batch
-loss of profit
machines/workers may sit idle between stages and between each batch unless there is careful planning
-waste of resources
staff may be less motivated as they repeat the same task in batches
-less productive
advantages of flow production
costs are spread over a high level of output
-reduced costs, maximise profit
huge amount can be produced
-cope with large orders, needs of customers can be met, high customer satisfaction
high discounts may be available (bulk buying)
-saves money, more spent on other areas e.g marketing
automation can be used-mass production
-less staff = less costs
disadvantages of flow production
high initial investment needed
-due to high costs business will take a long time to break even and make profit
individual orders cannot be catered for
-customers may want a unique product and feel their needs cannot be met and go to a competitor
equipment may not be suitable for use in another process
-several pieces of machinery will have to be purchased and staff will need to be trained on how to use it, expensive
advantages of capital intensive production
machines can work 24/7, dont need breaks
-more products can be made
machine can produce products of consistent quality
-less wastage cosy, machines rarely make mistakes, less customer mistakes
machines can work faster than humans
-increased, productivity, business more able to cope with customer demand
less human labour required
-reduced wage cost
disadvantages of capital intensive production
have to purchase machinery and have to train staff on how to use
-initialy very costly, reducing profit, may struggle to break even at first
technical faults may occur halting production
-lost production time during breakdown
