operations Flashcards
Supplier Factor - Quantity
Any potential supplier of raw materials must be able to meet the quantities required.
Supplier Factor - Lead time
Time taken from supplies being ordered to them being delivered to the business.
Supplier Factor - Discounts
Discounts should be given by the supplier such as bulk buying.
Supplier Factor - Location
If the supplier is not close by there could be expensive delivery charges.
Supplier Factor - Quality
Consideration should be given to the quality of the raw materials on offer from each supplier. Is the quality of a satisfactory standard? It must meet business standards.
job production?
job production is where a single product is custom-made to a customer’s own specification. production is started only when a customer makes an order. a customer built house, wedding cakes and wedding dresses are made by using job production.
advantages of job production?
high prices can usually be charged so high profits can be earned, workers are more motivated as there is likely to be a variety of work and skills required
disadvantages of job production?
Expensive to hire highly skilled staff, a wide variety of expensive tools and equipment and machines may be required
batch production?
batch production is the production of groups of similar products. no item in a group goes on to the next stage until all are ready. machinery must be cleaned between each batch. examples of batch production include car tyres, bakery items such as bread and light bulbs. for example, Heinz may produce a batch of soup, and all 20,000 cans of soup will be started in production, finished and distributed to customers at the same time.
advantages of batch production?
each batch can be altered to suit customer requirements if necessary, machinery and robots can be used to complete a lot of the production which may reduce costs in the long run
disadvantages of batch production?
staff may be less motivated as they repeat the same task - batch after batch, if there is a problem with one item in the batch the whole batch may have to be wasted
flow production?
flow production is a process in which the production of items moves continuously from one operation to the next. each part of the process contributes to the eventual production of the final product. usually machinery or robots are used to reduce labour costs. products are produced to a standard specification which mean quality is always the same. examples would include the production of cars, soft drinks and TV’s.
advantages of flow production?
machinery can work 24/7, huge quantities of goods can be produced
disadvantages of flow production?
very expensive to purchase machinery and equipment, individual customer requirements cannot be met
what are some factors to consider before choosing a method of production?
the actual product being made, the finance available, the resources available for example staff or machinery, the way the business will make sure the product is of a high quality