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Higher Business Management > Operations > Flashcards

Operations Flashcards

1
Q

Inventory Management System

A

Maximum - Most amount of inventory held
Avoids overstocking

Minimum - Least amount of inventory that should be held
Avoids understocking

Re-order Level - Level which inventory is re-ordered
Avoids running out of inventory

Re-order Quantity - Amount ordered
Ensures quantity ordered isn’t too much or too little

Lead Time - Time taken between order placed & inventory arriving
Allows business to react to rush orders

Buffer Inventory - Extra inventory to be used in emergencies
Ensures production doesn’t stop & sales are continued to be made

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2
Q

Centralised Storage

A

Storing inventory in one central location in a large, purpose-built warehouse

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3
Q

Centralised Storage - Advantages

A

Staff employed to maintain inventory
- Improves speed of inventory handling

Can store massive amounts of inventory
- Benefits from economies of scale

Same procedures for issuing inventory used across organisation
- Improves consistency

Located close to infrastructure
- Easier for suppliers to deliver inventory

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4
Q

Centralised Storage - Disadvantages

A

Inventory delivered to each department
- Causes delays

Specialist staff employed to maintain inventory
- Increases wage costs

Specialist equipment needed
- Expensive to purchase & maintain

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5
Q

JIT

A

Ordering supplies only when required for production

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6
Q

JIT - Advantages

A

No money tied up in inventory
- Improves cash flow

No warehouse required
- Saves costs

Lean production
- No waste

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7
Q

JIT - Disadvantages

A

Late deliveries mean understocking
- Delays in production

Requires good relationship with suppliers
- Takes time to develop & maintain

No room for error in production

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8
Q

IT

A

Used to purchase supplies quickly

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9
Q

EPOS

A

Can automatically re-order depleted inventory

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10
Q

Computerised Systems

A

Can check & find inventory

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11
Q

Automated Systems

A

Can track deliveries

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12
Q

Spreadsheets

A

Accurately & quickly produce production budgets

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13
Q

CAM

A

Used in automated production

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14
Q

CAD

A

Used to design item before manufactured

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15
Q

CAD - Advantages

A

Reduces space needed
- Hard copies of drawings not needed to be stored

Accuracy
- Less human error in drawing measurements

Layouts can be saved to use again
- Saves time

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16
Q

CAD - Disadvantages

A

Less people required to create CAD drawings
- Impact on unemployment

High expenses

Staff need trained in how to use software
- Takes time & money

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17
Q

Automation

A

Production is fully automatic

18
Q

Automation - Advantages

A

Robots can do jobs dangerous for humans

Robots can work 24/7

Human control not needed, less employees, reducing wage costs

Concentration not lost, fewer mistakes made which limits waste

Consistent

19
Q

Automation - Disadvantages

A

Expensive to invest in

Breakdowns can lead to hours of production being lost

Will demotivate employees due to replacement

Lack of creativity

20
Q

Ethical Issues

A

Philanthropy
Animal welfare
Fair trade

21
Q

Ethical Issues - Advantages

A

Awards granted for being ethical

Can attract customers that agree with their principals

22
Q

Ethical Issues - Disadvantages

A

Audits needed
- Time consuming

Complex decision-making

23
Q

Fair Trade

A

Suppliers of raw materials receive a guaranteed & fair price for their goods

24
Q

Fair Trade - Advantages

A

Awarded Fairtrade mark
- Appealing to customers

Demonstrates ethical commitment to customers

25
Q

Fair Trade - Disadvantages

A

Losing Fairtrade mark can result in bad publicity

More expensive

Limited choice of suppliers

26
Q

Environmental Issues

A

Carbon footprint
Sustainable raw materials
Waste

27
Q

Environmental Issues - Advantages

A

Gains a positive reputation

Awards granted for being environmentally friendly

28
Q

Environmental Issues - Disadvantages

A

Investment in measures is expensive

Environmentally friendly procedures rely on natural environment

29
Q

Quality Standards

A

Proves a product has met agreed industry standard

30
Q

Quality Standards - Advantages

A

Awards prove to customers that product has met agreed standard of quality

Symbols used as promo tool to gain competitive edge

Customers have confidence in purchasing product

Higher prices charged as quality is high

31
Q

Quality Standards - Disadvantages

A

Time-consuming processes endured to receive awards

Agreed standards need maintained at all times

If award is removed, business would gain a bad rep

Annual checks by awarding bodies can disrupt production

32
Q

Automation

A

Fully automatic production

A - Can do jobs dangerous for humans
- Don’t take breaks, can work 24/7
- Reduced wages as less staff needed
- Consistent

D - Expensive to set up & maintain
- Breakdowns lead to hours of production lost
- Demotivates employees
- Lack of creativity

33
Q

Mechanisation

A

A - Improves accuracy
- Speeds up production

D - Humans require breaks
- If machinery breaks, business has to repair it

34
Q

Labour-Intensive Production

A

A - Less expensive than capital intensive
- Creative

D - Risk of human error
- Humans require breaks
- Have to be paid overtime

35
Q

Quality Control

A

Inspecting raw materials or finished goods to see if they’re acceptable

A - Ensures faulty goods not sent to customers
- Limits potential for bad rep

D - Creates waste if goods not checked till made
- Products have to be reworked, expensive

36
Q

Quality Assurance

A

Products checked at different stages

A - Less waste
- Easy to identify where problems lie

D - Slows down production
- Increases cost of production

37
Q

Continual Improvement

A

Always attempting to improve quality

A - Stays ahead of competition
- Business can react to external factors

D - High staff-development costs
- Employees feel under pressure to keep improving

38
Q

Quality Circles

A

Employees meeting with managers to discuss problems

A - Employees motivated as they have a say in decision-making
- Management get well-informed suggestions from workers

D - Meet during company time, production time lost

39
Q

Benchmarking

A

Copying quality of finished product

A - Product will be best on market
- Saves time developing own approach to ensuring quality

D - Difficult to gain info on other businesses’ methods
- Only ever as good as benchmark

40
Q

E-mail

A

Used to purchase supplies quickly

41
Q

Internet

A

Used to research supplier prices

Higher Business Management (6 decks)

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