Operations Flashcards
List the key factors to be considered when a business is choosing a supplier
cost of raw materials- how much it is to purchase them. As costs need to kept to a minimum to maximise profit
quality of raw materials- this is the standard of materials the supplier provided. Good quality raw materials will ensure good quality finished products
Quantity of raw materials required- this is the amount the business needs. If the supplier cannot provided the amount a business need then production will halt and customers will be unsatisfied.
Explain the term ‘Quality Management’
Quality management aims to have zero defects reaching the customer. This is achieved through using Quality Methods, this is putting systems in place to ensure that there are no defects in the product and that when it reaches the customer it is of the highest possible standard.
Describe some quality methods used by organisations
Benchmarking
Trying to match the standard of the quality leader/competitor.
Quality Circles
Small groups of employees meet regularly to discuss how to improve methods of working.
Quality control
Products are inspected at the end of the production process. Any product not meeting the standards of quality set by the business will be sent for rework or discarded.
Quality Assurance- quality is checked at every stage of the production process- if product does not meet criteria then its not moved on
Compare the costs and benefits of using Quality Management systems
Benefits:
Reduces the chance of poor quality products reaching end users.
Improved customer confidence in the product.
Improved image of the organisation and product.
Increases employee pride in their work and in the product.
Encourages teamwork amongst employees.
Costs:
Good quality raw materials may be more expensive.
The costs of training employees may be high.
There may be more wastage as materials are discarded.
Describe the benefits and costs of Training employees
Training helps to ensure that workers perform their job to the standard required by the organisation.
Benefits: Well-trained workers will make less mistakes and accidents are less likely.
Costs: Staff training can be expensive. Skills can take time to build and train. Staff may be out of the workplace when being trained, requiring replacement workers.
Job Production
Job Production is where a company produces a single product or small cumber of products to specific requirement of customers. The emphasis in on individuality.
Adv- customers get what they want, good because they will be satisfied
-workers may be more motivated as each job is different good because productivity will be high
Disad- business does not benefit from economies of scale
-Staff need to be highly skilled this is bad because wage costs will be high
Batch
Groups of similar products are made with slight variations- products will similar but different.
Adv- batches can be changed to meet customer requirement good because increased loyalty
Disad- mistakes may lead to whole batch lost bad because lead to loss of profit
Flow
Product moves along a production line with parts- added at each stage used to make identical products
Adv- huge amount can be made good because keep up with customer demands
Disad- individual orders cannot be catered for this is bad because customers would like unique product so they will go somewhere else
