Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

business > operations > Flashcards

operations Flashcards

1
Q

what is inventory management

A

the sourcing and storage of raw material or supplies of finished goods for resale

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

consequences of overstocking (5)

A
  • suppliers could go out of date if they are stored for too long
  • suppliers could go out of fashion before they are used
  • too many suppliers leaves a risk of theft by staff, customers or thieves
  • the business may have to pay for stockholding costs such as insurance and security
  • the opportunity cost of money being tied up in inventory which could be better used elsewhere in the business
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

consequences of under stocking (4)

A
  • the business may run out of inventory and be unable to continue production or carry on selling
  • the business may not benefit from bulk buy discounts due to making smaller orders
  • may be no goods to sell resulting in a bad reputation and customers not returning
  • may be an increase in delivery costs since many smaller deliveries have to be made
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Features of inventory management control systems (6)

A
  • maximum/economic inventory level
  • minimum inventory level
  • re-order level
  • re-order quantity
  • lead time
  • buffer inventory
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

maximum inventory level description and justification

A
  • this is the most amount of inventory that should be held
  • avoid consequences of over stocking
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

minimum inventory level description and justification

A
  • this is the least amount of inventory that should be held
  • avoids consequences of under stocking
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

re-order level description and justification

A
  • level when inventory is re ordered
  • avoids running out of inventory
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

re order quantity description and justification

A
  • amount that is ordered
  • ensures quantity ordered is not too much or too little
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

lead time description and justification

A
  • time taken between an order being made and inventory arriving
  • as short as lead time as possible allows a businesses to react to rush orders
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

buffer inventory description and justification

A
  • this is the extra inventory below the agreed minimum to be used in emergencies
  • this ensures that production doesn’t stop and sales continue to be made
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

just in time production advantages (5)

A
  • allows production to flow smooth as there is no wastage as all inventory is used for production
  • no money is tied up in inventory improving cash flow and working capital
  • no warehouse is required saving costs
  • the business is more responsive to changing external factors
  • no theft
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

just in time production disadvantages (4)

A
  • if deliveries were late then the business willi face the negative consequences of under stocking
  • requires excellent relationships with suppliers to work effectively
  • relies on good infrastructure between business and suppliers
  • no room for error in production
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Centralised storage advantages (4)

A

-specialist staff are employed to maintain inventory improving speed and security
- massive amount of inventory can be stored benefiting from economies of scale
- may be cheaper to store inventory in one large warehouse
- easier for suppliers to deliver inventory as centralised warehouses are often located close to infrastructure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what is centralised storage

A

storing inventory in one location in a large warehouse

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what is just in time production

A

when supplies are only ordered when they are required for production or when an order is placed by a customer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

centralised storage disadvantages (4)

A
  • inventory has to be delivered to each department causing delays
  • specialist staff need to be employed to maintain inventory which increases costs
  • specialist equipment needs to be purchased and maintained
  • JIT is more efficient
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what is decentralised storage

A

when inventory is stored in many smaller warehouses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

decentralised storage advantages (3)

A
  • inventory is close at hand when needed when needed
  • more responses to local needs
  • smaller inventories result in no negative consequences or overstocking
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

decentralised structure disadvantages (6)

A
  • can lead to wastage or theft of inventory as security is not as good
  • inventory control can lead to clumsiness or inefficiency due to staff shortage
  • each department may handle inventory differently leading to inconsistencies
  • smaller amount of inventory results in negative consequences of under-stocking
  • harder for suppliers as they have to make lots of smaller deliveries
  • maybe be expensive to rent out many different and smaller warehouse’s.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

computerised inventory advantages (5)

A
  • inventory balances are automatically updated
  • can be linked to sales so it updates inventory when an item is sold
  • accurate and constant allowing for automatic re ordering
  • can highlight seasonal shifts
  • staff who want to steal will be less likely as they know they are monitored closely
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

computerised inventory disadvantages (3)

A
  • costs a lot to install and maintain
  • money and time must be invested to train staff to operate the system efficiently
  • cashes or breakdowns can hold up re orders and production
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

what is the role of a logistics manager (7)

A
  • planning inventory using production and sales budget
  • organising resources needed such as staff
  • commanding staff
  • co-ordinating supply chain, channels and methods of distribution so deliveries are made on time
  • delegate inventory to different warehouses
  • control quality, quantity, cost and efficiency of movement and storage of inventory
  • motivating staff
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

what are sales budgets

A
  • providing a target amount of sales so staff can aim towards this and increase productivity
  • motivates sales staff to reach targets
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

what are production budgets

A
  • plan production so there are enough goods to meet demand
  • allow enough raw material to be purchased so there is no under stocking
  • allows for not to many goods to be purchased so there is no over stocking
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

what is capital intense production

A

producing products using machinery or equipment. can use automation (only computer aided manufacturing) or mechanisation(labour and machines working together)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

automation advantages (5)

A
  • robots produce products exactly the same every time improving consistency
  • does not loose concentration so fewer mistakes are made limiting waste
  • robots can do jobs that are too dangerous for humans
  • robots don’t take breaks or have sick leave so can work 24/7
  • fewer employees needed reducing wage costs
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

automation disadvantages (4)

A
  • huge investment needed to automate a production line
  • breakdowns can have a massive impact production and materials
  • demotivate retained employees
  • lack of creativity or personality in products produced
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

mechanisation advantages (3)

A
  • using machinery improves accuracy over handmade products
  • machinery can speed up production
  • creativity exists
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Mechanisation disadvantages (4)

A
  • machines and equipment cant be used without humans so can be human error
  • production can’t be 24/7 as humans require breaks and holidays
  • if machinery breaks down the business has to repair it
  • staff has to be taught how to use machinery costing time and money
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

what is labour intensive production

A

when humans do most of the work

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

labour intensive advantages (3)

A
  • less expensive than capital intensive
  • humans can use creativity which lacks from an automated system
  • employees are motivated a they are not being replaced by machines
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

labour intensive disadvantages (2)

A
  • the business is at high risk of human error resulting in waste and faulty products
  • humans need breaks and holidays limiting production time
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

what is quality control

A

inspecting raw materials pr finished goods to check they are of standard quality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

quality control advantages (2)

A
  • ensures faulty goods are not sen tot customers
  • limits potential for a bad reputation due to faulty production
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

quality control disadvantages (2)

A
  • can create lots of waste as goods may not be checked until finished meaning they may have to be thrown out if faulty
  • products have to reworked from scratch costing the business time and money
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

What is quality assurance

A

Products are checked throughout each stage of production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

quality assurance advantages (2)

A
  • less wastage decreasing costs spent on raw materials
  • easy to indentify where the faults in the production process are
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

quality assurance disadvantages (2)

A
  • can slow production as many processes must be inspected
  • can increase costs of production as workers have to paid to inspect
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

what is continual improvement in terms of quality

A

when an organisation should always aim to improve quality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

continual improvement advantages (2)

A
  • business stays ahead of competition
  • business can react to external changes
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

continual improvement disadvantages (2)

A
  • high staff development costs
  • employees may feel under pressure to keep improving
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

what are quality circles

A

Involves a group of employees meeting with a manager to discuss problems in production process and how to solve them

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

quality circles advantages (2)

A
  • employees willi be motivated as they have a say in decision making
  • managers will get well informed suggestions from producers
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

quality circles disadvantages (2)

A
  • employees meet during paid time which means production time is lost
  • employees have to be trained to join a circle costing the business more time and money
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

quality standards and symbols advantages (4)

A
  • awards prove to customers that a product has met an agreed standard of quality
  • symbols can be used as a promotional tool
  • customer willi have confidence purchasing the product which may result in repeat purchase
  • higher prices can be charged as the products are of high quality
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

quality standards and symbols disadvantage (4)

A
  • its a time consuming process to achieve this award
  • agreed standards need to be maintained at all times
  • if a reward is removed it would give the company a bad reputation
  • annual checks can disrupt production
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

Quality management advantages (4)

A
  • should resulting zero errors which reduces waste
  • staff are motivated as they are constantly told to improve quality
  • products willi become important for being of highest quality increasing customer confidence and market share
  • teamwork is established as everyone works together to improve
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

what is quality management

A

takes in a variety of methods to improve and manage quality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

quality management disadvantages (2)

A
  • a lot of staff training is required so no mistakes are made which increases costs and reduces work time
  • process must be monitored to ensure everyone is sticking to the policies which can be time consuming
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

mystery shoppers advantages (4)

A
  • no bias is shown as the shopper is not connected to the business
  • valuable feedback is received
  • a mystery shopper can’t share their poor experience with others
  • mystery shopper can suggest improvements
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

mystery shopper disadvantages (3)

A
  • staff may be hostile if they see a mystery shopper evaluating them and may take feedback personally
  • the feedback may not be representative of the business as a whole as its only for one day, one branch and one customer service assistant
  • businesses have to pay for mystery shoppers increasing costs
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

what is benchmarking

A

copying the quality of a finished product and the process used to achieve it used by the market leader

53
Q

what is benchmarking

A

copying the quality of a finished product and the process used to achieve it used by the market leader

54
Q

benchmarking advantages (2)

A
  • if successful the product willi be as good as the best on the market
  • saves business time developing their own approach
55
Q

benchmarking disadvantages (2)

A
  • can be difficult to gain other companies information and quality methods
  • willi only ever be as good as the market leader. the market leader may improve leaving the organisation behind. the business willi never be the market leader
56
Q

advantages of being ethical (2)

A
  • awards can be grated for being ethical which can be used for promotional purposes
  • can attract customers and quality staff who agree with the ethical principles
57
Q

disadvantages if being ethical (2)

A
  • checks must be made to ensure standards are met and maintained resulting in time loss
  • decision making may be more complicated and time consuming as solutions may not be ethical
58
Q

what is philanthropy

A

giving to those in need through donations or giving away goods

59
Q

fair trade advantages (3)

A
  • businesses are awarded the fair trade mark on their products which can appeal to customers
  • stocking fair trade goods shows retailers ethical commitment to its customers
  • business that are fair trade have a positive impact on the producers of the raw material
60
Q

fair trade disadvantages (3)

A
  • losing fair trade mark after gaining one willi result in bad publicity
  • fair trade products are often more expensive
  • the businesses choice of supplier is limited
61
Q

advantages of being environmentally friendly (4)

A
  • the organisation willi play a part in looking after the environment which may sustain activities in the future
  • having a positive effect on the environment willi ensure the organisation gains a positive reputation
  • awards can be granted fro being environmentally friendly which can be used for promotion
  • renewable energies can save costs in the long run such as fuels do not need to be paid for
62
Q

disadvantages of being environmentally friendly(3)

A
  • investment in environmentally friendly measures may be expensive in the short term such as solar panels
  • procedures may have to adapted to be environmentally friendly which can be time consuming
  • most environmentally friendly procedures rely on the environment which may not be sufficient such as lack of wind or sun
63
Q

what is a carbon footprint

A

it refers to the impact of the amount of fossil fuels usage has on the environment

64
Q

what are the reasons for a workforce change (7)

A
  • to meet demand for existing product
  • to develop new products
  • to enter new markets
  • to respond to flexible working arrangements
  • response to falling sales or demand for a product
  • if employees retire to have to take a sick leave
  • if the business needs new employees with higher skill
65
Q

internal advertising methods (3)

A
  • company newsletter
  • staff noticeboard
  • internal email to staff
66
Q

external advertising methods (3)

A
  • job centre
  • newspaper adverts
  • recruitment agencies
67
Q

internal supply of staff advantages (5)

A
  • the vacancy can be filled fast
  • the employee knows the organisation which saves induction training costs and time
  • employee is already trusted to do a good job
  • money is saved from external advertisement costs
  • employees willi be motivated as they know there is chances for promotion
68
Q

internal supply of staff disadvantages (4)

A
  • limited pool is reached out too so company may not be able to hire the nest person for the job
  • organisation misses out on bringing in a fresh new ideas and skills
  • employees may be jealous of others being promoted and not them
  • the person promoted willi leave a job open
69
Q

external supply of staff advantages (3)

A
  • fresh new ideas and skills are brought to the organisation
  • wider pool of candidates to choose from
  • avoids jealousy and resentment between employees
70
Q

external supply of staff disadvantages (4)

A
  • induction training willi have to be carried out which takes up time and money
  • as there is many candidates it can result in a longer procedure to choose suitable applicants
  • as company doesn’t know the candidate which could mean they may be untrustworthy or unsuitable for the job
  • staff may be demotivated as they may feel there is no chance for promotion
71
Q

advantages of interviews (2)

A
  • can find out how applicants react under pressure
  • give an indication on the applicants personality
72
Q

disadvantages of interviews (2)

A
  • applicant may lie and say all the right things but may not be suitable fro the job
  • interviews can be very stressful which could lead to businesses missing out on quality employees who felt too much pressure
73
Q

Disadvantages of testing (3)

A
  • time consuming to carry out
  • may put applicants-under too much pressure
  • candidates may be more prepared on the day then when they get the job
74
Q

training staff advantages (4)

A

-improved product quality or service as employees have better skills
- motivational for staff as they are more confident in what they are doing and feel the business is interested in developing them
- can be used to train staff if there isa change in the workplace such as technology
- high quality staff may be attracted by a good training program

75
Q

training disadvantages (4)

A
  • can be costly for organisation to train
  • leads to loss in production time
  • staff may leave after being trained
  • staff may want higher wages when they become better skilled
76
Q

motivation methods (9)

A
  • fair pay
  • payment methods
  • incentive
  • permentant contracts
  • good working conditions
  • appraisal
  • recognition
  • development opportunities
  • empowerment
77
Q

how does fair pay motivate staff

A

employees want to satisfy their needs and wants. if they believe they are not receiving enough their motivation may decrease meaning productivity is harmed

78
Q

how does commission motivate staff

A

salespeople are given a percentage of the sales made motivating them to sell more

79
Q

how does performance related pay motivate staff

A

it is an extra payment on top of the basic wage meeting agreed targets

80
Q

how does piece rate motivate staff

A

employees are paid per item produced which encourages production however quality may drop

81
Q

how does overtime payments motivate staff

A

employees are paid for extra hours spent working encouraging extra production to meet demand

82
Q

how to incentive motivate staff

A

holidays discounts or free private healthcare may be offered motivating staff

83
Q

how do Permanent contracts motivate staff

A

employees must feel they have job security so organisations should avoid giving temporary contracts as they make employees feel less secure

84
Q

how do good working conditions motivate staff

A

employees must feel safe whilst working. a good working condition may not motivate staff but bad working conditions may demotivate staff. if new equipment is introduced staff may be motivated for a short while

85
Q

how does staff appraisal motivate staff

A

regular meetings with a manger to tell employees what they are doing well and setting targets to aim can motivate staff

86
Q

how does recognition motivate staff.

A

employees looking. to progress in their career respond well to recognition

87
Q

how do development opportunities motivate staff

A

Employees want to develop skill to be up for promotion and improve status

88
Q

how does empowerment motivate staff

A

staff are given responsibility to make their own decisions giving them a sense of job satisfaction

89
Q

what is an autocratic leadership style

A

when control is kept by leaders. manager tell employees what to do

90
Q

advantages of an autocratic leadership style (3)

A
  • clear expectations of what needs to be done
  • decisions are made quickly
  • works well if managers are skilled and knowledgeable
91
Q

Disadvantages of an autocratic leadership style (2)

A
  • no opportunity for promotion so staff may be demotivated
  • lack of creativity in decision making
92
Q

what is a democratic leadership style

A

managers let employees have a say in decision making

93
Q

advantages of a democratic leadership style (2)

A
  • employees feel motivated due to empowerment
  • creativity and complex problem solving can occur
94
Q

Disadvantages of a democratic leadership style (2)

A
  • mistakes can be made if workers are not skilled enough to decision make
  • some employees may be less productive then they would be under an autocratic leader
95
Q

what is a laissez faire leadership style

A

managers do not issue instructions to employees or supervise them. employees have control

96
Q

advantages of a laissez faire leadership style (2)

A
  • employees are motived due to empowerment
  • relaxed work environment
97
Q

disadvantages of a laissez faire leadership style (2)

A
  • aims may not be met
  • can only work in highly skilled professional environments where workers can self motivate
98
Q

what does the equality act cover (9)

A

Age
Disability
Gender
Race
Marital status
Pregnancy or maternity
Religion or beliefs
Sexual orientation
Gender reassignment

99
Q

equality act impacts on businesses (4)

A
  • Any update in the equality act legislation would mean that company would have to update its recruitment polices (1). This would be time consuming to update (1).
  • The company may also have to provide additional training which may reduce productivity whilst training takes place. (1)
  • When advertising a position all companies must be careful of the wording used in any job adverts to ensure there is no discrimination (1)
  • To provide equal opportunities all organisations may have to adapt the workplace to allow employees to access the building and carry out their job (1). This will lead to additional costs for installing ramps, lifts and doors (1)
100
Q

virtual learning advantages (2)

A
  • material can be accessed at home, while traveling or at any time of the day
  • saves money as material doesn’t need to be provided
101
Q

virtual learning disadvantages (2)

A
  • some employees may feel more reassured face to face
  • can be costly to set up
102
Q

what is the health and safety at work act? what year was it made

A

established in 1974
ensures employees are healthy and safe at work

103
Q

Scenarios affecting leadership (6)

A
  • the task - difficult tasks require direction from a manager so autocratic
  • time available - little time means less discussion so an autocratic leadership is needed
  • skills of staff - highly skilled need less supervision so laissez faire
  • motivation of staff - highly motivated staff can be trusted so need little supervision
  • group size - large groups need more direction
  • finance available - lack of finance means autocratic is best
104
Q

what is Maslows hierarchy of needs

A

set of 5 needs. people strat from the bottom and work their way up

105
Q

level one of maslows needs

A

basic food, water, shelter and sleep

106
Q

level 2 of maslows needs

A

safety from harm at work at home financially and physically

107
Q

level 3 of maslows needs

A

to have social needs like friendships and family

108
Q

level 4 of maslows needs

A

feel worthy and respected

109
Q

level 5 of maslows needs

A

have a status in life

110
Q

what is 360 degree of appraisal

A

managers interview fellow employees about the employee being assessed

111
Q

advantages of 360 appraisal (2)

A
  • compete profile of the employee is gained
  • different opinions can be gathered
112
Q

disadvantages of 360 appraisal (2)

A
  • some employees may find it difficult to criticise their colleagues
  • time can limit responses from employees
113
Q

appraisals advantages (4)

A
  • positive feedback is given which can motivate staff
  • targets are set for employees motivating them
  • pay rises can be awarded after successful appraisal
  • employees can be up for promotion increasing loyalty to the organisation
114
Q

appraisals disadvantages (4)

A
  • negative feedback may be given demotivating staff
  • unrealistic targets may be set demotivating staff
  • employee may be stressed
  • time consuming to carry out loss in work time
115
Q

what is peer appraisal

A

when the interview is carried out by a peer in the same level as the employee

116
Q

peer appraisal advantages (2)

A
  • employees can relax more
  • relationships with managers are not harmed
117
Q

peer appraisal disadvantages (2)

A
  • relationship between peers may make interview not affective
  • bias could wrongly highlight employ for payrise or promotion
118
Q

different ways of training staff (3)

A
  • corporate training schemes
  • graduate training schemes
  • work based qualifications
119
Q

2 advantages and disadvantages of corporate training schemes (intense programs equipting staff with high skill)

A
  • benefit from highly skilled workers
  • staff are motivated
  • work time is lost
  • organisation may. have to pay staff more after training
120
Q

advantages of graduate training schemes (2)

A
  • can be offered high salaries
  • raw talent can be moulded into the needs of the organisation
121
Q

Disadvantages of graduate training schemes

A
  • need higher wages than staff without degrees
  • schemes have to reteach the real business world
122
Q

advantages of apprenticeship (2)

A
  • employees can contribute to the organisation whilst training
  • paid during training time so motivational
123
Q

disadvantages of apprenticeships (2)

A
  • staff may leave for a better job after training
  • costly to train staff
124
Q

selection methods(4)

A
  • CV’s
  • interviews
  • testing
  • assessment centres
125
Q

use of technology in operations (4)

A
  • purchase supplies
  • research suppliers
  • check and find inventory
  • track deliveries
126
Q

sustainable raw materials methods(4)

A
  • replaniting trees used
  • reuse or recycling products and packaging
  • sustainable recourses
  • renewable energy
127
Q

how to make packaging better(3)

A
  • reusable
  • recyclable
  • biodegradable
128
Q

reasons for production choices (5)

A
  • amount of goods received
  • skills of workforce
  • cost of labour
  • finance available
  • technology available

business (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions