Operations Flashcards

1
Q

Stock management is..?

A

The system to control the quality of stock held by a business
meet customer orders
maintain production
avoid waste capital on unused/unwanted stock

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2
Q

What does the maximum stock level show?

A

Most amount of stock held on site

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3
Q

What does the minimum stock level show?

A

Least amount of stock held on site.

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4
Q

What does the contingency zone show?

A

Stock available for unexpected orders

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5
Q

What does the re-order level show?

A

Stock level when an order is sent to the supplier.

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6
Q

What is the re-order quantity?

A

amount of stock ordered to get stock back to minimum

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7
Q

What is lead time?

A

time taken for supplier to deliver an order

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8
Q

Consequences of having too little stock
(Under stocking)

A

-Production slows down/stops
-Orders aren’t fulfilled on time
-Not being able to accept unexpected orders
-Inventory deteriorating- waste
- Increased storage and insurance costs- less profit
-Easier for staff to steal inventory

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9
Q

Factors to consider when choosing a supplier?

A
  • Reliability
    -Location
    -Quality
    -Reputation
    -Cost
    -Ability to meet unexpected requests
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10
Q

Job Production is..?

A

One off unique products
made individual to customers
One product will be started and completed before work on the next product
Usually made by hand
Involves highly skilled workers

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11
Q

Example of Job production is (3)

A

Hairdresser
Dress maker
Cake decorator

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12
Q

Advantages of Job production (4)

A

+Products are fully bespoke
+High prices can be charged
+boosts business’ reputation
+Satisfied customers

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13
Q

Disadvantages of Job production
(4)

A

-Workers are payed more
-lead time is slow
-If a mistake is made the product is lost and cost is higher
-Cannot buy in bulk so then miss out on discounts

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14
Q

Batch Production is..?

A

Making products in small groups
Products within each batch will be identical
Each batch can be different
Products within a batch all go through the same stages of production.

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15
Q

Example of Batch production?

A

A bakery making a range of cakes and breads

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16
Q

Advantages of Batch production? (4)

A

+You can customise each batch
+ Large amounts can be made from economies of sale
+Requires less skilled workers which reduces costs
+Charge less which makes it more affordable

17
Q

Disadvantages of Batch production? (2)

A

-A mistake in a batch means an entire group of products wasted
- Items can only be customised within a batch

18
Q

What is Economies of Sale?

A

The money saved when you buy in bulk

19
Q

Flow Production is..?

A

Mass producing identical products
Products are made on an assembly line
One very specific task is completed at each stage where a different component is added to the product
Tends to be capitol intensive

20
Q

Example of Flow Production?

A

Car manufacturing

21
Q

Advantages of Flow production? (4)

A

+Mass production of identical products
+Very large quantities
+consistency in quality
+High economies of sale

22
Q

Disadvantage of Flow production? (3)

A
  • Products cannot be tailored or customised
    -High setting up cost
    -If machinery breaks product can stop and can have a huge impact on meeting customer orders.
23
Q

What does Labour Intensive mean?

A

People carrying out most of the tasks

24
Q

What does Automisation mean?

A

When all of the production is managed by technology.

25
Q

What does Capitol Intensive mean?

A

When most of the tasks are done by machinery.

26
Q

Some methods to ensure quality? (3)

A

-Raw material
The higher quality of raw material will produce a higher quality finished product

-Employees
Well skilled and motivated staff can help produce high quality products or high quality services

-Technology
The technology of the machinery will affect the quality of the finished product

27
Q

What is Quality Control?

A

Consists of 2 quality inspections.
1. quality of raw materials before production starts
2. end of production checks the finished good

28
Q

Advantage of Quality Control?

A

Poor raw materials do not enter production process
Poor products don’t get made so less complaints are made

29
Q

Disadvantage of Quality Control?

A

Lots of waste as product isn’t checked until after production
Difficult to know where the fault is

30
Q

What is Quality Insurance?

A

Checking quality at every stage of production

31
Q

Advantage of Quality Insurance?

A

Faults are easily found and fixed
little waste

32
Q

Disadvantage of Quality Insurance?

A

Production is slow

33
Q

What is Quality circles?

A

Small group of employees from different levels across a business who meet regularly to discuss how to improve quality of product/service.

34
Q

Advantage of Quality Circles

A

Employees feel valued

34
Q

Disadvantage of Quality Circles

A

Meetings reduce valuable time

34
Q

What is bench marking?

A

Identifies a company with high quality and then changing policies, methods and strategies to be as good as them

35
Q

Advantage of bench marking?

A

Motivational to employees
Provides a clear goal for all employees

35
Q

Disadvantage of Bench marking

A

Stressful for employees to meet high standards
Time consuming
Expensive to change everything

36
Q
A