Operations Flashcards
What is operations?
Operations is the name given to the process of turning raw materials into finished articles
What are operations activities?
Producing the product, ensuring raw materials are suitable, managing stock/inventory- ensuring stock levels are not too low, ensuring that there is not too much stock, quality control- ensuring final products are of high standards
What is the production process?
Input- employees, equipment, machinery, raw materials process- the making of the product, output- the finished product ready for customers to purchase
What is the purchasing mix?
Factors that a business need to consider before deciding on a supplier
What are the purchasing mix factors to consider?
Quality, price of raw materials, can the supplier provide the business with the quantity needed, how far away is the supplier located, is the supplier reliable, how long does delivery take
What are the types of stock?
Raw materials, work in progress, finished goods
What are the consequences of holding too little inventory?
production may stop, employees paid for doing nothing, customers will receive their orders late- lose customers- poor reputation, lose profit
Consequences of holding too much inventory?
Increased costs- security costs, storage costs, insurance/ electricity costs, security costs, increased chance of theft, increased chance of deterioration, fashions may change and you will be left with unsellable inventory
What is the technology used in the inventory control?
Ordering using the internet e-commerce/email, EPOS/ spreadsheet records usage and new inventory arrivals- can automatically re-order your inventory, can be updated easily as inventory is sold, can tell your inventory levels at any time, environmentally friendly
What is job production?
The production of making a unique item from start to finish
What is batch production?
When a group of products are made, then a group of different but similar products are made
What is flow production?
The product being produced goes through various stages with parts being added at each stage
What are the advantages of job production?
meet customer requirements exactly, employee satisfaction, a high price can be charged
What are the disadvantages of job production?
High labour costs as skilled staff are required, time consuming to make the product, costs not recovered until the job is complete
What are the advantages of batch production?
Can produce various types of products to meet different customers needs, can keep costs low as raw materials can be bought in bulk, labour costs are lower as they do not have to be skilled
What are the disadvantages of batch production?
Time delays in resetting/cleaning equipment, production runs of small batched may be expensive, if machine breaks down whole productions stops, whole batch can be destroyed if there is a problem in a batch
What are the advantages of flow production?
Raw materials can be bought in bulk, standardised products are made, reduced wage bill, computer controlled so can work 24/7 without breaks
What are the disadvantages of flow production?
Customers individual needs are not met, if machines break down whole production stops, large demand required to use this production method
What are the factors influencing the method of production?
Finance available, skilled labour availability, the size/ demand from market, technology availability, product which is being produced, the size of the business/ premises
Give examples of quality methods
quality control, wuality assurance, quality circles, benchmarking
Describe quality control
The process of checking goods once they have been produced
Describe benchmarking
Copying the standards of the market leader
Describe training quality method
training employees to a high standard
Describe raw materials quality method
using high quality raw material to produce a final product of high quality
