Operations Flashcards
Job Production
Manufacturers produce one product at a time as ordered by the customer
Advantages:
High quality product
Motivated and highly skilled workers
Customised products can be produced
Disadvantages:
Production is slow
Labour costs are high
Example: A custom-made wedding dress
Flow Production
Continuous manufacturing of standardised products, usually on a production line
Advantages:
Low unit costs due to economies of scale
Rapid production
Usually highly automated (capital intensive)
Disadvantages:
Customisation is difficult
Capital equipment can be expensive to purchase
Example: Automobile assembly line
Batch Production
Groups of the same product are produced as a batch (e.g. 1000 Blueberry muffins)
Advantages:
Workers can specialise
Production can take place as the previous ‘batch’ starts running out
Disadvantages:
Requires careful coordination to avoid shortages
Money is tied up in stock
Completed products need to be stored
Example: Pharmaceutical production in batches
Advantages and disadvantages of automation, Robotics and computers
Advantages:
- consistency in production quality, increases satisfaction rates
- decreases labour costs
Disadvantages:
- high set up costs
- lack of flexibility
Advantages and disadvantages of quality control
Definition : inspecting quality of the goods or services to ensure they are a good standard.
Advantages:
- specialist trained individuals are used leaving employees to complete other tasks
- Customers receive a higher quality product
Disadvantages:
- Increases waste
- high cost of inspector wages
Advantages and disadvantages of quality assurance
Definition: Approaches the whole business, including employees, focusing on quality aiming to prevent problems arising.
Advantages:
- less wastage
- Business gains reputation for quality meaning less returns
Disadvantages:
- May disrupt production as workers stop to check quality
- costs the business money to train employees to check quality
Advantages and disadvantages of E-commerce to the business
Advantages:
- More markets accessed by business
- 24/7 access increases sales
Disadvantages:
- Competition increased
- processing of orders and returns is time consuming and costly
Advantages and disadvantages of E- commerce for the customer
Advantages:
- wider range of products available
- convenience
Disadvantages:
- items may not look the same
- late delivery
Advantages and disadvantages of face to face selling
Advantages:
- useful if clients need advice or service from employees
Disadvantages:
- costs to train employees
Advantages and disadvantages of telesales
Advantages:
- increases market
- any customer questions can be asked improving service
Disadvantages:
- training staff can be time consuming and costly
- can decrease reputation
Consumer Law
Consumer rights act :
- goods must fit description
- must be of satisfactory quality
- must be fit for purpose specified
Advantages of meeting consumer law
Advantages:
- improved reviews better reputation
- Avoid high fines
Factors influencing location of a business
- proximity to raw materials (perishable products, carbon footprint reduced)
- proximity to market
- infrastructure
-competition (shows demand in area)
Advantages and disadvantages of procurement
Definition: management of purchasing within a business. Identifying products and suppliers. Negotiations and managing deliveries.
Advantages:
- may get products cheaper by bulk buying, reduced cost per unit
Disadvantages:
- may not have sufficient storage space
Advantages and disadvantages of logistics
Definition: management of the transportation and storage of goods. (Efficient routes, numbers of drivers and items)
Advantages:
- better reputation if managed well
Disadvantages:
- high cost for the business
