Operations Flashcards
Another name for flow production
Mass production
A business that uses flow production is always classed as
Capital intensive
When is a business classed as efficient
When number of inputs used to produce a high amount of output is high
Kaizen
Continuous improvements to working practices
Production
The action of making or manufacturing from components or raw materials
Job production
Where 1 single product is made at a time
Advantages of job production
Motivated workers
Higher prices can be charged
Disadvantages of job production
Skilled labour is expensive
Hard to speed up if demand increases
Flow production
Uses production lines with continuous movements of items through the process
Advantages of flow production
A business can make larger quantities
More complex designs made in shorter times
Disadvantages of flow production
High costs to buy machinery
Low motivation of staff
Lean production
Lean production tries to use as few resources as possible
Just-in-time
A business does not keep stocks of parts in a warehouse
Advantages of just in time
No wasteage
Cost saving
Disadvantages of just in time
The business won’t be able to meet unpredicatble rise demands
Not able to quickly replace damaged
Opposite of just in time
Just in case stock management
Procurement
Process when businesses buy raw materials, component, products, services, and other resources from suppliers to produce their own products and services
Benefits of JIT for stock control
Less stock held
No warehouse costs
Drawbacks of JIT for stock control
Making more frequent purchases
No economies of scale
Direct procurement
Buying raw materials that are used in the making of the product, or delivery of the service
Indirect procurement
Buying maintenance contacts, ICT and other support items
Factors when choosing suppliers
Quality and reliability
Communication
Good service
Logistics
Activity of transporting goods to customers
Supply chain
All the businesses which provide parts of the product until it gets to the consumer
Lead time
Time difference between a business ordering and recieving stock
TQM Total Quality Managment
A management approach to long term success through customer satisfaction
Advantages of TQM
Lower costs
Improved quality so more satisfied customers
Disadvantages of TQM
Might be expensive to train staff
Employees may not like the extra responsibility
Outsourcing examples
Production
Payroll
Franchise
When a small business owner buys the rights to sell the goods and services of a large company
Quality
Providing products that consistently meet customer expectations
Franchisor
The business that allows another business to trade under its name
Which area are franchisors most commonly found
Fast food
Outsourcing
A business decides to use another business to carry out its work process
Post sales service
Services that are carried out by the business after the buyer has paid for the goods
E-commerce
Any form of business activity conducted electronically can be defined as e-commerce
Disadvantages of social media
Can be difficult to measure the return on investment
May damage business reputation if failing to respond to negative feeback
One of the first stages of the sales process
Employees demonstrating excellent product knowledge to potential customers
Which of the following may be a reason a customer may choose to purchase a product in line rather than in store
Increased product variety
Which area of customer service does amazon pride itself
Speed of delivery
1 key method business use to measure customer retention rates
Customer loyalty rates
Advantages to customers providing virtual customer assisstant support
Answer to common questions can be found
