operations Flashcards
what is operations?
all the processes involved in turning raw materials into the finished product
what is a supplier?
A company that produces goods and services which another company requires to produce its own product or achieve their aims
what are factors a business will consider when choosing a supplier?
price, quality, quantity, reliability, delivery , credit and location
what is inventory management?
all of the stock and materials a business has.
the operations department must control the inventory levels to ensure that the correct quantity is available at all times to keep production going.
what is inventory control?
inventory levels should be recorded on inventory record cards or held on a computer spreadsheet.
what are the considerations relating to inventory control?
maximum inventory, minimum inventory, reorder level and reorder quantity.
reorder = when business need to reorder from supplier. calculated backed on daily average usage and how long the materials will take to be delivered.
reorder quantity = number of items requested when this order arrives the business should be back to maximum inventory,.
disadvantages of overstocking?
high cost, need lots of space, may go out of date if not used quickly, danger of theft from employees.
under-stocking disadvantages
won’t be able to cope with unexpected orders. upsetting customers
production may stop due to delivery issues
having low stock means ordering more means missing out on bulk discounts.
what are the method of production?
flow production, batch production and job production.
what is flow production?
when an item being made moves continuously along different stages of the production line. it is capital intensive and relies on machines. many items will be at different stages of the production line at once.
what is job production?
where a single product is made to the demands of an individual customer
labor intensive needing people.
not repetitive. one product is made at a time before next is started.
what is batch production?
the production of a group of identical products.
uses labor and machines.
less skilled staff. less motivating as it is repetitive
what is a quality product?
uses high quality materials, finished to a high standard, is reliable, works well, costs more and does what it says on the packaging.
what are the impacts of making a quality product?
customers will be satisfied, meets safety and legal requirements. gains a good reputation and can charge premium prices.
what are different methods a business can use to ensure they make high quality goods?
use high quality raw materials , quality control and quality assurance.
what is a quality raw material / benefits
gives the best chance of making a high quality final product
but can capture the business more money to get the good raw materials
what is quality control / benefits
when a sample of the raw material is tested in the beginning and a sample of the final product and under go a quality control check
any unacceptable products that don’t meet the standard will be discarded as waste
what is quality assurance / benefits
when products are checked throughout the production process at every stage
this helps to identify problems early and will reduce the amount of waste products
workers have the responsibility to check to ensure it is a high standard
what is benchmarking?
looking at a competitor that is considered the best in the the market
copying their techniques and methods.
what is ethics?
ethics is about doing the right thing
businesses must act in a way that customers consider to be fair and honest.
how can businesses be ethical and environmental?
using renewable energy, reduce energy consumption, recycling, reducing packaging and reducing their transport.
how does being ethical impact them?
advantages - positive reputation, increasing customer loyalty, prevents fines and law breaking, can save the business money long term.
disadvantages - recycling takes time and effort, raw materials sourced ethically are more expensive, electric be hiked are more expensive to purchase.
technology in operations - what is CAD used for?
software program, designers and engineers can now produce drawings and plans in 2D and 3D, allows for better planning
technology in operations - what is CAM used for?
manufacturing systems that use machinery and robots. controlled by computers.
reduced risk of human error
allows business to save labor costs and operate 24/7
it is expensive to get
use of software in operations?
word - create manuals on how to check for quality
to write letters to send to suppliers
email - contact supplier to organize deliveries
contact customers to give them info on dispatched orders
