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high cost, need lots of space, may go out of date if not used quickly, danger of theft from employees.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.
