operations Flashcards
what are some aspects of operations?
- efficiency
- minimal waste
- quality
- distribution + logistics
- working with suppliers
- capacity utilisation
- technology
- providing flexibility
how can you make sure you have good quality service?
- test products (blind taste tests)
- meet customer needs + demands
- everything done to a high standard
- feedback/surveys
- SMART (specific, measurable, achievable, realistic and timely)
what is capacity?
the maximum total level of output or production a business can produce in a given time period
what does capacity depend on?
- the level of demand for a product
- the flexibility of production lines
- seasonality of demand
- implications on a failure to meet demand
- availability of skilled staff
- opportunities for sub-contract or outsourced production
what does sub-contracted mean?
getting a business to create a production on their behalf
what does outsourced mean?
finding a new team to do a job that you used to do tourself
what does efficiency mean?
how successful the production/ distribution of a product is in a given time period/aim
what are the advantages of efficiency?
- efficient use of inputs allows businesses to maximise production and therefore satisfy the needs of more customers
- efficient use of inputs means fewer inputs are needed to produce a given level of output which reduces costs
- lower unit costs enable a business to gain a competitive advantage because a business can lower prices and still maintain the same profit margin on products
- where consumers are desiring high quality, cost saving from efficiency can be used to improve the quality of product
what are the 4 factors of production?
- labour (workers)
- capital (machinery)
- land (space, raw mats)
- enterprise (bringing all 3 together)
what is meant by buffer stock?
holding emergency stock, which is not to be dropped into
what are economies of scale?
saving costs because the business is big and can bulk buy, take risks and have access to new technology
what is lean production?
not having waste, not doing things that don’t need to be done
what are the advantages of JIT?
- less pay for storage
- eliminates waste
- stops over production
what are the disadvantages of JIT?
- doesn’t consider emergencies
- can’t bulk buy
- compromise quality
what is quality control?
a ‘top down approach’ where an external inspector passes judgment before reaching customer - ‘takes defect out’
