Operations Flashcards
What is job?
When a single product is made one job at a time. This will usually happen where products are unique and made to customers exact requirements. (Wedding dresses, cakes, designer clothing)
What are the three main types of production?
Job
Batch
Flow
Advantages of Job production?
customer can specify exact requirements – this can increase their satisfaction.
Organisation – higher prices can be charged due to personalisation.
Workers – motivational as they are involved in the entire production process from start to finish and see end result.
Disadvantages to job production?
Production costs are likely to be higher – highly skilled staff required and specialist tools and equipment may be needed.
Production time – maybe longer since individual requirements of the job have to be met.
Cant always buy raw material in bulk and might miss out on cost savings from bulk buying.
What is batch production?
A group of identical products are made at the same time. One operation is carried out on a number of units of the product at exactly the same time. All units are passed from one stage of the production process to the next at the same time.
What are advantages of using batch production?
Reduce costs – less need for skilled workers
Many similar items can be produced quickly – raw materials can be bought in bulk therefore saving money.
Changes can be made between batches
What are the disadvantages of using batch production?
Switching to another batch takes time – some pieces of equipment may have to be cleaned between batches.
Workers can be demotivated – workers get bored doing the same job everyday all day.
One mistake can lead to the scrapping of the whole batch and there may be differences between batches.
What is flow production?
Production is a continuous process products flow from one process on to the next and parts added to each stage. This type of production often uses a production line e.g. cars
What are advantages of using flow production?
orgs can get discounts for buying in bulk – large amount of identical products are made.
Time taken to manufacture is much shorter than other methods due to tasks been carried out mostly by machines – machines can work for longer and do not need breaks.
What are the disadvantages of using flow production?
Standardisation – products cannot be tailored to meet the needs of an individual consumer.
Staff can become demotivated due to work being repetitive.
One part of the assembly line breaks down the whole production process can be affected.
Why is quality important?
Ensures the business meet safety standards and legal requirements.
Allows the business to build up a loyal customer base – consumers are happy with the quality are likely to return.
It will mean fewer items being returned and fewer complaints from customers.
Satisfied customers are likely to tell others and the organisation will get a good reputation.
What is quality-control?
This is when products are checked at the very end of the manufacturing process (completed products). If problems are found the product is scrapped (lots of wastage). The business bears the full cost of production.
Individuals are not encouraged to take responsibility for the quality of their work.
What is quality assurance?
This is when products are checked at every stage in the manufacturing process. Less wastage as the product is checked at every stage and employees have ownership and recognition of work.
What are quality symbols?
Quality symbols/standards are identified with letters and numbers and a date. The letters BS refers to Britain EN refers to Europe and ISO is across the world - International.
What are quality circles?
This involves small groups of workers who are involved in the production process meeting at regular intervals to discuss where improvements can be made in the production process.
What is benchmarking?
Benchmarking uses a standard set by an established quality leader to discover best methods of production. The best method then becomes a quality standard which other organisations follow.
What should be taken into consideration when choosing a supplier?
Cost – the price charged by the supplier
Quality – how good the raw materials are
Lead time – how long it will take to receive the raw materials from when the order is placed.
Quantity – how much of the raw materials are required.
Location – where the supplier is based, how far away it is
Delivery costs – cost of transporting raw materials.
Reputation and reliability – what other people/businesses have experienced and what do you think of a supplier.
Why must organisations have a method for controlling stock?
If an organisation does not have enough raw materials to produce goods or enough stock to deliver to customers that will mean that employees and machines will not be able to work this will cost money.
What does computerised stock control allow business to do?
Print list showing the balance of each item in stock
Automatically re-Order stock when it reaches a certain level
Record details of suppliers and their delivery times
Update prices of stock quickly and easily
Maximum stock level
Greatest amount of an item that will be stored
Minimum stock level
The lowest amount of an item allowed to fall before production would have to stop
Re order level
Level that stock can fall to before a new batch of raw materials will be re ordered
Re order quantity
Amount of stock required to return stock levels to maximum stock level
Lead time
Time between ordering and receiving stock
Problems related to overstocking
Stock could deteriorate or become obsolete depending on the type of stock and how long it is held for
A great deal of cash is tied up - stock costs money
A great deal of physical space may be used up if too much stock is held.
Problems with understocking
If not enough stock, production may be halted, machinery may be idle and sales lost
Org wont be able to cope with unexpected orders - result in loss of custom
Reputation of org suffer if customers aren’t satisfied
What is just in time stock control?
Stocks arrive just before the they are needed for production. Goods are not produced until the business has an order from a customer.
Advantage of JIT?
Costs are cut by reducing amount of stocks held by business
Huge storage space
Stock doesn’t deteriorate
Disadvantages of JIT?
Production may be disrupted if stock doesn’t arrive on time
Org may order in small amounts - dont benefit from buying in bulk
Org may incur charges for regular ordering - admin costs transport costs
What are two types of capital intensive?
Automation - If when a product is made using only machinery
Mechanisation - when a mixture of human labour and machines are used
What is capital intensive?
- refers to the equipment/machinery/vehicles used to make a product
- usually high automated process
- usually associated with flow production
- used to make standard products
- Large quantities can be produced
Advantages of capital intensive?
- Production can run 24/7, machines don’t need breaks
- Few low skilled workers used, low wage costs
Disadvantages of capital intensive?
- Expensive to buy machines and equipment
- Breakdowns mean production may come to a complete halt and may incur huge costs
What is Labour Intensive?
- Refers to the extensive use of people to make a product
- Used to make one-off products
- Need very skilled labour force
- Usually associated with job production
- Usually only small quantities produced
Advantages of Labour intensive?
-Employees use their own initiative can think for themselves
-High Customer satisfaction, one off and unique products
are made.
Disadvantages of Labour intensive?
- The quality of work can vary between employees
- It takes time to recruit, select and train new employees
Factors to consider when choosing method of production?
- The quantity of the product required: products which consumers use in great no. are likely to produced using batch/flow, one off unique = job
- The resources available to the business e.g machinery, staff, premises: A business may not have specialist access to specialist machines = flow/batch or specialist staff = job
- The finance available to the business: Bus must always operate within budget, may not be able to produce products in a particular way lack of finance
- The technology available: continuous developments in technology will influence the method of production chosen
- The actual product being made: Different products will be produced in different ways e.g. a customised product will be more complicated than a mass produced tube of toothpaste
Examples of distribution methods?
Road
Rail
Air
Sea
Advantages of distribution methods?
Road - Allows for door to door delivery
Rail - Can cater for large products
Air - Used when speed is essential: perishable items
Sea - Can cater for large products
Disadvantages of distribution methods?
Road - Difficult to transport large goods
Rail - There isn’t a train station in every location
Air - Products still need to be transported to/from airports
Sea - Products still need to be transported to/from ports
What is a common objective for many orgs in private, public and third sectors?
Social responsibility - means the org is aiming to operate in a fair way that does not harm others or their environment.
What is ethics and what is law?
ethics are about what is right and wrong
laws are about what is lawful and unlawful
How can organisations achieve their social responsibility objective?
Recycling - re use things instead of throwing away: having recycling policy shows that company has thought about how p/s it produces impacts environment
Minimising Packaging - only use necessary amount of packaging to protect product and maintain quality: also replace packaging with enviro friendly materials that can be recycled by consumer.
Fairtrade - means ensuring suppliers treated fairly and get fair price for raw materials provide company with: company may only work with suppliers who meet their ethics policy.
Benefits of having an ethical policy?
Company will:
- develop good rep, customers will feel they can trust the company and more likely to buy from them
- attract more customers achieves more sales, which in turn will increase profit
- reduced wastage and packaging should reduce production costs and generate income from recycling activities
Costs of having an ethical policy?
Company will:
- restrict the number of suppliers available to trade, some suppliers may not meet the strict ethical standards set by company
- takes time to for example recycle materials as they need to be sorted into different categories
- Staff need to be trained to ensure the company is complying with environmental regulations
