Operations Flashcards
Things to think about when choosing a supplier.
- The cost of the raw materials
- The quality of raw mateials
- Lead time/ delivery time
- The quantity of the raw materials
- The location of the supplier
- Reliability and reputation of the supplier.
- You need to think about how much storage space is available.
Consequences of over stocking
- High costs of storage
- High insurance costs
- High security costs
- The business will have a lot of money tied up in stock
- Stock may go out of fashion meaning it might have to be thrown away
- Stock may deteriorate
Consequences of under stocking
- Business might run out of stock to sell
- Unexpected changes in demand can be hard to deal with
- If orders are delayed, shelves may be left empty
- if customers do not get what they want then they will be likely to go elsewhere.
- High administation costs caused by re ordering stock all the time.
What are the methods of production
There are 3 main methods of production
- Job production
- Batch production
- Flow production
Explain what job production is
Job production is when the product is done one at a time and needs to be finished before another one is started. This is something that can be hand crafted with very little machinery. This could be a hairdresser for example
State the advantages and disadvantages of of job production
Advantages.
- The product can be made to the exact requirments a customer wants
- It will be high quality
- A high price can be charged for a one off product.
- Employees tend to find it rewarding and enjoyable.
Disadvantages
- Product might take a long time to make
- Might be quite expensive to make.
- Highly skilled workers will need to be paid high wages.
Explain what batch production is.
This is when the organisation make a specific number of iderntical products at a time from start to finish. This is done by a mixture of machines and people.
An example of this is a baker or a newspaper company.
State the advantages and disadvantages of batch production
Advantages
- different batches with different colours or features can be produced
- The quantity made in each batch can be varied by how much they think they will sell.
- It is easy to check the quality of each batch after it has been produced
Disadvantages.
- The machine needs to be stopped, cleaned and reset before the next batch can be made.
- If the machine breaks down all production stops.
- Mistakes can ruin a whole batch
- An employees job is to monitor and operate the machine while a batch is being made which would be boring and demotivational.
Explain what flow production is
This is when parts are added the the product along the production lin. The final product will be completed by the time the product has reached the end of the production line. This is also known as line production. Every machine or person has a specific job to do to the product at every stage of the production line. An example of this is a car manufacturer
State the advantages and disadvantages of flow production
Advantages.
- Large amounts of identical products are made.
- Raw materials can be bought in bulk which would save the business money.
- A lot of machinery can be used instead of humans which means they wouldn’t need a break so they can produce the product without stopping.
Disadvantages.
- The individual customer’s requirements cannot be reached because each product is made identical
- If a fault occurs during production this can cause the whole production line to stop.
- Large demand for products is needed because they are in large quantities.
Explain what labour intensive is and give advantages and disadvantages.
This is when the product is made by mainly human effort.
advantages.
- employees can use their initiative and be creative.
- No need to purchase expensive equipment
- One off unique products can be made easily.
Disadvantages
- It is expensive and takes time to recruit select and train employees
- Employees require specialist skills which can take time to get used to.
- The quality can depend on who’s making it.
