Operations Flashcards
What is the process of operations
Input the raw materials
Making of the good
The finished good
InPut. Process. Output
What factors should be considered when choosing a supplier
Cost
Quantity
Quality
Lead time
What is the maximum stock level in the stock management system
At this level the highest amount of stock that can be stored is available
What is the minimum stock level in the stock management system
The lowest amount of stock that should be stored I’d the stock falls below this point there is a danger that production will stop as they do not have enough raw materials to continue
What is the re order level in the stock management system
More stock needs to be ordered once we reach this level
What is re order quantity in the stock management system
The quantity that needs to be ordered to bring the organisation to maximum stock level
What is lead time in the stock management system
The time that passes between ordering the stock and it arriving
Describe the just in time method of stock management
Method of stock control where the raw materials that you require arrive just in time for them to be used
What is the advantages of using the stock control system just in time try to name at least 4
- There is less cash tied up In stock
- Less storage and warehousing which means lower expenses
- Wastage should be kept to a minimum as only stock required is ordered
- it improves cash flow
- PESTEC factors have minimal impact
- stock does not deteriorate
- stock will be more tightly controlled
What is the disadvantages of using the stock control system just in time name at least 4
- Reliable suppliers are required to get the stock to you in time otherwise production cannot continue
- More journeys are made between supplier and the organisation affecting the environment and higher delivery costs
- Bulk buying discounts may be lost
- late deliveries can hold up the production process
- organisation may struggle to cope with unexpected increase in demand
- stock may have to go straight into production without having being checked
- more orders of stock will have to be placed
An effective stock management system will;
Ensure stock is readily available when needed
Ensure there is enough raw materials for production to continue
Avoid delays to customer orders
Describe the job production method of production
where a single product is made to customer specification made from start to finish before another product is made ( a wedding cake for example)
What is the advantages of using job production
- Customer gets exactly what they want which leads to a higher customer satisfaction rate
- As it is a unique product higher prices can be charged
- High employee motivation as they see product from start to finish and their work is varied
- specification can be changed even if the production has started
What is the disadvantages of using the production. Method job production
- Highly skilled employees required to make the product which means high expenses in high wages
- Expensive to buy specialist equipment
- Savings from bulk buying is lost
- it can take a long time to create the product so production is slow
What is batch production
production of groups of similar products not one item in the batch goes on to the next stage until the whole batch is complete and ready.
What is the advantages of using batch production
- reduces the need for highly skilled costly staff
- standard machinery can be used for much of the production which saves costs
- manufacturers can make different batches to suit the different requirements of customers meaning high levels of customer satisfaction are achieved
- cheaper production as bulk buying discounts can be gained
- less worker skill is required saving wage costs
- machinery works longer without breaks
What is the disadvantage of using batch production
- production time is lost through cleaning and resetting the machinery
- a small mistake within the batch can result in the who,e batch having to be scrapped or reworked
- machinery and employees can be idle between stages meaning low productivity
- worker motivation is low and they are doing repetitive tasks
- if a fault occurs the whole production stops
What is flow production
where items move continuously along a production line from one operation to another at each stage of the production a new part is added and machinery and workers have specific tasks to do at each stage
What is the advantage of using flow production
- costs are spread over a large number of goods and therefore the cost unit falls
- large quantities of goods are produced
- bulk buying of raw materials discounts are gained
- the process is heavily merchandised or automated which saves labour costs
- the quality of the output is consistent as it is early checked at each stage to ensure the quality of the product before moving to the next stage.
What is the disadvantages of flow production
- employees carry out boring, low , unskilled tasks meaning that their motivation is poor
- machinery and robots are able to break down so preventing production from continuing
- individual requirements cannot be met
What is centralised warehousing
Stock stored in one location
What is decentralised warehousing
Stock stored in multiple locations
What is the advantages of centralised warehousing
- security is improved and maintained if stock is held in one location
- space required for stock is reduced as there is no requirement for a space in each area
- fewer small purchases are necessary
- reduces the chance of duplication of resources
- agreed procedures can be set up for the whole organisation
- it is easier to implement procedures
- specialist staff are used to control ordering, issuing and purchasing of stock
- agreed procedure can be set up for the whole organisation
What is the disadvantages of centralised warehousing
- can be time consuming to receive stock when needed in departments as stock is being handled twice before it reaches the department
- if large amounts are stored then there is an increased chance of wastage
- specialised requirements of the departments are harder to maintain and provide for
- there is potential for staff to waste time going to collect stock if the centralised area is different from the work area
- it is expensive to set up and maintain a central stock area
What is the advantages of de centralised warehousing
- it is easier for staff to access the stock rather than having to travel to one centralised area
- there is less of a chance of stock going to waste or deteriorating as it is easier to keep track of what is coming in and going out. people at the decentralised areas will be aware of what stock is required in each of their own area
What is the disadvantages of de centralised warehousing
- storage space is required in different locations which will result in increased expenses
- it is more difficult to maintain security across a number of locations compared to just one which will also be more expensive
What is the advantage of using labour ( human) intensive
Allows employees to use their own initiative while working
There is a steady supply or workers available
What is the disadvantage of using labour intensive
Recruiting employees is a costly business
Quality of work can vary by employee
What is the advantage of using capital (machines ) intensive
Machines are able to work 24/7
Quality of work is consistent
What is the disadvantage of using capital intensive
Breakdown of machinery can result in costly repairs
Employees can become bored with repitiive tasks
What is quality assurance (QA)
Quality is tested at each stage of the production process
Which minimises wastage of products as arrows are quickly spotted and recitified
This process can be time consuming
What is quality control (QC)
Quality is tested at the end of the production process
Which is less time consuming than QA as the product is only being tested at the end however errors are only discovered at rhetoric end of the production orders therefore wastage may be high
Control=complete
What is quality standards
When an organisation meets a certain criteria they are awarded a quality control such as the British kite mark or the red tractor stamp which improves the image of the organisation and allows for higher prices to be charged
How can ICT be used in the management of operations
EPOS can be used to keep track of the stock levels
Supplier prices can be checked online
Automated systems can buy used to ack deliveries
CAM such as robots can be used in production
What are quality circles
Employees from different departments throughout the organisation meet to discuss quality issues
Motivates staff involved
Members of staff involved are from all levels of the hierarchy
What is mystery shopping
Used in readin and service industries
Mystery shoppers visit shops and make a purchase
Feedback is provided on the services that they received as staff are not aware of who the mystery shoppers are this allows for an accurate representation of the service received
What is benchmarking
Involves measuring yourself against other products or services similar to your own
Usually matches with the industry’ or market leader
Allows for an organisation to see where they need to be
What ways van be used to reduced environmental issues caused by organisations
Minimise wastage Recycle Minimise packaging Reduce emissions and pollution Fair trade Renewable energy
describe the physical distribution of goods ROAD method of transport
A- Refrigeration vehicles can be used to transport perishable goods
-it is an easy way to get directly to the customers location
-as road networks improve it is a quick and easy method
D- however it it is relatively cheap although the cost of fuel is rising which makes the overall cost more expensive
-they may experience delays in traffic, road works, be affected by the weather which all stops productivity
-the legislation restricts the amount of hours that drivers can be on the roads
- it is damaging to the environment
describe the physical distribution of goods RAIL method of transport
A- it is ideal for heavy products
-there is fewer restrictions on how long the goods can be on the move
D-however it requires specialist freight terminals to load the products so there will have to be an alternative method of transport used anyway
- it is not suitable for rural areas with no rail network
describe the physical distribution of goods AIR method of transport
A- it is perfect for long distances
-it is a faster method of moving product overseas
- ideal for urgent or perishable goods
D- it is more expensive than on the road
-requires transport to and from the airport
describe the physical distribution of goods SEA method of transport
A- ideal for heavy goods
-more environmentally friendly
-relatively inexpensive method
D- slower method than others
what is the time factor of job production
lengthy process due to high level of craftsmanship and one product has to be completed before the second can be started
what is the time factor of batch production
products are produced at the same time so more can be produced
there may be delays between changing batches
production of different batches has to be co-ordinated which may be a difficult and time consuming task
what is the time factor of flow production
start up costs are high
automation becomes easier
what is the objectives of job production
higher level of customer satisfaction
what are the costs of job production
high costs of production due to high level of skill
what are the costs of batch production
can buy in bulk so lower production costs
standardised machinery can be expensive and it is expensive start up costs
some scope for specialisation which could reduce costs
e.g. workers can concentrate on one stage in the process more specialist machinery can be utilised
what are the type of sales in flow production
suitable for mass consumption , mass production requires mass consumption
what are stakeholders in job production
orders can be designed specifically for the customer
staff are motivated because they see the product from start to finish
what are stakeholders in batch production
individual batches can be designed to meet the requirements of particular customers
what are stakeholders in flow production
standardised product which may not meet the specific requirements of all customers and working on the line tends to be repetitive and boring for staff
what are the advantages for an organisation having good quality
- highly skilled staff -good customer service -customer satisfaction
- staff retention
- raw materials
- up-to-date machinery-standardised process-more produced
- consistency of the product - less wastage
- good reputation
describe the advantages and disadvantages of quality inputs to an organisation
- using high quality raw materials will lead to a quality product or service
- highly skilled staff will result in good customer services
- using up-to-date machinery will help standardise product quality
- should result in less customer complaints
- should result in repeat sales
however
- may mean higher purchasing costs of raw materials
- expense of the inputs
- can result in high training staff costs
what is quality management
- constant improvement philosophy
- zero errors are tolerated therefore cuts down on wastage
- all staff are committed to producing a perfect product
- quality circles can be used to discuss and make the processes more efficient
- motivated staff will ensure a high quality product/service
- the organisation focuses on customer satisfaction
what quality measures can be used other than quality management
- Quality control (QC)
- Quality Assurance (QA)
- Benchmarking
- quality standards/marks
- quality circles
what are the advantages and disadvantages of an organisation having a quality standard/mark
- level of quality is guaranteed to the customer
- can be used as a marketing tool
- can allow for a higher price to be charged
- raises awareness of the organisation
however
- it is a time consuming process to go through
- and expensive
- rigourous checks and paperwork must be kept
why should an organisation be ethical and environmental
the law is about being lawful and unlawful working ethically means doing the right thing and acting a way which is both fair and honest to all stakeholders. working legally is complying with the law
what is the advantages of an organisation being ethical
improved reputation -can attract customers
awards can be used for promotional purposes
can attract investors
may be more motivational for staff who are passionate about ethics
what is the disadvantages of an organisation being ethical
lengthy audits are needed to ensure standards are met
decision making can also be time consuming and complex
cost of sourcing ethical resources may be high
high costs of staff training
how can a business be more environmentally friendly
- reducing the impact of fossil fuels
- ensuring materials don’t run out
- packaging
- waste
