OPERATIONS MANAGEMENT Flashcards
ecological sustainability
the capacity of the natural environment to meet the needs of future generations without compromising the ability to meet future needs
social sustainability
societies ability to progress in a way that meets social wellbeing needs of current and future generations
economic sustainability
development that meets the economic needs of the current generation using existing resources
job production
- single product at a time
- highly skilled workforce
- labour intensive
advantages of job production
- organisation is simple
- motivated workforce
- produce original and unique products
disadvantages of job production
- high labour costs
- may become costly once demand rises
batch production
- products produced in batches
- appropriate for manufacturing business
- used when demand is higher
advantages of batch production
- each batch can be altered
- skilled workers arent needed
- machinery more standardised
disadvantages of batch production
- machinery could be more complex
- workforce is less motivated
- money will be tied up in work in progress
flow production
- production organised in continuous sequence
- able to produce large quantities
- product is simplified and standardised
- capital intensive
advantages of flow production
- unit costs are reduced
- process is highly automated
- no need to stock large quanitites
disadvantages of flow production
- very high set up costs
- no possibility of producing a wide product range
- breakdowns are costly
lean production
streamlining operations and processes in an attempt to reduce waste and improve efficiency
principles of lean production
- waste minimalisation
- right first time approach
- flexibility of workers
- continuous improvement of processes, quality and efficiency
kaizen
- idea that processes, people and an organisation can always be improved
- small and frequent improvements rather than large change
- helps avoid resistance to change
- focus remains on improving quality and reducting waste
just in time
- inventory management that involves stocks being delivered right when it is needed
- reduces stock holding cost
- involves having very minimal buffer stock
quality control
- inspecting, testing and sampling work
- products are made to specifications
- aims to detect poor quality output
quality assurance
- management process of guaranteeing quality by ensuring that a right first time approach is taken
- concerned with preventing faults rather than catching them
quality circles
- small groups of people who meet and share the responsibility of examining issues
- improves morale of workers as they feel needed
benchmarking
- a business comparting its products, operations and processes to others within the same industry
- market leaders are used as reference points
total quality management
- a process requiring the whole company to commit to achieving its quality standards
includes
- making workers accountable
- monitoring processes
- encouraging teamwork
impacts of lean production and total quality management
- reduces waste
- cuts down on inefficiencies
- boosts quality of products
- company appears socially responsible
quantitative reasons for location choice
- availablity and cost of land
- availability and cost of labour
- proximity to market
- proximity to raw materials
qualitative reasons for location choice
- managerial preferences
- infrastructure
- political stability
- government restrictions
- clustering
