Operations management Flashcards
Production of goods and services
Explain production
It is effective management of resources in producing goods and services
Explain what does the operations department do?
(i)Use the resources in a cost-effective and efficient manner
(ii)Manage inventory effectively
(iii)Produce the required output to meet customer demand
Explain productivity
It is a measure of the efficiency of input used in the production process over a period of time
Explain the formula of productivity
Quantity of output/Quatity of input
Explain the labour productivity
Output(over a given time of period)/Number of employees
Explain lean production
It refers to the various techniques a firm can adopt to reduce wastage and increase efficiency/productivity
Ways of increasing productivity
(i)Improving labour skill by training
(ii)introducing automation
(iii)Improve employees motivation
Explain the type of wastage
(i)Overproduction
(ii)Waiting
(iii)Transporation
Explain the benefit of no wastage
(i)Less storage of raw material
(ii)Quicker production of good and service
(iii)No need to repair faulty good
Explain how do we implement lean production?
Kaizen:it’s a Japanese term meaning ‘continous improvement’
Explain the aim of kaizen
To increase efficiency and reduce wastage
Explain the benefits of kaizen
(i)Increased productivity
(ii)Reduced amount of space needed for production
(iii)Improved factory layout
Just in time inventory control
His technique eliminate the need to hold any kind of inventory by ensuring that supplies arrive just in time they are needed for production
Explain the benefit of just in time inventory control
(i)Reduces cost of holding inventory
(ii)Warehouse is not needed
(iii)Finished good are immediately sold
Explain cell production
The production line is divided into separate,self-contained units
