Operations of Business Flashcards
What is the the Purpose of Operations?
To PRODUCE goods and services to a SUITABLE STANDARD as EFFECIENTLY as possible.
Identify and Describe the Different Stages Of Production.
1) INPUT STAGE - Raw materials are Purchased and Stored. This involves having Suitable Suppliers.
2) PROCESS STAGE - The Production Process commences and the resources gathered are used to create new Goods/Services. This involves an ethical method of production.
3) OUTPUT STAGE - The Finished product, ready for consumers to Purchase. This involves Stock Control and Organisation Of Distribution.
What is Job Production?
The Product is made specifically to the customers requirements. Usually made by a skilled craftsman and by hand (Art, Wedding Cake, Designer Fashion etc).
What is Batch Production?
A Group of Identical products made at any one time. All products in the Batch move onto the next stage of Production at the same time. Machinery often reset between batches (Bread, Newspapers, Cans of Soft Drinks etc).
What is Flow Production
Sometimes called Line Production, Products move along Production Lines. Workers have different tasks and add different parts to add to the Product at different stages. Often large machinery is used by workers. (Cars, Computers, Electrical Goods etc)
What are the Advantages and Disadvantages of Job Production?
ADVANTAGES - High quality products,
Can Customise order,
Workers involved in entire production process from start to finish.
DISADVANTAGES - Production Costs likely to be High,
Production Time may be Longer,
Investment in Machinery may be higher as specialist equipment may be needed.
What are the Advantages and Disadvantages of Batch Production?
ADVANTAGES - Allows Flexible production,
Inventories of part finished goods can be Stored and Completed later.
Disadvantages - Making many Small Batches can be Expensive,
If production runs are different there may be Additional Costs and Delays in Preparing Equipment.
What are the Advantages and Disadvantages of Flow Production?
