operations unit Flashcards
what is an input
the raw materials and resources required to make a product e.g eggs
what is a process
what happens to make the inputs into a finsihed product e.g baking a cake
what is a output
the finished product/ service e.g the finished cake
factors to consider when choosing a supplier
cost of raw materials
location of supplier
lead time
quality of raw materials
reputation and reliability
quantity of raw materials
cost of raw materials
this is the price charged by a supplier to purchase raw materials. A higher cost of raw materials will lead to a higher cost of production. if the company finda a cheaper supllier this could lead to increased profit.
location of supplier
this is where the supplier os located and how far away they are e.g which country/city/ tje further away the supplier is the longer the raw materials will take to arrive. the cost of transportation may be more expensive. its veter to source a supllier that is closer to you so the goods come quicker.
lead time
lead time is the amount of time taken between an order to stock being placed and order being received. if raw materials are not delived on time production may have to stop.
quality of raw materials
the quality of raw materials will have effect on the quality of a business’s finished product. It is important to source supplies of a high standard or it may affect your finished product and therefore your customer satisfaction.Poor quality raw materials can increase wastage in production
reputation and reliability
Suppliers that have a good reputation and can be relied upon to deliver goods on time will get more customers.
If a supplier does not deliver at the agreed time, or with the correct goods, this can affect a business’s ability to produce and deliver their product to the customer.
quanity of raw materials
This is how much raw materials are required. If the supplier can deliver the correct quantity on time. This will allow the business to fulfil customer orders.
disadvantages of overstocking
- Supplies can go out of date or fashion before they can sell all the stock. This means the business may have to do a sale in order to clear the stock
- Risk of theft: if the business has lots of stock they will need to keep it in a warehouse which may get broken into or staff could steal from
- It is expensive to store stock. The business has to pay for a large warehouse as well as having to pay for security systems to keep it safe e.g. CCTV, security guard
- Cash flow problems: if a business buys too much stock they wont have cash available to pay for other expenses
disadvantages of understocking
- Production can stop if the business runs out of supplies, which can lead to poor customer satisfaction
- Miss out on bulk buying discounts
- Increase in delivery and admin costs because they -have to order stock more frequently
- Unexpected customer order cannot be met
inventory control diagram (look in book)
look in book
Maximum inventory level
the largest amount of items to be stored on site
minimum inventory level
the lowest amount of items to be stored on site
re-order level
the amount of stock ordered to restore inventory levels to their maximum point
lead time
is the amount of time taken between ordering stock and the stock being delivered.
buffer stock
Additional backup stock the business has stored in case of an emergency
what is job production
Job production is when one product is made from start to finish before another one is made. this is labour intensive. e.g bridal outfit
what is batch production
Batch production is when a group of identical products are made at one time.
e.g bread, newspapers.
both labour and capital intensive
what is flow production
Flow production is when parts are added to a product as it moves along a production line until the final product is completed. e.g soft drinks, cars. this is capital intensive
disadvantages of job production
- Expensive to hire highly skilled staff or specialist tools
- Slower production rate as one off orders can take months
- Risk of human error can lead to waste
advantages of job production
- Products can be customised for customers one off orders and needs which increases customer satisfaction
- High prices can be charged
- Workers are more motivated as there is a variety of work and skills
advantages of batch
- All products in a batch are identical so there should be no quality differences
- Skilled staff not requires as tasks are broken down to repetitive stages which saves costs
- Batches can be customised to meet customer requirements which increases customer satisfaction
disadvantages of batch
- Repetition of tasks can demotivate staff
- A mistake in one item can cause the whole catch to be wasted
- Workers and machines may be idle between batches if there is a fall in demand
- Machinery must be wiped down and cleaned in between batches which is time consuming
advantages of flow
- Huge quantities can be produced which can make products cheaper for consumers
- Machines can work 24/7 without breaks so faster production
- Reduces human error which leads to fewer complaints and wastage
- Raw materials can be bought in bulk so the business can benefit from economies of scale
disadvantages of flow
-Machinery is expensive and must be maintained
- Individual customer requirements can’t be met so customers may not pay a premium
- Workers find jobs repetitive and are demotivated
- If machines break down production halts which leads to unhappy customers
factors to think of when picking a method of production
- the available finance
- the level of customisation
- the quantity of items to be produced
- the availability of time
what is quality control
Products are inspected at the start and the end of the production process.
advantages of quality control
- Ensures customers don’t get faulty goods
- Limits potential for bad reputation
disadvantages of quality control
- Can create lots of waste as products are not checked until the end of production
- Products have to be reworked from scratch which costs time and money
what is quality assurance
All staff check all items at all stages of the production process for faults. This aims to prevent the faulty product from being produced.
advantages of quality assurance
less errors and wastage as spotted quickly
disadvantages of quality assurance
- Can slow down production as many processes are inspected
- Increase cost of wages (QA manager)
quality circles
A quality circle is when a small group of workers from different levels in the organisation
advantages of quality circles
- Employees involved in quality circles may become more motivated as they feel valued within the company
- Employees who are doing the job often have a better idea on how to improve processes
disadvantages of quality circles
Production time lost when employees meet
what is quality management
Quality management is when the whole business is committed to quality and every product is made perfectly each time
advantages of quality management
- Zero errors so no waste
- Staff are motivated as they are working together to achieve quality
- Products known to be best quality- good reputation
disadvantages of quality management
- Substantial staff training- increase in costs
- Requires commitment of all staff- stricter selection process
-Time consuming to continually review processes
advantages of being ethical
- Businesses can be given awards for being ethical (use this in promotion to attract customers who value ethics)
- This can attract customers who agree with their principles
- Can attract and motivate staff who value the company’s morals
- Gives the business a good reputation
- Can increase awareness of the brand
- paying living wadges
- no child labour
disadvantages of being ethical
- Decision making is much more complex for businesses: they may not be able to just choose the cheapest supplier
- Standards have to be maintained which can put pressure on the business and lead to bad press if not
- Higher costs: labour, sourcing locally
how can a business be environmentally friendly
- Reduce their carbon footprint
- Sustainable raw materials
- Minimise waste
- Minimise packaging
advantages of being environmentally friendly
- Looking after the environment helps sustain the - — - businesses future
- Positive reputation
- Awards can be granted (use in promotion)
- Renewable energies save costs in the long run
disadvantages of being environmentally friendly
- Investment is expensive e.g. Solar panels
- Time consuming to implement new procedures
- Rely on natural environment which may not be sufficient e.g. wind.
advantages of having fair trade mark
- Businesses can be awarded the Fair trade mark to appeal to customers
- Stocking Fair trade goods demonstrates the retailers ethical commitment
- Positive impact on producers of raw materials
disadvantages of having fair trade mark
- Losing a Fair trade mark can ruin a businesses reputation
- Fair trade products often more expensive
- Limited choice of suppliers
what is CAD
is when a computer system is used to create or modify a design e,g a design of a building.
leads to less wastage and a more accurate design process
what is CAM
uses machines that are controlled by computers in the manufacturing process.
advantages of CAM
- this will reduce the risk of human error and ensures consistency across all products produced.
- It allows the business to save on labour costs and operate 24/7.
disadvantages of CAM
CAM systems can be expensive and production is reliant on the technology not breaking down.
froms of ict
databases
internet
e-mail
barcodes and QR codes
robotics
electronic point of sale (EPOS)
Metal detector
what is databases
Store information about supplier details
what internet
Research supplier prices
what is e-mails
Purchase supplies quickly
what is barcodes and QR codes
- Can be used to aid the delivery process.
- Customers and businesses can use QR codes to track packages.
- Can be used to aid stock control as part of an EPOS system.
what is robotics
Can be used in production to reduce labour costs/ dangerous environments
what is electronic point of sale (EPOS)
Used with computerised inventory control to automatically re-order low stock
what is metal detector
A way to ensure no metal has ended up in the final product. Especially used in the food industry.
quality inputs
Using quality raw materials in production e.g. organic food (1)
Hiring highly skilled staff (1)
Using up to date technology in production & maintaining it (1)
Offers the best opportunity for the final product to be good quality
However, these are more expensive.
