Production

Question 1

Opening management

Answer 1

department responsible for transforming input into outputs

Question 2

job production definition

Answer 2

where one-off tailor-made products are made from start to finish

Question 3

flow production definition

Answer 3

continuous movement of items so when one task is finished, next task must start immediately

Question 4

decision of labour definition

Answer 4

Breaking down of job into small, repetitive tasks that can be done by specialised machines / workers

Question 5

Job production advantages

Answer 5

Unique products
Highly skilled workers can do anything in production process
Higher quality products
Flexible 
Tailored to customer needs
Products can be sold higher

Question 6

Job production disadvantages

Answer 6

Labour intensive
Higher wages 
Slower
Higher cost of production 
Dependent on specialist

Question 7

Flow production advantages

Answer 7

Faster production
Cheaper wage for employees
Mass market
More efficient

Question 8

Flow production disadvantages

Answer 8

Products may be faulty
Not flexible 
Interdependent (one fails, everyone fails)
Demotivating (monotonous)
May leas to absence 
Delays cause disruption

Question 9

Economies of scale definition

Answer 9

The more you produce / buy, the better the value per unit

Question 10

Lean production definition

Answer 10

Producing products with minimal waste

Question 11

Efficient definition

Answer 11

How well business uses resources

Question 12

Efficiency factors

Answer 12

How well employees are managed and trained
How good suppliers are
Level of investment in machinery and technology
Production method

Question 13

kaizen definition

Answer 13

ongoing improvement involving everyone
small, gradual change
team working
stay = best resource

Question 14

procurement definition

Answer 14

finding, purchasing or acquiring goods and services

Question 15

stock control facts

Answer 15

Business need stock to operate
Importance and nature varies between businesses
Stock increases choice for customers
Business faces financial opportunity cost when holding onto stock
Different types of stock e.g. raw material, components, work-in-progress

Question 16

Just-in-time

Answer 16

Reduces waste by ordering products when needed
Production to order
No defects
Multi-skilled flexible staff

Question 17

Just-in-case definition

Answer 17

keeps larger amount of stock just in case it’s needed
Buffer stock held
Stock bought in bulk
Production is pushed through process

Question 18

JIT advantages

Answer 18

Lower storage cost
Multi-skilled flexible staff
Reduced waste
Higher liquidity 
Higher quality staff
Low security / insurance costs

Question 19

JIT disadvantages

Answer 19

very dependent on suppliers 
more demanding conditions 
more backup plans
higher admin costs 
no economies of scale when buying supplies

Question 20

JIC advantages

Answer 20

buffer stock available if needed
calmer working environment
benefit from economies of scale
can handle sudden increase in demand

Question 21

JIC disadvantages

Answer 21

Higher storage cost
Less efficient
Lower quality
Stock may go out of date

Question 22

Factors influencing suppliers

Answer 22

Cost
Place
Quality
Reliability 
Reputation 
Speed of delivery 
Flexibility of suppliers
Payment / contract terms

Question 23

logistics definition

Answer 23

science of movement of goods, information and money through production process

Question 24

How suppliers affecting efficiency

Answer 24

flexibility
quality of raw materials lowers defects
cost of raw materials

Question 25

supply chain management

Answer 25

everyone and everything involved in production process from order to delivery Becomes more complex internationally

Question 26

Importance of supply chain management

Answer 26

``` Cost-effective Reduces waste and cost Help uphold business ethics Streamline for fast production times Ensures all goods are high quality and price ```

Question 27

Quality definition

Answer 27

how well product meets customer needs and expectations

Question 28

Importance of quality

Answer 28

``` Positive brand reputation Ensured brand loyalty Competitive advantage Less wastage Charge at higher price ```

Question 29

Bad quality drawbacks

Answer 29

``` Damage to brand reputation Bad PR Reduces sales Reduces customer loyalty Wasteful Loss of market share Poor employee motivation ```

Question 30

Actions in response to quality issues

Answer 30

PR response Compensation Disciplinary actions Recall stock

Question 31

quality management definition

Answer 31

controlling activities so products meet customer standards

Question 32

quality control definition

Answer 32

check/inspect product at end of production process | Fixes defects

Question 33

quality assurance definition

Answer 33

checking quality at each stage of production process | Prevents defects

Question 34

quality standards definition

Answer 34

setting minimum acceptable standard Often legal procedure expectations of customers in terms of minimum product standards

Question 35

BSI kitemark

Answer 35

voluntary stamp of quality

Question 36

CE mark

Answer 36

compulsory stamp of quality used through EU

Question 37

total quality management definition

Answer 37

everyone focuses on placing quality at heart of all actions

Question 38

total quality management advantages

Answer 38

No defect Empowers and motivates staff Higher quality products (Longer term) lowers cost

Question 39

total quality management disadvantages

Answer 39

``` have to train staff more stress for staff slower to begin with possible objection from staff difficult to implement complete reliance on staff ```