schedule F Flashcards
external influences affecting operational objectives (6 points)
- costs
- quality (low quality=bad rep)
- speed/flexibility (slow lead time = reputation of being slow)
- dependability (poor quality=bad rep)
- environmental
- added value
influences on labour productivity (4 points)
- extent and quality of fixed assets
- skills, ability and motivation of the workforce
- methods of production
- external factors
influences on unit costs (4 points)
- variable cost of product
- productivity of workers
- efficiency of workers
- fixed costs
low capacity utilisation = (3 points)
- low output
- not using purchased resources
- machines more downtime so less likely to break
high capacity utilisation = (2 points)
- high output
- machines have less downtime so more likely to break
how to fix under utilisation (2 points)
- reduce the number of raw materials purchased
- reduce max capacity
- train employees to be more efficient
- increase demand and sales
how to fix over utilisation (3 points)
- increase maximum capacity
- decrease raw materials
- increase focus on quality rather than quantity
how to increase labour productivity (4 points)
- train workers
- improve working conditions
- reduce staff turnover
- motivate workforce
difficulties with increasing labour productivity (3 points)
- workers may strike due to unfair hours and pay
- labour turnover may increase
- obtaining resources/materials
lean production definition
working practices derived from Japan that focuses on cutting waste whilst maintaining or improving quality
just in time production definition
a technique used to minimise inventory holdings at each stage of the production process helping to minimise costs
advantages of just in time production (4 points)
- saves money
- improves cash flow
- encourages quality as there are no backups
- might motivate workforce
disadvantages of just in time production (3 points)
- no margin for error
- relies on suppliers delivery being on time
- more frequent deliveries mean higher delivery cost
kaizen definition
a system that concentrates on small, but frequent, improvements in every aspect of the production process
key criteria for Kaizen to be effective (4 points)
- all members of workforce will be involved
- employees are encouraged to work in kaizen groups
- improvements can take place at any level of the hierarchy
- requires a highly motivated workforce
advantages of kaizen (4 points)
- increased efficiency
- decreased production time
- increased employee morale
- increased productivity
disadvantages of kaizen (5 points)
- takes time to come up with ideas
- workers may get distracted from job
- costly to think up and create
- some may fail
- employees must be motivated to do it
advantages of labour intensive production (4 points)
- dont need high salary
- less expensive machinery costs
- more flexible work
- continuous improvement
Disadvantages of labour intensive production (6)
- Finding labor is difficult
- workers will take time and money to train
- limited work time
- quality consistency
- potentially high labor turnover
- problems with employee/employer relationship
advantages of capital intensive production (3 points)
- no need for HR
- longer working hours for machines
- quality is standardised
disadvantages of capital intensive production (4 points)
- high maintenance costs
- tech can be outdated soon
- significant initial investment
- potential for loss of competitiveness due to obsolescence
advantages of communication technology (4 points)
- save travel costs
- more environmentally friendly
- leads to lower costs
- improve efficiency
disadvantages of capital intensive production (6 points)
- software may be unreliable
- may be complicated to use
- makes us more inefficient (distractions)
- impersonal
- poorer quality of interactions
- bad for mental well being
advantages of robotics (3 points)
- accurate
- consistant
- fast
disadvantages of robotics (3 points)
- initial costs and maintenance costs
- loss of human touch
- lack of initiative
quality assurance (3 points)
- patterning process into workforce
- focus on process
- quality is built into the product
quality control (4 points)
- inspecting products
- focus on outputs
- targeted at production activities
- defected products are inspected out
total quality management
an attitude the whole business has of ensuring quality
advantages of total quality management (4 points)
- puts customer at heart of production process
- increase motivation as workforce feel more involved and are making decisions
- less wasteful than throwing away defective products
- eliminates cost of inspection
disadvantages of total quality management (2 points)
- requires strong leadership
- everyone must almost be obsessed with high quality control
advantages of outsourcing (4 points)
- access specialist suppliers with greater capabilities and higher quality
- reduce costs if outsourcing supplier can provide at a lower cost
- lets business focus on its core activities
- make operations more flexible
disadvantages of outsourcing (3 points)
- outsourcing supplier might fail to meet quality standards
- potential loss of expertise from the business
- no guarantee that costs will be lower
advantages of producing to order (4 points)
- low inventory costs
- high quality
- bespoke to customer
- can charge premium
disadvantages of producing to order (4 points)
- could mean longer lead times
- higher costs
- capacity to produce to order may be limited
- difficult to handle sudden increase in demand.
advantages of using temporary or part time employees (6 points)
- work on lower wages
- good for seasonal business
- flexibility
- better customer service
- may attract more job opportunities
- higher morale
disadvantages of using temporary or part time employees (5 points)
- not as invested in company
- underemployment
- more complex to manage
- investment in tech and support required to make flexi working available
- loss of capacity if key employees reduced their hours
advantages of buffer stocks (5 points)
- if demand increases you can accommodate
- ensures you dont run out
- better pricing for it
- maintains satisfaction
- problems with lead times can be accommodated
disadvantages of buffer stocks (3 points)
- not compatible with just in time approach
- reduces cash flow
- costs
