unit 3 - business operations Flashcards
what is job production?
-the production of a one-off product made to order.
-high output, low product.
-high costs of production.
-higher prices due to higher skill set used.
-e.g. houses, wedding dresses.
what is flow production?
-the continuous, mass production of a standardised, uniformed product.
-uses a production line.
-high volume of output, low costs of production.
-high initial set up costs.
-lower staff costs.
-e.g. coke, toothpaste.
what is lean production?
-an approach that aims to minimise waste in order to increase efficiency.
-quality assurance.
-kazien- small improvements to cutting waste.
-JIT.
-reduces costs.
what is procurement?
-establishing a relationship with suppliers to buy the raw materials, producer goods and services businesses require.
what is just in case?
-a push stock control systems whereby stock is ordered and stocked.
-buffer stock in case of demand.
-benefit for purchasing EOS.
-high costs in storage and insurance.
-stock may be perishable.
what is just in time?
-a pull stock control system whereby stock is ordered and arrives just in time.
-high reliance on suppliers.
how do businesses choose the supplier?
-price of materials or services.
-quality of materials, services or customer care.
-reliability.
-flexibility.
-reputation and ethical issues.
-payment terms.
-financial security.
supply chain.
-all the businesses which provide parts of the product until it gets to the consumer.
-longer one = more intermediate = more businesses that need to be paid.
- shorter one = easier to manage = less costs.
competitive advantage.
logistics.
-the movement of goods between the processes of a supply chain.
what’s TQM?
-people check and ensure quality at all stages of the manufacture or delivery.
-lower costs as fewer mistakes are made.
-better reputation.
what’s quality control?
-a check performed to see if a completed product meets the required quality standard.
-ensures high quality products are sent.
what is quality assurance?
-checks made to materials, machinery and the product itself during the manufacturing process that insures a high quality outcome.
-reduces costs.
benefits and drawbacks of quality.
-high prices of raw materials mix
-higher staff train in costs.
higher costs of quality inspections.
-increased revenue through improved reputation.
-can set higher prices.
-lower costs in reduced product recalls.
