Unit 3: Operations Flashcards
What tasks does operations
include?
Procuring materials, logistics, production, delivery, quality management.
What is efficiency?
A key aim of operations – maximising the output produced by a business’s inputs.
How is efficiency measured?
Average unit cost = total cost / output
How can efficiency be
improved?
Reduce waste, train workers, invest in new capital (machinery).
What is lean production?
Production methods that aim to increase efficiency by reducing waste. E.g. JIT / TQM
What is just in time
production?
Producing products when they are ordered by customers; holding no buffer stock.
What is just in case
production?
Holding a set quantity of raw materials and finished goods.
What are the pros of just in
time (JIT)?
Lower storage costs, less wastage, ability to customise products.
What are the cons of just in
time (JIT)?
Difficult to deal with changes in demand, reliant on suppliers to delivery on time.
What are the pros of just in
case (JIC)?
Deal with changes in demand, less risk of supplier issues, order in bulk (discounts).
What are the cons of just in
case (JIC)?
Need to hold stock – cost of storage and risk of going out date.
What are the pros of job production?
Ability to customise, can charge a high price, interesting for workers.
What is procurement?
The process of purchasing the materials and capital a business requires.
What are the cons of job production?
Skilled workers = high wages, less efficient than flow, high price reduces customers.
What is flow (mass)
production?
Producing large numbers of standardised products on a constant basis.
What are suppliers?
Organisations that provide the materials, capital and services used in production.
What are logistics?
The movement of raw materials and finished goods down the supply chain.
Factors considered when choosing suppliers.
Price, quality, reliability, reputation, payment terms, flexibility.
List three benefits of supply chain management.
Lower costs, better quality, faster delivery, improved supplier relationships, less waste.
What are the benefits of better quality?
Reputation, loyal customers, less waste, lower costs (fewer returns / complaints).
What is quality?
When a product is fit for purpose and meets customer expectations.
What is quality control?
Checking a product’s quality at the end of the production process?
What is total quality management (TQM)?
All employees are trained to be responsible for monitoring their own quality.
List two benefits of TQM.
Faults are spotted quickly = less waste, motivational for employees.
