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Business > Unit 3- Operations > Flashcards

Unit 3- Operations Flashcards

1
Q

What is the role of the operations department?

A

To provide the products that the organisation offers

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2
Q

Give examples of Inputs

A

1) Raw Materials
2) Labour
3) Machinery

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3
Q

Give examples of processes

A

1) Production

2) Works in Progress

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4
Q

Give examples of output

A

1) End product ready to be sold

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5
Q

Give examples of factors to consider when choosing a supplier

A

The Cost of the Raw Materials - cost needs to be kept as low as possible

Quality of Raw Materials - without high quality Raw Materials the finished product cannot be high

Quantity of Raw Materials - supplier needs to be able to deliver the correct amount required

Delivery/Lead Time - They place and receive orders in time so production doesn’t stop

Location of Supplier - the distance decides how long raw materials take to be delivered

Reliability and Reputation - an unreliable business might result in production stopping

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6
Q

What is the importance of having inventory management?

A

Methods must be used to ensure that the costs of holding stock are as low as they can be while ensuring stock is available for production when needed.

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7
Q

What are the purposes of Stock Control systems?

A
  • To anticipate and prevent running out of stock before it happens
  • To ensure production will always run interrupted
  • To ensure customer orders are not delayed
  • To avoid overspending on unnecessary storage space
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8
Q

What is:

1) Understocking
2) Overstocking

A

1) Not having enough stock available
- the business may run out of stock and be unable to continue producing
- will not benefit from bulk buying discounts
- increased administration and delivery costs
- orders could be delayed

2) Having too much stock
- more storage space is required
- money is tied up in stock
- additional security and insurance costs
- stock may deteriorate or go out of fashion
- staff may be able to steal easier

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9
Q

What is the re-order level?

A

The level at which stock should be re-ordered, taking account of usage and lead times.

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10
Q

What is re-order quantity?

A

The amount that is ordered to take the stock back up to maximum level.

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11
Q

What is lead time?

A

This is the time taken between an order being placed and stock arriving.

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12
Q

What is maximum stock level?

A

The highest level of stock that should be held.

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13
Q

What is the minimum stock level?

A

The level that stock should not fall below in order to avoid shortages.

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14
Q

What is :

1) Just in Time Inventory Control
2) Centralised Storage
3) Decentralised Storage

A

1) A method of stock control where stock arrives just before it is needed.
They hold small amounts of stock and rely on their suppliers.
Production does not start until a firm order is received.

2) Involves storing inventory in one central location in a large, purpose built warehouse.
3) This involves storing inventory in many locations in smaller warehouses or store rooms.

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15
Q

State the Advantages and Disadvantages of Just in Time control.

A

Advantages

  • No money is tied up in stock
  • No warehouse is required
  • Reduces storage costs as stock is delivered as it is needed
  • Reduces wastage

Disadvantage

  • Organisations can lose out on bulk-buying discounts
  • can result in high admin and delivery costs
  • late deliveries can result in understocking
  • relies heavily on supplies cooperation in delivering stock
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16
Q

State the advantages and disadvantages of centralised storage

A

Advantages

  • warehouses can store a massive amount of stock
  • organisational procedures can be developed for ordering and receiving stock
  • duplication of stock is reduced
  • security is improved

Disadvantages

  • specialist staff are required
  • large amounts of stock are held, which leads to an increase of wastage
  • stock delivered to each division causing delayed
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17
Q

State the advantages and disadvantages of de-centralised storage

A

Advantages

  • smaller amounts of inventory result in no negative consequences of overstocking
  • inventory is always at hand
  • smaller, more local warehouses are more responsive

Disadvantages

  • lack of specialist staff can lead to inventory control being clumsy and inefficient
  • each division may handle inventory differently
  • smaller amounts of inventory can result in negative consequences of understocking
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18
Q

What is Job Production?

Advantages and Disadvantages?

A

It is used to produce unique, one off products.
Products made one at a time.
Each product is finished before making onto the next one.
Products are tailor-made to exact individual customer requirements.

Advantages- higher prices charged, products can match exact customer requirements, increased staff morale.
Disadvantages- highly skilled staff are required, lead times can be lengthy, Materials may need to be ordered for each individual job

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19
Q

What is batch production?

Advantages and Disadvantages?

A

It is making products in small groups.
All products in each group are identical but each batch can be different.
All products in the batch move onto the next stage of production at the same time.

Advantages- materials can be bought in bulk, batches can be adapted to meet customer requirements, costs are lower than job production.
Disadvantages- If a mistake is made it can ruin an entire batch, workers complete more repetitive tasks, Time can be lost through the cleaning and resetting of machinery.

20
Q

What is Flow Production?

Advantages and Disadvantages?

A

It involves identical products being made on an assembly line.
Product is made in stages with different parts being added at each stages.
Continuous output of products.
Tends to be capital-intensive.

Advantages- huge of quantities of products can be made, workers/machinery specialise in the same routine tasks, labour costs are lowered, often capital intensive.
Disadvantages- products can not be adapted to meet customer requirements, work can be repetitive, machinery breaks down the full production line stops.

21
Q

What is capital-intensive production?

Advantages and Disadvantages?

A

It involves producing products that primarily use machinery and equipment.
Made primarily used technology.
It can utilise either automation or mechanisation.

Advantages- machines can work 24/7, quality and accuracy can be standardised and be more consistent, improved productivity, less wastage.
Disadvantages- If machine breaks down production is halted until repairs can be made, maintenance costs are high, restricted output from machinery, replacing employees with machines will demotivate employees.

22
Q

What is Automation?

A

It refers to production being fully automatic.

This involves the use of computer aided manufacturing (CAM) to control fully automated assembly line that use robotics.

Human input is not needed or very little is required.

23
Q

What is mechanisation?

A

It refers to labour and machines working together to produce products.

Production requires a mix of both machinery and labour to operate it.

A traditional example is a mechanism operating a sewing machine in a textile factory.

24
Q

What is labour intensive production?

Advantages and Disadvantages?

A

Involves humans doing most of the work.
It relies on humans rather than machines to create products.
This is most common in job production.

Advantages- humans use initiative and creativity, skilled workers can adapt to what they need to produce, employees are more motivated.
Disadvantages- skilled employees demand higher wages, expensive to recruit skilled employees, at high risk of human error, more waste, limited working hours, inconsistent quality and productivity.

25
Q

Which production methods to use?

A
  • Finance available to the organisation
  • the skills of the current workforce
  • the current technology that the business has.
  • Quantity of goods required to be produced
  • the nature of the product being produced
  • availability and cost of skilled labour
  • the size of the organisation
26
Q

What is quality?

A

It is the actual physical appearance of the product in comparison to others.
It is the products durability and reliability.
It’s value for money.

27
Q

Name the ways to ensure a quality product

A
  • Quality Control
  • Quality circles
  • Benchmarking
  • Quality Inputs
  • Quality Assurance
  • Mystery Shoppers
28
Q

State the advantages and disadvantages of quality control?

A

Advantages

  • It ensures that a faulty or substandard goods are not sent to customers.
  • Limits the potential for a bad reputation due to faulty products.

Disadvantages

  • High levels of waste as faults are only discovered once production is complete.
  • Products have to be rewarded from scratch, costing the business time and money.
29
Q

State the advantages and disadvantages of quality assurance?

A

Advantages

  • Reduces levels of wastage due to the early identification of faults.
  • Easy to identify where faults in the production process line.

Disadvantages
-Can slow down production as product needs to be checked after every stage.

30
Q

State the advantages and disadvantages of quality circles?

A

Advantages

  • increased employee motivation as they get to have a say in decision making
  • management get well informed suggestions from the workers who actually produce the product.

Disadvantages
-Employees meet during paid company time, meaning production time is lost.

31
Q

State the advantages and disadvantages of benchmarking?

A

Advantages

  • Scares the business time and money developing their own approach to ensuring quality
  • If successful, the product will be as good as the best on the market

Disadvantages

  • It is not always easy to gather information about other organisations procedures because these can be closely guarded.
  • What works for one business might not work for others due to internal factors.
32
Q

State the advantages and disadvantages of quality standards?

A

Advantages

  • Awards prove to customers that a product had met an agreed standard of quality.
  • Symbols can be used as a promotional tool to gain a competitive edge.
  • customers will have confidence in purchasing the product and may repeat purchase.

Disadvantages

  • Time consuming process needs to be completed to achieve award
  • Agreed standards need to be maintained at all times
  • if any award is removed it would give a poor reputation.
33
Q

Describe Philanthropy

A

It means to have a love for humanity.
In other words the business will give to those in need, this could be through charitable donations, giving away good or setting up a charitable trust as part of the organisation.

34
Q

Describe Animal Welfare

A

It is the moral considerations of an organisation needs not only refer to how people are treated, incredibly these concerns are also around the treatment and wellbeing of animals.

This could include the conditions that animals are kept in, the way they are handled and animal testing.

35
Q

What is Fairtrade?

State the advantages and disadvantages of this.

A

FairTrade is a global movement that works to ensure better prices, decent working conditions and improved terms of trade for farmers and workers in developing countries.

Advantages- it improves the image of the organisation, it attracts customers who have positive attitudes, higher prices can be charged, may attract high quality staff

Disadvantages- Higher production costs, a more limited choice of suppliers, it can result in disproportionate production of certain items.

36
Q

Describe the environmental issue WASTE

A

Businesses should strive to reduce the amount of waste they produce.

They should aim to dispose of waste in the most environmentally friendly way possible.

It will benefit the environment and potentially their reputation.

To dispose businesses have to decide whether to send the rubbish to landfill, an incinerator or to recycle.

37
Q

What is carbon footprint?

A

It refers to the impact that using fossil fuels, such as oil, has on the environment.

Using alternative sources of renewable energy to power premises will be much more beneficial to the environment and to the reputation of the business.

38
Q

What is SUSTAINABILITY?

State ways in which a business could be sustainable.

A

Being sustainable refers to ensuring that the raw materials used by a business are not being depleted.

  • Replanting raw materials
  • Reusing or recycling materials
  • Using resources responsibly
  • Utilising renewable energies
39
Q

Describe EPOS

A

Is is an electronic point of stock system that are used for stock management.

40
Q

Describe Databases

A

They can be used to record supplier details or stock items.

41
Q

Describe Computer Aided Design

A

It is a system used to design an item before it is manufactured.

It helps to create or modify products prior to production.

42
Q

Describe computer aided manufacturing

A

Mechanisation and automation of production processes has enabled increased productivity, consistency and quality.

43
Q

Describe Internet and email

A

Internet can be used to find and compare suppliers.
The business can also place orders with suppliers through their websites.

Email can be used to confirm orders from customers.

44
Q

Describe GPS

A

GPS tracking allows the operations department to keep track of deliveries.

45
Q

State 4 uses of technology in operations

A 
EPOS
or
DATABASES 
or
COMPUTER AIDED DESIGN 
or 
COMPUTER AIDED MANUFACTURING 
or
INTERNET/EMAIL
or 
GPS
or
ELECTRIC STOCK MANAGEMENT

Business (3 decks)

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