Unit 4 Flashcards

1
Q

what is 3D printing and whats its pros and cons

A

ability to make 3D solid objects from a digital design

NHS

pros:
* cheaper, facial recontruction, innovative design
cons:
* very expensive

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2
Q

what are robotics and its pros and cons

A

using machinery to do jobs humans do

Amazon 2012 spent $775 on system

pros:
* more efficient, time saving
cons:
* injury rates increased

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3
Q

what is CAD and whats its pros and cons

A

digital system that allows design to be saved, chnaged and reworked, shows a 3D version of a drawing that can be rotated

Nissan

pros:
* reduce production time, share data instantly, reduce CO2 emissions
cons:
* training costs

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4
Q

what is automated stock control and whats its pros and cons

A

laser scanning of barcode information to trigger orders from suppliers

John lewis - distribution centre in Milton Keyenes

pros:
* reduce stock holding costs, use JIT, save money off staffing
cons:
* training costs, maintenence costs, people lose jobs, expensive

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5
Q

what is electronic data interchange and its pros and cons

A

software provide permenant link between you and suppliers software

Jewson bought EDI

pros:
* save money on certain reosurces (paper), increase sales, lower inventory, better stock turnover
cons:
* expensive, both people need software

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6
Q

what are the factors affecting choice of supplier

A
  • cost - supplier has direct effect to choose how much it will cost company
  • flexibility - supplier able to send product when company wants it
  • product quality - quality of product for company
  • reliability - company knows the supplier will get product when they want it
  • payment terms - decide the way they pay and how long it takes
  • speed and frequency - how quickly product gets to company
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7
Q

what factors can cause levels to fluctuate

A
  • fashion - trends can determine what people wear
  • temperature or weather - depend what people will want to wear
  • marketing activity - control the marketing which makes it easiest to predict
  • competitors actions - depend on what competitors prices are can lead to more sales as can set cheaper price
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8
Q

3 methods to match supply with demand

A
  1. outsourcing
  2. temporary staff
  3. producing to oder
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9
Q

what is outsourcing and whats its pros and cons

A

get another company to produce a product for you, used when demand increases when working at 100% capcity utilisation

pros:
* customers not let down
* temporary cost effective deal with unpredictable spikes
cons:
* lack of consistency
* poor quality
* cost in long run

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10
Q

what is temporary staff and its pros and cons

A

can get extra staff when needed which may be seasonal to help

pros:
* flexibility
* got staff when needed
cons:
* training staff percieved as waste
* untrained workers so may not have the same skills

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11
Q

what is producing to order and whats its pros and cons

A

company will make what you want when you order it, mass customisation is leave the personalisation to the last minute until someone orders

pros:
* no need for storage
* cost efficient
* reduction in waste and stock holding cost
cons:
* long wait times
more expensive for customers as cutomised

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12
Q

what happens when high quality is achieved

A
  • high levels of repeat purchase - longer product life cycle
  • the brand is build and improved
  • premium price can be charged - quality adds value
  • retailers are more likely to stock your product
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13
Q

what are the 3 methods of improving quality

A
  • total quality management (TQM)
  • quality assurance (QA)
  • quality control (QC)
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14
Q

what is TQM and whats its pros and cons

A

total quality management is the continuous process of checking and reducing errors in manafacturing

pros:
* should be clearly rooted in the company culture
* once all staff think about quality, it shows through design to manafacturer and after sale service
cons:
* expensive
* staff sceptcial of managemnt

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15
Q

what is QA and whats its pros and cons

A

quality assurance is system that ensures customers that detailed systems are in place to govern quality at every stage of production

pros:
* make sure system in every stage of production
* customers like reassurance as belive to get higher quality
cons:
* doesnt promise high quality product
* may encourage complatency

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16
Q

What is QC and whats its pros and cons

A

quality control is workers produce ad many units as possible and indpesctors check output meets minimum required standards

pros:
* garantuee no defects leave factory
* little staff training required
cons:
* leave inspection until end may mean poor quality product built
* cant be trusted when based on sampling

17
Q

what are the 7 operational objectives

A
  1. cost
  2. quality
  3. speed
  4. environmental
  5. dependability
  6. added value
  7. flexibility
18
Q

ways to measure quality

A
  • customer satisfaction rating
  • number of complaints recieved
  • number of products returned
  • wastage rates in production
  • punctuality
19
Q

what are the different types of flexibility

A
  1. product - switch production from one product to another
  2. volume - change output in accordance with customer demands
  3. mix - produce a wide range of alternatives versions of a particular good or service
  4. delivery - able to adapt quickly to changes in the timing and volume of deliveries
20
Q

internal influences on operational objectives

A
  • Nature of product - product is the heart of any firm
  • personal characteristics of the operation director - objectives differ based upon the boss
21
Q

external influences on operational objectives

A
  • demand - businesses must predict sales and fluctuation to meet expectations
  • availability of resources - lack of quality or resources can act as major constraint
  • competitors behaviour - majority of firms do not operate alone yet successful firms can afford to be complacent
22
Q

formula of labour productivity

A

output per period/number of employees

23
Q

what is lean production

A

cutting out waste but not reducing quality, avoid waste so reduce costs

24
Q

what are the main methods of lean production

A
  • Time based management - seek to reduce level of time wasted in production process, need flexible production method and trained employees
  • Simultaneous engineering - help firm develop and launch new products quicker, parts of project planned together and done at the same time to reduce time
  • Cell production - team where production processes are split into cells, each cell responsible for one aspect of work
  • just in time (JIT) - aims to ensure input into the production process arrive when it is needed, complex production scheduling, close cooperation with reliable supplier
  • Kaizen - continuous improvement of constantly introducing small incremental changes to improve quality or efficiency
25
what are the pros and cons of JIT
**Pros**: * low stock holding premises which save rent and insurance cost * spend less money as only obtain stock when needed * less likely stock will go out of date or out of fashion **Cons**: * little room for mistakes * production is highly reliant on suppliers and if not delivered on time whole production delayed * need a complex specialist stock system * no spare finished product available to meet unexpected demand
26
define capacity
refers to how much a business is capable of producing over a given period of time with the resources it has at its disposal
27
define capacity utilisation and its formula
refers to the firms output as a percentage of the firms maximum output level ## Footnote current output / maximum possible output x 100
28
how to utilise capacity efficiently
when operating at a higher capacity your fixed costs spread out more over units and therefore unit costs are much lower ## Footnote if only operate at 50% capacity unit cost will be higher impacting on sell price or profits
29
how to get towards full capacity utilisation
* decrease capacity * advertising
30
what is the difference between capital intensive and labour intensive production
* **capital intensive production** is production of methods that require a high level of investment in capital equipment and technology, rather than labour (higher upfront costs, higher productivity and and efficiency) * **labour intensive production** is production methods with high level of human labour and less machinery/equipment (labour costs are a sginificant proportion of total production costs, low labour productivity)
31
define inventory control
the management levels of raw materials, work in progress and finished goods in order to reduce storage costs while still meeting the customers demand
32
impacts of holding too much stock
1. oppotunity cost 2. cause cash flow problems 3. increased costs due to storage 4. increased financial costs 5. increase in stock wasteage
33
impacts of holding insufficient stock
1. cant meet sudden surge in demand so lose orders 2. damage reputation due to poor service 3. production may stop due to lack of available materials so idle workers
34
define lead time
the time between an oder being placed and recieving supplies
35
inventory control diagram