Unit 4 - improving operational performance Flashcards
Product innovation and benefits (HOB)
Launching new or improved products into the market.
Benefits:
Higher prices and profitability
Opportunity to build early customer loyalty
Builds brand reputation as innovative company
Process innovation and benefits (RIR)
Finding more effective ways of producing existing products.
Benefits:
Reduced costs
Improved quality
Responsive customer service
Speed of response - operational objectives
Time between customer orders and them receiving the product.
Dependability - operational objectives
For services, consistency and quality.
For products, durability and long-lasting.
Added value - operational objectives
Differentiating a product to sell it at a higher price.
cost per unit formula
Total cost / Total units
Flow production ? Pros and cons ?
Production on an assembly line.
Economies of scale achievable as cost of production is low and selling price.
Work is boring and repetitive.
Job production ? Pros and cons ?
Product made unique to that customer.
High quality products.
Time consuming and high skill workers required.
Capacity utilisation formula
( Actual output / potential output ) x 100
Ways to improve efficiency (LIII)
Lean production
Improve technology
Increasing capacity utilisation
Increasing labour productivity
Just in Time production (always link to Kaisen)
Benefits?
Production of goods to meet customer demand in time, quality and quantity.
Savings on inventory and staff costs.
Forced into quality while being efficient
Reduces unnecessary spending
4 Methods of technology used in businesses
Design Technology
Robotics
Automation
Communication
Labour productivity formulae
Output / units of labour
Labour cost per unit
Cost of labour / units
Difference between quality assurance and quality control.
Quality assurance is ensuring quality standards are met during the production process.
Quality control is ensuring quality standards are met at the end of the production process.
