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Business > Unit 4 Operations > Flashcards

Unit 4 Operations Flashcards

1
Q

5 types of production

A 
Job production
Flow
Cell
Batch
Lean
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2
Q

Lean production

A

Streamlined production with minimal waste, to increase efficiency and save costs

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3
Q

3 types of lean production

A

Just in time
Time based
Kaizen

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4
Q

Just in time

A

Ordering stocks only when needed.

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5
Q

Pros cons of JIT (3,3)

A

+low storage costs
+less working capital tied in stock
+no risk of stock becoming obsolete

  • little room for error as minimal stock
  • requires good stock control management
  • no spare stock for unexpected orders
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6
Q

Time based management

A

Aims to reduce time wasted in production process, and also get product on market the fastest.

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7
Q

What does time based management require (3)

A

Flexible production facilities, can swap production from one to another.
Effective communication between managers and staff, so a culture of trust.
Multi-skillled staff-training is key

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8
Q

Pros of time-based management (3)

A

Reduced lead times-time between customer’s placing order and delivery. Therefore stock holding costs fall
Improved customer satisfaction as quicker, creating CA
Can drive innovation by decreasing R&D time

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9
Q

Con of time-based management

A

May prioritise speed over quality.

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10
Q

4 types of waste in lean production

A

Overproduction
Waiting time (idle equipment/people waiting for a process to finish/resources to arrive
Stocks-should be an acceptable buffer, not excessive
Defects

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11
Q

Simultaneous engineering

A

All parts of project planned together, considered simultaneously. Develops products more quickly

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12
Q

Simultaneous engineering benefits (2)

A

Reduced product development lead times so can charge a premium price, can be a CA for first mover advantage just like time based management

Greater sense of involvement for employees

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13
Q

Cell production characteristics (2)

A

Flow split into units, each responsible for a significant part.
Workers are multi skilled for rotation

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14
Q

Pros cons of cell production (4)

A

+enrichment, more responsibility
+improved communication within cell
+multiskilled
+quality improves

  • culture has to encourage trust/participation or can feel overwhelmed, allocation of work must be optimal
  • may not be as efficient as traditional flow
  • needs training
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15
Q

6 operational objectives

A 
Speed/flexibility
Dependability
Quality
Added value
Cost
Environment
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16
Q

Drawbacks of 100% capacity utilisation (4)

A

Cannot meet unexpected orders as cant increase output anymore (eval:can outsource in short run)
No downtime-breakdowns cause delays, no time for equipment maintenance as always used
No margin of error-everything has to be correct, employees suffer, more stress and more mistakes likely
Can lead to excess supply, more working capital tied up

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17
Q

3 costs of capacity

A

Labour
Equipment/machinery
Facilities

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18
Q

Ways to increase capacity

A

Increase facility usage. E.g more days a week
Increase workforce hours (can hire peripheral workers)
Increase machinery
Subcontract work in busy periods
Reduce time spent maintaining equipment

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19
Q

How to fix under utilisation (3)

A

Increase demand, or reduce capacity

Subcontract work for other firms

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20
Q

If a business cant increase demand for their product to increase capacity utilisation, what must it do?

A

Rationalise-reduce capacity by closing part of production

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21
Q

Other ways of improving under-utilisation (3) in short run and long run

A

Short run-reduce working hours e.g through overtime/part time
Long run-making staff redundant, and selling factories/equipment

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22
Q

Short/Long term effects of under-utilisation

A

Short-flexible, can meet unexpected changes in demand

Long-high unit costs make firm uncompetitive

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23
Q

2 main types of technology a business uses

A

Robotic engineering

Computer tech

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24
Q

Robots pros cons (3,2)

A

+quicker and cheaper
+reliable/less wasteful
+handle boring repetitive tasks, less supervision

  • upfront cost
  • demotivate staff
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25
Q

CAD pros cons

A

More accurate designs, less waste e.g amendments made without completely redoing saves time

-initial cost

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26
Q

CAM pros cons

A

+reduced risk of human error
+reliability/consistency
+cheaper than labour, can operate 24/7

  • expensive initially
  • reliant on tech not breaking down
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27
Q

Other developments in IT (5)

A 
3D printing
EPOS
Automated stock control
Emails
Internet
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28
Q

Capital intensive pros cons (3,4)

A

Cheaper than labour in long run
Machinery more precise
Able to work 24/7, less supervision

  • high initial costs
  • inflexible if only suited to in task
  • risk of break down delays
  • employees fear of security
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29
Q

When are capital intensive business’s found (2)

A

In large firms mostly (benefit from technical E.O.S, or where labour costs are high)

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30
Q

Labour intensive pros cons (3,3)

A

+people are flexible, can be retrained (eval:resistance)
+cheaper for small-scale production
+can suggest ways for improvement/solve problems themselves

  • harder to manage
  • less reliable
  • need breaks/holidays
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31
Q

Where is labour intensive approach common

A

Small firms that cannot afford specialist machinery/not worth it. Exception NHS
Or where labour costs are cheap

32
Q

Why is quality important (2)

A

Competition, a rep for quality can be a CA.

Consumers are more knowledgable, demanding and more prepared to complain

33
Q

Two ways of managing quality

A

Quality control and assurance

34
Q

Quality control and the 3 points of inspection

A

Process of inspecting products to ensure they meet standards.

  1. raw materials checked before prod
  2. during process
  3. when finished
35
Q

Cons of quality control (4)

A

Expensive, done by quality inspectors
Often too late
Can be inconsistent
Done by inspectors rather than employees, cannot improve themselves

36
Q

Quality assurance

A

Introducing measures into the production process, so things dont go wrong in the first place. (Preventing errors rather than eliminating faulty goods once made)

37
Q

How quality assurance works and whys it good

A

Self checking, makes everyone’s responsibility to produce good work.

Empowers employees to self check quality of own work can be motivating.

38
Q

What’s needed for quality assurance (2)

A

Training, and workers committed to quality

39
Q

Issue of quality assurance

A

Can result in products only being acceptable , not a high standard

40
Q

Evaluating quality improvement (4)

A

Culture may need change (for assurance)
Cost of training
Does quality matter? E.g monopoly
Competitors quality

41
Q

Total quality management

A

Whole workforce is committed to quality improvements. Every department focuses on quality, to satisfy co workers and customers for work you are passing on to them

42
Q

TQM Pros Cons (3,4)

A

+teamwork as all involved with improving quality
+brand rep for quality
+less faults, less waste

  • takes long
  • can demotivate if quality is in all parts of business
  • expensive-training
  • may need culture change
43
Q

Quality circles

A

Meet at regular intervals to discuss quality issues, and take corrective action

44
Q

Pros cons of quality circles (1,1)

A

Get staff involved with identifying where quality problems arise, motivation

Suggestions can be unrealistic or may not listened too

45
Q

Mass customisation

A

A production process involving mass production techniques, where output is tailored to the requirements of the customer

46
Q

Mass customisation pros cons (6,3)

A

Low unit costs (E.O.S) with personalised product=high added value

Premium price (product differentiation)

Builds brand strength/loyalty

Reduce intermediary as clear coommunications with customer wants

Reduced stock holding of finished goods as produced to order

More stimulating work

Difficult to remain efficient and profitable, customised products can be expensive (cost of CAM and training)

Take long to produce-only acceptable for luxury products

More waste if poor Q.A or Q.C if not to customer needs

47
Q

Producing to order pros cons (2,2)

A

Low stock holding-finished goods sent out-less risk of obsolescence
Customer satisfaction-they get what they want

Capacity to produce to order may be limited
Difficult to handle changes in demand
CPU normally higher-labour intensive+training costs

48
Q

Outsourcing pros cons (2,2)

A

Get work done-meet demand
No need to hire permanent staff, only for occasions

No control on production
Profit margin charged on top

49
Q

Technology to improve efficiency pros cons (2,2)

A

Increase productivity and quality
Reduced waste

Initial cost+maintenence and updating can be expensive+training staff/redundancies
Resist-lower job security or not want to change

50
Q

Issues of holding stock (3)

A

Storage costs
Risk of obsolete
Working capital tied up with an opportunity cost

51
Q

Types of stock

A

Raw materials
Work in progress
Finished goods

52
Q

Flow production stock control-wise

A

They need large stock of raw materials

53
Q

Batch production stock control-wise

A

Creates a lot of work-in progress

54
Q

Job production stock control-wise

A

No finished goods as soley produced to order

55
Q

Cell production stock control-wise

A

Usually use just in time

56
Q

Factors when considering suppliers (6)

A 
Price
Payment terms (credit)
Quality
Capacity
Reliability/dependability
Flexibility
57
Q

Why do suppliers need to be dependable?

A

If not on shelves when they need to be, or quality is poor, it reflects badly on brand

58
Q

Why do suppliers need to be flexible?

A

Meet unexpected orders e.g outsource or temporary workers

59
Q

What is a strategic working relationship?

A

Seeking long term benefits from working together

60
Q

4 ways to build strategic working relationships

A

Linked networks
JIT
Shared costs
Innovation

61
Q

Linked networks

A

Sharing system e.g stock control, allows both companies to view stock level, improve efficiency and cut costs

62
Q

Shared costs

A

Business and supplier can share costs on specialist equipment/systems and store in same place

63
Q

Innovation

A

Working closely with suppliers can share new ideas or money through innovation

64
Q

Strategic supplier vs Non-strategic supplier

A

Strategic-provides goods essential to business
Non-strategic-sells low value supplies e.g office stationary

More time spent choosing strategic

65
Q

How many suppliers should a business pick, and evaluate

A

More cost effective for less suppliers.

However, only 1 supplier can cause problems if they fail, so always worth having an alternative available

66
Q

How to increase efficiency?

A

Lean production

67
Q

Labour productivity

A

Output/workers

68
Q

Ways to increase labour productivity (3)

A

Improve motivation
Training
New technology to increase speed

69
Q

Batch method, and what does it achieve and eval

A

Work split into batches, for specialisation

Poorly managed work flow e.g not optimal size, or one is less productive, can result in lots of works in progress, or completed batches waiting to be used

70
Q

Flow method, and what does it require

A

Similar to batch but work is passed on without waiting for remaining batch, to keep a constant flow.

Task must be equal length for a smooth flow.
Demand must be constant-otherwise excess supply, storage difficulties
Materials delivered on time to be continuous flow
Quality standards=no time for reworked, stops flow

71
Q

What does mass customisation require? (2)

A

Flexible production-be able to customise

High level of automation (CAM)

72
Q

Re-order level

A

Lead time (days) x daily usage +buffer stock level

73
Q

What does buffer stock level depend on (3)

A

Perishability
Usage rate
Lead time (longer=need more buffer)

74
Q

2 ways to match supply to demand

A

Peripheral workers

Outsourcing

75
Q

4 Reasons for peripheral workers

A

Cheaper-hourly rate not full salary

Flexible-only when needed-no waste-improved labour productivity

Increased pool of applicants as now part time

New workers are productive>ready to work

76
Q

4 Reasons against peripheral

A

Part time>less loyal>less committed>productivity down

Training costs

More subordinates>wider span of control-more work-worse communication>labour productivity falls.

Long term not so good

Business (19 decks)

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