Unit 5. Operations management Flashcards
What is the role of operations management?
- providing the right goods and services to the right quantities and quality level in a cost-effective way.
What are the factors of production?
- Land
- Labour
- Capital
- Enterprise
What is a social sustainability?
Optimizing quality of life for people and next generations.
What is economis sustainability?
Refers to development that meets the economic needs of the present generation without compising the needs of future generations.
What are the production methods?
- job production
- Batch production
- Flow production or mass production
- Cellular manufacturing
What is job production?
Customizing an individual product from start to finish.
- Tailored to meet specific requirements.
- Small scale
What are the advantages of job production?
- High quality
- Highly motivated especialized workers.
- Flexibility in the planning of production process.
- High uniqueness
What are the disadvanatges for job production?
- Time consuming
- Labour intensicve
- Minimal economies of sclae.
- Irreglar production can lead to cas flow problems.
What is batch production?
Simultaneously producing a limited number of identical products at a time.
What are the advantages of batch production?
- Economies of scale
- Specialization increases productivity and quality products.
- Variaety of products can be made.
- Fewer risks than producing single products
What are the disadvantages of batch production?
- Storage costs
- Division of labour caues boredom
- Inflexible
- High initial investment
What is flow/mass/line production?
- Process of manufacturing large amounts of standarized products continuosly
- high level od productivity
- Specialization of labour and machinery is high.
What are the advanatges of flow/mass/line production?
- Capital intensive leads to econmies of scale.
- The production needs no break
- Low defect rate
- Low labour cost.
What are the disadvanatges of flow/mass/line production?
- Monotonous and boring for staff
- Inflexible
- Breakdown cause major delays
- Huge set-up costs
What is cellular manufacturing?
Modern adaptation of assembly line of production where tasks are completed by teams by splitting the production into parts.
What are the advantages of cellular manufacturing?
- Workers have autonomy in decision making.
- Team members have collectively responsability
- Higher levels of motivation from team work and autonomy.
- Workers can cover from absences.
What are the disadvantages of cellular manufacturing?
- Lower output compared to mass and flow production.
- Capital-intemsive
- Costly to set-up and matain
- Intra team conflicts
- Team leaders can be inefficient.
What is labour intensive production method?
- High proportion of labour costs compared to capital costs
- job production.
What is capital intensive production method
- Higher pro portion of capital costs.
- Batch, mass and flow production
What is location?
Refers to the geographical position of the business. The decsion depends on:
- Nature of the business
- Nature of the product
- Nature of human resources.
What are the uantitative reason for specific location of production?
- Availability, sustainability cost of land.
- Availability, quality and cost of labour.
- Proximity to customers.
- Government incentives and limitations.
- E-copmmerce
What are the qualitative reason for an specific location of production?
- Managemnet preferences
- Local knowledge
- Infrastructure
- Political stability
- Government restrictions and regulations
- Ethical issues.
