5.1 / 5.2 Flashcards
(18 cards)
What is operations management?
the process of transforming inputs into outputs to achieve business objectives.
How can other business functions impact the work of operations management?
the marketing department discovers consumers’ needs and attracts customers
HR department recruits employees to make the products
finance department ensures funds are in place to meet the needs of production
What is capital intensive production?
production process that uses more physical capital (machines) than human labour
What is labour intensive production?
the production is more human labour than physical capital
What is job production?
the production of unique items that are tailor-made to fit the needs of the individual customers
What are the advantages and disadvantages of job production?
A: flexibility and choise
high quality
high profit margin
D: High costs
Time consuming
cash flow problems
What is batch production?
producing items in groups of identical products
What are advantages and disadvantages of batch production?
A: some flexibility and variety
economies of scale
low risk
D: high storage costs
low worker motivation
high production costs
What is mass/flow production?
the production of large amounts of standardised products on an assembly line from stage to stage
What are the advantages and disadvantages of mass/flow production?
A: large-scale production
standardised quality
low costs of production
D: less flexiblity
low worker motivation
What is mass customisation?
producing large quantities of goods that can be adjusted to customer specifications
What the different types of mass customisation used by businesses?
collaborative customisation
adaptive customisation
cosmetic customisation
transparent customisation
What is collaborative customisation in mass customisation?
there is close interaction between the business and the customer to adapt a mass-produced product to fit the customer’s needs
What is adaptive customisation in mass customisation?
customers choose from pre-set customisations provided by the business
What is cosmetic customisation in mass customisation?
whent the face of the product is changed to suit the needs of the customer
What is transparent customisation in mass customisation?
personalized products are recommended to the customer based on their online shopping cart
What are the advantages and disadvantages of mass customisation?
A: customer satisfaction and loyalty
low costs
High profits
D: Handling returns
time consuming
