Business Operations Flashcards
Job production
when a business produces products that meet specific customer requirements
Advantages of job production
can charge higher
high quality products
less likely to have unmotivated employees
Disadvantages of job production
expensive to produce products
trained and skilled employees
Flow production
when a business makes large numbers of identical products on a continuous production line
Advantages of flow production
able to produce large volumes of products
employees specialise in small number of skills
produces in large quantities reduces the cost per unit
Disadvantages of flow production
high initial costs of machinery
a lack of flexibility
employees unmotivated
increased risk
Just in Time
a stock control method where the business doesnt store any raw materials
Advantages of Just in Time
more space for production
smaller but more frequent deliveries mean that products will be fresher
no longer have large amounts of capital
reduce waste
reduces production costs
Disadvantages of Just in Time
hard for businesses to react to unexpected changes
unable to use bulk buy discounts
could receive poor service
Just in case
a stock control method that involves producing or purchasing stock with excess
Advantages of just in case
increases the level of customer satisfaction
reduce chance of running out of stock
benefit from bulk buying
Disadvantages of just in case
products kept in stock for long time reduces freshness
high amount of cash tied up in stock
Procurement
getting the right supplies from the right suppliers at right time and place
Logistics
making sure the correct products are procured that they will arrive when needed
