CH5: Production, Operations, Purchasing, & Logistics Flashcards
(13 cards)
What is TQM and it’s key principles?
Total Quality Management is a comprehensive management approach focused on continuous improvement across all organizational processes to meet or exceed customer expectations.
Key principles of TQM
1. Customer focus
2. Employee involvement
3. Effective communication
4. Fact-based decision making
5. Continuous improvement
6. Process-centered approach
7. Integrated system
What is the role of the purchasing function in business and its strategic contributions?
The purchasing function ensures the timely acquisition of goods and services needed for operations. It contributes strategically by reducing costs, improving quality, supporting project timelines, and coordinating with other departments. Indirectly, it supports innovation and supply chain efficiency.
What are key steps in the purchasing process and how are vendors selected?
Key steps include initiating a purchase requisition, three-way matching (order, invoice, delivery note), and order finalization. Vendor selection depends on quality, price, reliability, and past performance.
What is the role of production and operations management?
Production and operations management transforms inputs into outputs efficiently. It supports the value chain by ensuring consistent quality and timely delivery, aiming to satisfy customer needs while controlling costs.
What are the main types of production layouts and their characteristics?
Process layout: Functional/horizontal grouping; high flexibility; low volume, high variety.
Product layout: Sequential/vertical flow; efficient for high volume, low variety; low flexibility.
Fixed-position layout: Product stays in place; used for large/custom items; high coordination needed.
Hybrid/Cellular layout: Mix of process and product layouts; moderate volume and variety; combines flexibility with efficiency.
What are important considerations in designing production layouts?
Effective layouts consider:
- Workflow efficiency; layout adapted to production process,
- Short distance between input & output
- Factors like lighting, temp, waste removal, supply of water, humidity
- Employee requirements; directly linked to productivity. Health, safety, noice, and air conditioning.
- Effective internal transport system, people, raw materials, machinery
- Effective external transport system
- Space costs money
- Provision for maintenance work
- Flexibility for future changes.
This ensures adaptability, safety, and high productivity.
What is quality control and when should it be applied?
Quality control ensures products meet predefined standards. Inspection should occur during and after production. Integral inspection checks every item, while sampling checks a portion.
What is statistical quality control and how does it manage risk?
Statistical quality control uses data to monitor production. It includes acceptance sampling (with consumer and producer risk) and process control based on probability assumptions to detect variation.
What are quality costs and how are they categorized?
Quality costs include control costs (prevention and inspection) and failure costs. Prevention costs aim to avoid defects, while inspection detects them before delivery.
What is logistics management and what functions does it integrate?
Logistics management plans, implements, and controls the flow of goods and services. It integrates transport, warehousing, inventory, and information systems like logistics software.
How does logistics impact marketing performance?
Poor logistics disrupt delivery, causing customer dissatisfaction. Effective logistics enhances reliability, customer service, and product availability—key components of marketing success.
What are distribution channels and how do they vary in length?
Distribution channels are paths through which products reach customers. Short channels involve direct selling, long ones include intermediaries like wholesalers and retailers.
How has logistics evolved through digitisation and IoT?
Since the 1960s, logistics has shifted from manual to digital systems. IoT enables real-time tracking and coordination. Digitised systems improve efficiency, accuracy, and visibility.
