HL Unit 4 Flashcards
(42 cards)
Lean Production
Producing efficiently and minimizing wasted resources
Whilst maintaining high quality
→ Less waste and greater efficiency
Ways to minimize waste
Transportation costs
Movement of people
Holding too much stock
Waiting time in production
Too much complexity (Overprocessing)
Defect products
Overproduction
Ways to increase Efficiency
Improve EE’s skills
Improve motivation
Better technology
Better management
Continuous Improvement (KAIZEN) (lean prdocution)
What is required?
Pros?
A philosophy whereby all EEs contribute to improving the production process
The opposite of autocratic
Requirements
- Inclusive culture, needs the right culture
- EEs are empowered, motivation, new ideas
- Training needed
Just in Time, requirements
Stock control method
Inputs arrive just before they are used in the production process
Finished products are delivered to consumers as soon as they are produced
Requirements
- Good relationship with suppliers
- Flexible staff and machinery
- Accurate forecasted demand (sales)
- Suitable IT systems
Pros and cons of Just in Time
Pros of JIT:
Holds less stock - reduced opportunity cost, more factory space
Stock does not become outdated
Can respond to market quickly
Motivated staff - job rotation and enrichment
Cons of JIT:
Entirely dependent on suppliers
Higher delivery costs and less bulk buying
Need to purchase and maintain IT
Loss of reputation if unable to meet orders
Cradle to Cradle
Production techniques that are efficient, waste free and sustainable
E.g. waste from food processing is used as a compost
E.g. metal offcuts is recycled and used again
Quality Control, cons
Inspection of the product or service (or a sample)
For the end product
E.g. A car at the end of production line
E.g. A teacher in the classroom
Cons
Negativity among staff
Costly as have to hire quality control managers
Lack of EE responsibility
Quality Assurance, advantages over quality control
Setting agreed quality standards at all stages in the production process to ensure consumer satisfaction
Not just on the finished product
Standards for:
- Design, input quality, production, delivery and after sales service
Advantages over quality control
- All EEs are responsible
- Increased EE motivation - job enrichment
- Can identify where the problem is
- Prevention rather than inspection reduced the need for final inspection
Methods of managing quality
Benchmarking
Quality circle
Total Quality Management (TQM)
Benchmarking
A process where you identify the best firms in the industry
Compare to own firm
Quality circle
Group of EEs meet regularly to discuss ways of improving quality
They then present ideas to management
Total Quality Management (TQM)
- All EEs are involved in the process and it is part of the job
- Require a company culture and extensive training
- Think of your internal customer
‘Customer’ within the organization who use your ‘product’ - Technology is allowing this to go further
The importance of national and international quality standards, downsides
International Organization for Standardization (ISO)
Certificate = ISO 9000
Sign of quality assurance
But
Costly
Training
Bureaucracy involved
→ E.g. Pre-Brexit products were produced based on the EU Law now it is checked when exporting → bad for small businesses
Crisis Management
- When a crisis happens then reacting to a event
- Implementing a plan of action when a damaging event happens
- Reactive
Contingency Planning
Preparing a plan of action in advance in case a crisis or emergency happens
Proactive i.e. prepare plans so can react better
Ideally
When a crisis occurs, use the contingency plan
E.g. fire alarm in school
E.g. a business finds out its product is faulty
E.g. what happens if customers top buying products
but
Some things are (almost) impossible to anticipate
What are the factors that determine whether a business reacts well during a crisis?
Transparency
- Being honest and not hiding important information
Communication
- Being proactive and sharing information with relevant stakeholders
Speed
- How quickly you make decisions and communicate
- Impact of social media
Control
- How much control you have over what’s happening
- Control the news rather than being the news
Advantages and Disadvantages of Contingency Planning
Advantages of Contingency Planning:
Risks - minimize damage and reassure stakeholders
Safety - impact on injuries/damage
Disadvantages of Contingency Planning:
Costs - extra staff, training, need for updating stakeholders
Time -Training, meetings
Data Analytics
The process of collecting and analyzing data that can be used by businesses to gain insights
E.g. market research
E.g. costs
Database
A collection of data that has been organized
E.g. employee records
E.g. customer data
Cybersecurity and Cybercrime
Cybercrime = illegal activity carried out by computer/internet
Cybersecurity = Defending computers/networks from cybercrime
- E.g. consumer data, ransomware
Virtual Reality
A computer-generated version of the world where people can interact with each other and things
- E.g. Marriott VRoom service for guests
The Internet of Things (iot)
When sensors are attached to devices which are then connected to the internet (network) and data can be shared across this network
E.g. Smart Fridges
Artificial Intelligence
The creation of computers/machines that can perform tasks that usually require human intelligence
