operational performance big cards Flashcards
(46 cards)
1
Q
robotics
A
- can be programmed to carry out both routine and increasingly complex activities
- handling operations on a production line, robots can manipulate materials into position so that other activities can take place
- robots can weld and join materials together
- other production applications, painting, gluing, sealing and cutting
2
Q
automation
A
- use of machinery to replace human resources
- operating process, automated production lines removes the chance of human error, some parts are to be completed by humans
3
Q
stock control
A
- patterns of consumer purchases and anticipate stock changes, can reduce costs
- instantly access stock level, no humans needed
- tills linked to stock control through electronic point of sale, adjusts stock levels and helps re order
4
Q
communications
A
- helps improve internal and external communications
- suppliers and customers can access company information
- improves speed of communications
- loyalty cards and buying habits, builds relationships and aids marketing
- e-commerce, online banking, card machines all of these can reduce costs
5
Q
design
A
- comparison and testing of new ideas different ideas can be introduced and compared much more quickly in a computer aided design (CAD) system
- creation of new products e.g traditional playing cards is outdated due to computer based alternatives
6
Q
technology & employees
A
- new skills and jobs, traditional manual jobs have been replaced by talks requiring compute operators
- multi skilling, technology is allowing companies to benefit from the multi tasking of staff, creating jobs that are less rigidly defined
7
Q
benefits of using technology
A
- reducing costs
- improving quality
- reducing waste
- increasing productivity
- financial monitoring
- new and better products and services
- better working conditions
8
Q
problems with using technology
A
- resistance to change
- lower morals
- cost
- keeping up with charge
- lower barrier to entry
9
Q
technology in operations management
A
- manufacturing robots are known for their speed accuracy and efficiency
- they are exact and thorough, high quality and do not take breaks
- they are used for repetitive, hazardous and boring tasks
- they are more accurate than workers which increase the efficiency and reduces waste
10
Q
computerised stock control programmes
A
these keep accurate records of goods in stock, good arriving and goods sold.
used to awnser questions such as …
- how much product is in stock
- how old is this stock
- which are the fastest moving items of stock & which are the slowest
11
Q
advantages of computerised stock control
A
- automatic stock control, triggering orders when the re-order of stock level is reached
- bar coding systems, which speed up processing, recording of stock and customer checkouts
- less labour required and fewer errors made
12
Q
advantages of communications technology
A
- an intranet system gives rapid and cheap internal communications within the organisation
- can be used to improve the accuracy and speed of passing info between the operations management department and the other departments of the business
- the internet allows supplies to be bought quickly from the cheapest supplier online
13
Q
design technology advantages
A
- CAD design lay out their design on screen print it out as a 3D imagine and edit it
- new products can be designed and edited more quickly
- onscreen simulated designs mean there is no need for physical prototypes which reduces costs
- design data is passed directly to computer controlled machines for production, reducing the risk of errors and wastage and improving the firms environmental image
14
Q
quality
A
the quality of a product depends on its ability to meet customer requirements consistently, this will depend on:
- how well the needs have been defined
- how well the firm has designed the manufacturing process
- how well designed the product is
15
Q
intangible & tangible
A
intangible
- imagine
- brand
- reputation
- exclusiveness
tangible
- appearance
- reliability
- durability
- functions
- after sales service
- repair & maintenance needs
16
Q
benefits of quality
A
- gaining a competitive advantage
- impact on sales
- creating a USP
- impact on sales selling price
- pricing flexibility
- cost reductions
- firms reputation
17
Q
issues with any quality system
A
- costs, it is a costly business, especially admin costs
- training, the whole workforce may have to have a change of culture
18
Q
benefits of inspections
A
- quality checks at the end can stop faulty goods reaching customers
- inspectors can spot common problems and put them right
- it is a more secure system than one that trusts every worker to do his or her job properly
19
Q
drawbacks of inspections
A
- does not encourage team responsibility
- expensive to operate
- responsibility rests with inspectors, therefore staff take no responsibility which could reduce motivation
20
Q
key aspects of quality
A
- good design
- good functionality
- reliable
- consistency
- durable
- good after sales service
- value for money
21
Q
quality helps determine a firms success in a number of ways :
A
- customer loyalty
- strong brand reputation for quality
- retailers want to stock the product
- ad the product is perceived to be better value for money, it may command a premium price and will become more price in elastic
- fewer returns and replacements lead to reduced costs
- attracting and retaining good staff
22
Q
advantages of quality control
A
with quality control inspection is intended to prevent faulty products reaching the customer.
this approach means having specially trained inspectors, rather than every individual being responsible for his or her own work.
further more it is thought that inspectors may be better placed to find widespread problems across the organisation
23
Q
disadvantages of quality control
A
a major problem is that individuals are not necessarily encouraged to take responsibility for the quality of their own work.
rejected product is expensive for a firm as it has incurred the full costs of production but cannot be sold as the manufacturer does not want its name associated
defect levels are very high, the company’s profitability will suffer unless steps are taken to tackle the root causes of the failures
24
Q
pro’s of quality assurance
A
- workers take responsibility and it gives them a sense of ownership
- motivates workforce
- reduce costs because of less waste
- greater consistency of quality products because responsibility is spread throughout workforce
25
con’s of quality assurance
- needs a change in the culture of the organisation
- can take time to embed the system because of cultural change
- cold increase costs in the short term
26
benefits of improving quality
- gaining a competitive advantage
- increasing sales volume
- creating a use
- more scope you increase selling price
- greater opportunity for pricing flexibility
- cost reductions
- greater brand loyalty and reputation
27
difficulties of improving quality
- difficult to convince people there’s a problem
- difficulties in agreeing the best solution
- quality systems give greater responsibility to staff, may require changes in how they are managed or their approach may not go down well
- resistance to change
- costly and time consuming
- keeping pace with customer views on quality will outweigh the costs
28
consequences of poor quality
- productivity
- profitability
- reputation
- waste
- customer satisfaction
- costs
- lower sales volume
- lower price
29
quality assurance
- a medium to long term proves that can’t be implemented quickly
- focus on process
- achieved by improving production process
- target whole organisation
- emphasise the customer
- quality built into product
30
quality control
- can be implemented short term
- focus on outputs
- achieved by sampling and checking
- targeted at production activities
- emphasises required standards
- defect products are inspected out
31
quality benchmarking
is a general approach to business improvement based on best practice in the industry or in a similar one
it enables a business to identify where it falls short of current best practice and determine what action is needed to either match or exceed best practice
done properly it can provide useful quality improvement targets for a business
this can be a helpful approach for services as well as for products
32
factors required for mass customisation
- a market in which customers value variety and individuality
- quick responsiveness to market changes
- ability to provide customisation
- scope for mass efficiency / economies of scale
33
benefits of mass customisation
- cost reductions, less waste
- higher revenue
- greater customer loyalty
- competitive advantage
- improved understanding of customers wants
- greater protection from market changes
- improved workforce motivation
- higher profits
34
disadvantages of mass customisation
- requirements for sophisticated and expensive management information system
- greater expense in terms of IT, capital equipment and staff changes / training
- problems with rejected products
- unsuitable supply chains
35
value of improving flexibility
- production can be modified cost effectively so that customised products are more expensive but not significantly more so than mass produced alternatives
- customers are prepared to pay a higher price for the flexibility offered
36
value of improving speed of response and dependability :
- competitive advantages if provided at a higher level than rivals
- customers who are cash rich and time poor will be attracted
- increased customer satisfaction, higher levels of loyalty and repeat business
- higher prices
- reduced costs, more effectively delivery means fewer labour hours for delivery staff
37
reducing capacity
- selling off fixed assets
- changing to shorter working weeks or days
- laying off workers
- transferring resources to another area
38
increasing capacity
- extending factories
- overtime or longer hours
- hiring new staff
- flexible workforce
- sub contracting
39
advantages of producing to order
- responding to customer needs gives competitive advantage
- manufacturing to order cuts costs as goods are only manufacturers once orders are placed
- it is an extension of lean production techniques because stock is only ordered once customer orders are received
- it has the potential to reduce costs but increase sales revenue, therefore creating higher profit margins
40
disadvantages of producing to order
- suppliers not being reliable
- planning workforce requirements where specialisms are needed can be difficult
- workforce’s need time to adjust to new processes
- different organisational structures and cultures are required to relate to customers needs more speciality
41
advantages or part time employees
- efficient ways to keep down costs
- a way of building in flexibility
- may motivate workers
- wider pool of candidates
- may be able to retain valuable employees
42
advantages of sub contracting
- a business can react to changes in demand quickly
- specialisation can be bought in more efficiently than doing it themselves
- business can concentrate on its core
- easier to achieve non standard orders as not disruption to production line
43
disadvantages of sub contracting
- no direct control over quality of the products
- too much subcontracting can damage a businesses operations base
- the producers also have to make a profit so profit margins may be affected
- parents and methods of production may have to be shared with subcontractors
44
factors influencing decisions to outsource
- available capacity
- expertise
- quality considerations, off shoring
- nature of demand
- cost
- level of risk
- impact on profit
45
advantages of high inventory levels
- customers demands are met promptly
- there is no loss of good will caused by running out of inventory
- sudden increases in demand can be dealt with efficiently
- production lines are not halted because of shortages of raw materials
- companies benefit from bulk buying and from longer production runs
46
advantages of low inventory levels
- reduce warehouse costs are possible
- opportunity cost is possible
- security and pilferage diets are lower
- perishable products are less likely to deteriorate
- cash flow problems due to cash being tied up in inventory are less profitable
