Operations

Question 1

Stock management is..?

Answer 1

The system to control the quality of stock held by a business
meet customer orders
maintain production
avoid waste capital on unused/unwanted stock

Question 2

What does the maximum stock level show?

Answer 2

Most amount of stock held on site

Question 3

What does the minimum stock level show?

Answer 3

Least amount of stock held on site.

Question 4

What does the contingency zone show?

Answer 4

Stock available for unexpected orders

Question 5

What does the re-order level show?

Answer 5

Stock level when an order is sent to the supplier.

Question 6

What is the re-order quantity?

Answer 6

amount of stock ordered to get stock back to minimum

Question 7

What is lead time?

Answer 7

time taken for supplier to deliver an order

Question 8

Consequences of having too little stock
(Under stocking)

Answer 8

-Production slows down/stops
-Orders aren’t fulfilled on time
-Not being able to accept unexpected orders
-Inventory deteriorating- waste
- Increased storage and insurance costs- less profit
-Easier for staff to steal inventory

Question 9

Factors to consider when choosing a supplier?

Answer 9

• Reliability
  -Location
  -Quality
  -Reputation
  -Cost
  -Ability to meet unexpected requests

Question 10

Job Production is..?

Answer 10

One off unique products
made individual to customers
One product will be started and completed before work on the next product
Usually made by hand
Involves highly skilled workers

Question 11

Example of Job production is (3)

Answer 11

Hairdresser
Dress maker
Cake decorator

Question 12

Advantages of Job production (4)

Answer 12

+Products are fully bespoke
+High prices can be charged
+boosts business’ reputation
+Satisfied customers

Question 13

Disadvantages of Job production
(4)

Answer 13

-Workers are payed more
-lead time is slow
-If a mistake is made the product is lost and cost is higher
-Cannot buy in bulk so then miss out on discounts

Question 14

Batch Production is..?

Answer 14

Making products in small groups
Products within each batch will be identical
Each batch can be different
Products within a batch all go through the same stages of production.

Question 15

Example of Batch production?

Answer 15

A bakery making a range of cakes and breads

Question 16

Advantages of Batch production? (4)

Answer 16

+You can customise each batch
+ Large amounts can be made from economies of sale
+Requires less skilled workers which reduces costs
+Charge less which makes it more affordable

Question 17

Disadvantages of Batch production? (2)

Answer 17

-A mistake in a batch means an entire group of products wasted
- Items can only be customised within a batch

Question 18

What is Economies of Sale?

Answer 18

The money saved when you buy in bulk

Question 19

Flow Production is..?

Answer 19

Mass producing identical products
Products are made on an assembly line
One very specific task is completed at each stage where a different component is added to the product
Tends to be capitol intensive

Question 20

Example of Flow Production?

Answer 20

Car manufacturing

Question 21

Advantages of Flow production? (4)

Answer 21

+Mass production of identical products
+Very large quantities
+consistency in quality
+High economies of sale

Question 22

Disadvantage of Flow production? (3)

Answer 22

• Products cannot be tailored or customised
  -High setting up cost
  -If machinery breaks product can stop and can have a huge impact on meeting customer orders.

Question 23

What does Labour Intensive mean?

Answer 23

People carrying out most of the tasks

Question 24

What does Automisation mean?

Answer 24

When all of the production is managed by technology.

Question 25

What does Capitol Intensive mean?

Answer 25

When most of the tasks are done by machinery.

Question 26

Some methods to ensure quality? (3)

Answer 26

-Raw material The higher quality of raw material will produce a higher quality finished product -Employees Well skilled and motivated staff can help produce high quality products or high quality services -Technology The technology of the machinery will affect the quality of the finished product

Question 27

What is Quality Control?

Answer 27

Consists of 2 quality inspections. 1. quality of raw materials before production starts 2. end of production checks the finished good

Question 28

Advantage of Quality Control?

Answer 28

Poor raw materials do not enter production process Poor products don't get made so less complaints are made

Question 29

Disadvantage of Quality Control?

Answer 29

Lots of waste as product isn't checked until after production Difficult to know where the fault is

Question 30

What is Quality Insurance?

Answer 30

Checking quality at every stage of production

Question 31

Advantage of Quality Insurance?

Answer 31

Faults are easily found and fixed little waste

Question 32

Disadvantage of Quality Insurance?

Answer 32

Production is slow

Question 33

What is Quality circles?

Answer 33

Small group of employees from different levels across a business who meet regularly to discuss how to improve quality of product/service.

Question 34

Advantage of Quality Circles

Answer 34

Employees feel valued

Question 34

Disadvantage of Quality Circles

Answer 34

Meetings reduce valuable time

Question 34

What is bench marking?

Answer 34

Identifies a company with high quality and then changing policies, methods and strategies to be as good as them

Question 35

Advantage of bench marking?

Answer 35

Motivational to employees Provides a clear goal for all employees

Question 35

Disadvantage of Bench marking

Answer 35

Stressful for employees to meet high standards Time consuming Expensive to change everything