Operations Flashcards
Another name for flow production
Mass production
A business that uses flow production is always classed as
Capital intensive
When is a business classed as efficient
When number of inputs used to produce a high amount of output is high
Kaizen
Continuous improvements to working practices
Production
The action of making or manufacturing from components or raw materials
Job production
Where 1 single product is made at a time
Advantages of job production
Motivated workers
Higher prices can be charged
Disadvantages of job production
Skilled labour is expensive
Hard to speed up if demand increases
Flow production
Uses production lines with continuous movements of items through the process
Advantages of flow production
A business can make larger quantities
More complex designs made in shorter times
Disadvantages of flow production
High costs to buy machinery
Low motivation of staff
Lean production
Lean production tries to use as few resources as possible
Just-in-time
A business does not keep stocks of parts in a warehouse
Advantages of just in time
No wasteage
Cost saving
Disadvantages of just in time
The business won’t be able to meet unpredicatble rise demands
Not able to quickly replace damaged
Opposite of just in time
Just in case stock management
Procurement
Process when businesses buy raw materials, component, products, services, and other resources from suppliers to produce their own products and services
Benefits of JIT for stock control
Less stock held
No warehouse costs
Drawbacks of JIT for stock control
Making more frequent purchases
No economies of scale
Direct procurement
Buying raw materials that are used in the making of the product, or delivery of the service
Indirect procurement
Buying maintenance contacts, ICT and other support items
Factors when choosing suppliers
Quality and reliability
Communication
Good service
Logistics
Activity of transporting goods to customers
Supply chain
All the businesses which provide parts of the product until it gets to the consumer
