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Flashcards in Operations Deck (31)
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1

Name consequences of overstocking

Supplies out of date
Supplies out of fashion
Risk of theft
Additional costs of security and insurance
Money tied up, could be used elsewhere

2

Name consequences of understocking

Stops production
May not meet customers orders
May be unable to achieve unexpected orders
Machine downtime, labour downtime
Loss of bulk buying discounts for small orders

3

Name features of inventory management system

Max stock level
Min stock level
Reorder level
Reorder quantity
Lead time

4

Advantages of computerised stock control

Databases automatically updated
Linked to tills through EPOS
Automatic reordering
Easier to manage slow moving stock
Reduced labour time for stock counting and input
Highlights demand patterns

5

Disadvantages for computerised stock control

Expensive
Training time
Relies on data accuracy

6

Advantages of JIT

Less wastage
Better quality management
Less space
Reduced cycle times
Money not tied into stock
Less storage facilities and costs

7

Disadvantages of JIT

Late deliveries will stop production
Good relationships required with suppliers
Affected by road infrastructure
No room for error in production

8

Advantages of centralised warehousing

Increased distances of getting stock to required area
Specialised equipment needed
Usage levels may be unclear
Larger areas may lead to stock deterioration

9

Advantages of decentralised warehousing

Inventory close at hand
More responsive to local needs
Less overstocking
Usage reflects production

10

Disadvantages of decentralised warehousing

Additional costs of duplicating security etc
Inconsistency between sites
Smaller stock levels may result in understocking

11

Methods of distribution

Road
Rail
Air
Sea
Utilities infrastructure
Satellite
Mobile networks

12

Advantages of job production

Higher prices may be charged
Unique product
Customer specifications
Job can be altered to meet changing specs
More skilled and motivated employees
Stay ahead of competition by offering non standard products

13

Disadvantages of job production

Higher wages to skilled staff
High costs may limit customers
Long lead times
Materials avoid bulk discounts
Ex pensive equipment may have limited usage

14

Advantages of batch production

Batches adapted to customer requirements
Batches can be seasonal
Standardised machinery
Less skilled workers
Material can be bought in bulk

15

Disadvantages of batch production

Long changeovers
Mistakes can affect an entire batch
Employees boredom
Small batches increase unit cost

16

Advantages of flow production

Mass production high sales
Capital equipment increases consistency, quality
Bulk buying discounts

17

Disadvantages of flow production

Products cannot be adapted
Workers boredom
Breakdowns – long down time
High Investment

18

Advantages of automation

Consistency
Accuracy
Can do dangerous tasks
24/7
quicker
Less employees

19

Disadvantages of automation

Huge investment
Breakdowns can lose hours of production
May demotivate employees
Machinery does what its programmed to do – no flex

20

Advantages of mechanisation

Standardisation can be Preprogrammed
Machinery improves accuracy
Labour can highlight issues
Takes away heavy manual element of job

21

Disadvantages of mechanisation

Labour training
Initial set up costs high
Breakdowns are costly
Machines need updating

22

Definition of quality

Physical appearance
Durability and reliability
After sales service
Reputation
Value for money

23

Why is quality important

Good reputation
Legal requirement
Competitiveness
Higher prices
Less returns#
Less complaints
Reduce waste/ reworks

24

Name types of quality standards

BSi and ISO
BS5750 and ISO 9000
CE mark
Investors in people
Kite mark
Royal warrant
Trade branding ie Eggs/ meat

25

Ways of ensuring quality

Quality control
Quality assurance
Quality management
Quality Circles
Benchmarking
Mystery Shopper

26

Aspects of TQM

Quality policy
Quality standards
Team working
Training
Continuous improvement
Zero defects

27

Ethical Trading

Fair trade
Not using child labour
Not using sweat shops
Equality
Health and safety

28

Environmental issues

Pollution( air/ water/noise)
Recycling
Waste reduction
Packaging reduction
Reducing energy
Green house gases
Sustainable development
Limited resources

29

Benefits of recycling

Limits use of natural resources
Save energy
Reduction of greenhouse gases
Reduces landfill

30

Advantages and disadvantages of environmentally friendly

Good Image
Attracts customers
Increase profits
Attracts employees

Costs
Redesign of processes
Training