Operations Flashcards
(37 cards)
Suppliers
Operations managers must think about the: QUALITY of the product QUANTITY to be produced TIME the process will take PRICE of raw materials LOCATION of suppliers
Purchasing mix
Cost of raw materials-how much the product costs to buy- used to set the selling price
Quality of raw materials-how high the quality of the product is-if you don’t start with quality, you can’t end with quality.
Delivery time-how long it takes to be delivered- some products can go out of date.
Quantity of raw materials- how much you can buy- is there a man/min
Purchasing mix
INPUT - buying raw materials and hiring labour
PROCESS- using resources to produce products for sale,(including machinery and a skilled workforce)
OUTPUT- goods and services are packaged and sent to suppliers(channel of distribution)
Stock levels
OVER STOCKING
- too much stock can result in high storage costs
- products left unsold may be spoiled/stolen
- capital is tied up
UNDER STOCKING
- the business has nothing to sell(production may stop)
- customers may go elsewhere
- loss of sales results in loss of profits
Types of production
JOB PRODUCTION
one product is made from start to finish before another is made- wedding dresses
BATCH PRODUCTION
identical products made at the same time. All products move in a bath to the next stage.- doughnuts
FLOW PRODUCTION
parts are added to the product as it moves along the production line- cars
Factors to consider when choosing a method of production
- the actual product being made
- the quantity of the product
- ensuring high quality products
- resources available
Job production
advantages/ disadvantages
customer gets what they want( high satisfaction) - A
high prices can be charged-A
specialists tools and equipment may be needed (expensive)- D
can take a long time(employees can loose motivation)-D
Batch production
advantages/disadvantage
batches can be changed to suit requirements(higher customer satisfaction)- A
highly skilled employees are not needed(costs are kept down)-A
any mistakes can ruin the whole batch(wastes time/money)- D
equipment and employees might not have anything to do(wastes money)- D
Flow production
advantages/ disadvantages
capital intensive(uses lots of machinery)-A lower cost per unit(less mistakes)- A
inflexible( cant change anything once you start)- D
if one part breaks, the whole production stops- D
Capital intensive (advantages/disadvantages)
machinery doesn’t need breaks(works 24/7) -A
few employees are required to be paid(saves money)-A
expensive to buy machinery/equipment-D
breakdowns can be expensive, and stop production- D
Labour intensive (advantages/disadvantages)
employees can be creative and use their own initiative-A
no need to purchase expensive equipment- A
employees require specialist skills- D
the quality of work can vary- D
Quality inputs
QUALITY RAW MATERIALS- ensure the quality of raw materials used is of the standard required
STAFF TRAINING- ensure all the staff are fully trained to perform their duties to the standard required
MACHINERY- ensure machinery and technology is well maintained and regular checked
Benefits of quality products
customers are more likely to make repeat purchases
business will get a good reputation- encourage new customers
profit and sales can be maximised
the market share of the business can grow
Quality
BENCHMARKING
copying the best techniques and applying them throughout the production process(may come from a competitor)
QUALITY ASSURANCE
checking the quality of the product at various stages in the production process(waste can be cut if problems are found earlier)
QUALITY CONTROL
a manufacturer passes a sample of raw materials and the final product through a quality control check. Any unacceptable products are discarded. This ensures that substandard products are not sold to customers.
QUALITY CIRCLES
a small group of workers meet regularly to discuss improvements.
Technology in operations
PRE- PROGRAMMED MACHINERY
programmed machinery can work all the time
ONLINE ORDERING
ordering products online
AUTOMATIC STOCK CONTROL
controls stock automatically
AUTOMATED QUALITY MEASURES
machine that checks quality
Business ethics
what business can do to be ethical: minimise waste recycle where possible minimise packages preven pollution
The role of HRM
deals with any issues relating to the management of staff RECRUITING AND SELECTING EMPLOYEES MOTIVATING AND TRAINING STAFF PROVIDING SAFE WORKING CONDITIONS PROMOTING GOOD WORKING RELATIONSHIPS ENSURING EMPLOYEES GET PAID CORRECTLY
Recruitment process
IDENTIFY A JOB VACANCY
check to make sure a job vacancy actually exists
CARRY OUT A JOB ANALYSIS
job vacancy is looked at in detail and the tasks and duties/responsibilities are considered
PREPARE A JOB DESCRIPTION
contains information about what the job involved (tasks, duties, pay, working hours)
PREPARE A PERSON SPECIFICATION
provides information about the type of person required to do the job(skills,qualities,qualifications)
ADVERTISE THE JOB
make people aware that a job vacancy exists
SEND OUT APPLICATIONS
complete an application or send a CV
Training
INDUCTION
- given to new staff
- introduces to company policy
- given a tour of building
- told their responsibilities
- introduced to health& safety/ evacuation
ON THE JOB
- known as in house training
- could be given by someone who visits the company
OFF THE JOB
- out with the organisation (college or training centre)
- qualifications can be gained
Induction (advantages/disadvantages)
- become aware of what is needed of them - A
- introduced to business policy- A
- meet new colleagues - A
On the job (advantages/disadvantages)
- employee is trained while still crying out their job(saving money)-A
- training can be tailored(specifically to the needs of the business)- A
- cheaper than off the job -A
- not always taken seriously-D
- loss of productivity- D
Off the job (advantages/disadvantages)
- networking can occur(passing on information)-A
- training is taken more seriously-A
- can be v expensive - D
- some training may not be relevant-D
- employees may leave the business-D
Training
- staff become more flexible-A
- staff become more productive-A
- fewer mistakes are made-A
- organisations image improves- A
- staff may leave-D
- financial costs may be high - D
- work time may be lost- D
- quality of training must be high to be beneficial-D
Selection process
APPLICATION
-information in written form
-used to make a decision as to whether or not the person would be suitable for the job
-if theses are not completed well, they may be eliminated straight away regardless of the persons ability to perform the job
CONTAINS PERSONAL DETAILS, NAME, ADDRESS,QUALIFICATIONS
TESTING
Put under different types of test that will determine how good they will be for the job
- content of the CV can be confirmed-A
-can provide information about the personality of the applicant-A
- time consuming-D
- some people may not perform well in tests-D
INTERVIEWS
- most common method
- ensures all candidates are asked the same questions
- personality and appearance of candidate is seen-A
- candidate can ask questions-A
- time consuming-D
- interviewer may be bias-D
- some people may not perform well- D
SUCCESS
one candidate is selected for the job
