operations Flashcards
(86 cards)
1
Q
consequences of overstocking
A
- supplies could go out of date or fashion
- to much supplies leaves a risk of theft
- money tied up in stock
- cost for storing, insurance and security
2
Q
consequences of understocking
A
- run out of stock
- no stock to sell resulting in bad reputation
- increase delivery costs and administration due to smaller deliveries having to be made often
3
Q
description and justification of maximum stock level
A
- the most amount of stock that should be held
- avoids consequences of overstocking
4
Q
description and justification of minimum stock level
A
- the least amount of stock that should be held
- avoids consequences of understocking
5
Q
description and justification of re- order level
A
- level where stock is re-ordered
- avoids running out of stock
6
Q
description and justification of re-order quantity
A
- amount that is ordered
- ensures the quantity order is not too much or too little
7
Q
description and justification of lead time
A
- time taken between an order being placed and stock arriving
- as short a lead time as possible allows the business to react to rush orders
8
Q
setting maximum stock level
A
depends on the storage available, the cost of storing goods and the maximum amount of demand
9
Q
setting minimum stock level
A
depends on the relationship with suppliers, the skill levels of staff so materials are not wasted, the finance available, the minimum amount of demand and the likelihood of drastic changes to taste and fashions
10
Q
setting re-order level
A
depends on lead time, the amount of stock already held, discounts available and the maximum and minimum stock levels
11
Q
advantages of computerised stock control
A
- databases keep balance of inventory
- can be linked to tills through EPOS
- accurate and constant monitoring of stock levels
- acts as a deterrent to theft by staff
12
Q
disadvantages of computerised stock control
A
- cost a lot to install and maintain
- time invested to train staff to operate the system efficiently
13
Q
advantages of just in time stock management
A
- no wastage as all stock is used
- no money tied up in stock
- business is more responsive to changing external factors
14
Q
disadvantages of just in time stock management
A
- if deliveries are late then production stops
- takes time to develop relationships with suppliers
- relies on good infrastructure between the business and suppliers
- no room for error in production
15
Q
advantages of centralised storage
A
- specialised staff improves speed of stock handling and security
- can store a massive amount of stock
- cheaper to store in one place
- located close to infrastructure
16
Q
disadvantages of centralised storage
A
- inventory delivered to each division causes delays
- specialist staff need employed so high wages
- communication between divisions and warehouse
17
Q
advantages of decentralised storage
A
- inventory is always close at hand when needed
- smaller, more local warehouses are more responsive to local needs
- smaller amounts of inventory result in no negative consequences of overstocking
18
Q
disadvantages of decentralised storage
A
- can lead to wastage or theft as security is not good
- each division hands inventory differently leading to inconsistency and problems being harder to pinpoint
- smaller amounts of inventory results in negative consequences of under stocking
19
Q
what is a logistics manager
A
- they are responsible for inventory, storage and distrubution
20
Q
methods of distribution
A
road, rail, air, sea, satellite, utilities infrastructure, mobile networks
21
Q
advantages and disadvantages of road
A
advantages- quick and efficient, allows door to door delivery to and from location 24 hours a day, refrigerated vehicles can be used
disadvantages- delays on roads, can be expensive due to increasing fuel costs
22
Q
advantages and disadvantages of rail
A
advantages- useful for heavy goods, a more environmentally friendly method
disadvantages- generally not the final destination for the goods
23
Q
advantages and disadvantages of air
A
advantages- ideal for long distances, quick deliveries can be made over seas
disadvantages- airport is not the final destination, more expensive method
24
Q
advantages and disadvantages of sea
A
advantages- can import or export bulky or heavy products
disadvantages- dock is not the final destination, slower method meaning longer delivery
25
advantages and disadvantages of satellite
advantages- services can be distributed directly to the customer's location
disadvantage- signals can be disrupted, high installation costs
26
advantages and disadvantages of utilities infrastructure
advantages- services can be distributed directly o customer's location , infrastructure being improved every year especially in busy areas
disadvantages- disruptions from weather, high installation costs, rural areas might not be able to access it
27
advantages and disadvantages of mobile network
advantages- extra products can be purchased using the network eg m-commerce, 4G s now available which increases signal strength and access to internet
disadvantages- signal disrupted, rural areas could be left out
28
purpose of sales budgets
- to provide targets for staff to aim to
- be used in conjunction with bonuses or commission for meeting targets
- motivate sales staff to reach targets
29
purpose of production budgets
- plan production so that there are enough goods to meet anticipated sales
- allow enough raw materials to be purchased so there is no under stocking
- allow for not too many raw materials to be purchased so there is no overstocking
30
job production
involves producing unique, one off products. products are made to order one at a time from start to finish. products are made to customer's specific requirement
31
advantages of job production
- higher prices can be charged
- products can match exact requirements which increases customer satisfaction
- employees more motivated as each project is slightly different
- business can stay ahead of competitors by offering non standard products
32
disadvantages of job production
- high wages to be paid for highly skilled staff
- high costs can make prices to high which can put customers off
- expensive tools and machinery might be required
- lead ties can be lengthy meaning customers cannot walk in and purchase the product
- missing out on bulk buying discounts
33
batch production
making groups of identical products at a time. one batch is made and then another batch will be made but slightly altered. batch production is common in the food industry.
34
advantages of batch production
- batches can be adapted to met customer requirements
- machinery can be standardised which saves costs
- less need for highly skilled workers
- materials can be bought in bulk, gaining discounts
35
disadvantages of batch production
- equipment and staff sit idle between batches as machinery needs cleaned and reset
- if a mistake is made the entire batch is ruined
- employees can be demotivated due to repetitive work
36
flow production
identical products being made on an assembly line. the products are made in stages and parts are added as they move down the line
37
advantages of flow production
- huge amounts of products can be produced
- workers specialise in the task which speed up production
- it is often capital intensive which increases consistency
- there are economies of scale from bulk buying
38
disadvantages of flow production
- products cannot be adapted to suit customer requirements
| - workers can be demotivated
39
automation
involves the use of computer aided manufacture to control fully automated lines that use robotics.
40
advantages of automation
- C.A.M produce products in exactly the same way every time, improving consistency
- C.A.M doesn't lose concentration so less mistakes are made which limits waste
- robots don't take breaks so can work 24/7
- fewer employees needed reducing wage cost
41
disadvantages of automation
- huge investment is needed
- breakdowns can be catastrophic, losing hours of production
- replacing labour with robotics will demotivate retained employees
- lack of creativity and personality in the products produced
42
mechanisation
refers to labour and machines working together to produce products. e.g a sewing machine in a textile factory
43
advantages of mechanisation
- improves accuracy as human error is lessened
- using machinery can speed up production
- human element exists un mechanisation, improving creativity.
44
disadvantage of mechanisation
- machinery can't be used without humans so are liable to some human error
- production can't be 24/7 as humans require breaks
- if machinery breaks down the business have to repair it leaving work idle.
45
labour intensive production
involves humans doing most of the work. e.g. skilled hand crafts
46
advantages of labour intensive production
- labour is less expensive than capital intensive production
- humans can use initiative and creativity
- employees are motivates as they are not giving up task to machines.
47
disadvantages of labour intensive production
- business is at high risk of human error resulting in waste or faulty products.
- humans have to take breaks which limits production time.
- humans have to be paid overtime for working over normal hours
- recruitment, training and wage costs need to be considered.
48
factors affecting method of production
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quantity of goods require
skills of the workforce
cost of labour
finance available
technology available
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49
why is quality important
- poor quality goods can result in customers returning their purchases causing a loss in sales.
- extremely low quality can result in products not meeting safety standards which can lead to bad PR
- high quality goods result in good reputation
- can attract high quality staff
- high quality goods can be sold for premium prices.
50
quality control
inspecting raw materials or finished goods to check they are of an acceptable standard and quality
51
advantages of quality control
- ensures that faulty goods are not sent to customers
| - limits the potential for a bad reputation due to faulty products.
52
disadvantages of quality control
- can create a lot of waste
| - products have to be reworked from scratch costing the business time and money.
53
quality assurance
method of prevention where products are checked to see that they are of a high quality at different stages in the development and production process.
54
advantages of quality assurance
- less wastage which decreases costs spent on discarded materials
- easy to identify where faults in the production process lie.
55
disadvantages of quality assurance
- can slow down production as many processes are inspected
| - can increase he costs of production
56
quality improvement
everyone and every process in the organisation continuously improving.
57
advantages of quality improvement
- business stay ahead of competitors
| - the business can react easily to changing external factors.
58
disadvantages of quality improvement
- the business can have high staff development costs
| - employees may feel under pressure to continually keep improving
59
quality circles
involve a group of employees meeting with a line manager to discuss problems in the production process and how to solve them.
60
advantages of quality circles
- employees will be motivated as they get to have a say in decision making
- management get well informed suggestions from the worker who actually produce the product
61
disadvantages of quality circles
- employees meet during paid company time meaning production time is lost
- employees are often trained to join a quality circle costing the business even more money and time
62
quality standards and symbols
proves that a product has met an agreed industry standard such as achieving a star rating
63
advantages of quality standard and symbols
- awards prove to customers that a product has met an agreed standard of quality
- symbols can be used as a promotional tool
- customers will have confidence in purchasing the product
- higher prices can be charged as the product is of high quality
64
disadvantages of quality standard and symbols
- time consuming process
- agreed standards need to be maintained
- if any award is removed it would give a bad reputation
- annual checks and audits can disrupt production
65
benchmarking
involves copying the quality of a finished product and the process used to achieve it used by the market leader
66
advantages of benchmarking
- if it successful the product will be as good as the best on the market
- save the business time developing their own approach to ensuring quality
67
disadvantages of benchmarking
- can be difficult to gain information about other organisations quality method
- business will never be better than the market leader they are benchmarking
68
quality management
it incorporates a variety of methods and ensures all people in the organisation are committed to quality to ensure 0 errors
69
advantages of quality management
- drastically reduces waste
- staff are motivated as they are consulted on improving quality
- products will be renowned for being of the highest quality
70
disadvantages of quality management
-substantial staff training to ensure no mistakes will increase costs
-requires commitment from all staff
process will need to be continuously monitored which can be time consuming.
71
mystery shopper
people from an agency are employed to purchase products, ask questions, register complaints and behave in a certain way and then provide feedback
72
advantages of mystery shopper
- not bias as employed by a different business
- valuable feedback
- mystery shoppers are not permitted to share their experience
73
disadvantages of mystery shopper
- staff may resent the mystery shopper and might take feedback personally
- mystery shopper's feedback may not be fully representative of the business as a whole as it provides a limited evaluation
- allowances have to be made for human error in judgement
- businesses need to pay mystery shoppers increasing costs
74
advantages of being ethical
- awards can be granted for being ethical which can be used for promotional purposes
- can attract customers and quality staff who agree with their principles
75
disadvantages of being ethical
- audits are needed to ensure standards are met and maintained which might be time consuming
- decision making could be more complex and time consuming as many possible solutions may not be appropriate because they are not ethical
76
philanthropy
means having a love for humanity ie giving to those in need. this could be through charitable donations , giving away goods or setting up a charitable trust as part of the organisation
77
animal welfare
the moral considerations of an organisation need to refer to the treatment and wellbeing of animals such as animal testing, and ways animals are kept. ways to prove this is the leaping bunny symbol, the free range classification and the use of synthetic material instead of fur
78
advantages of fair trade
- business is awarded a fairtrade mark which can appeal to customers
- stocking fair trade products demonstrates the retailers ethical commitment to its customers
- business that are fairtrade have a positive impact on the producers raw materials and have a better relationship with supply chain
79
disadvantages of fair trade
- losing a fairtrade mark after gaining one will result in bad publicity
- fair trade products are often more expensive
- the business has a more limited choice of suppliers
80
advantages of being environmentally friendly
- hopefully sustain their activities in the future
- gain a positive reputation
- awards can be granted for promotional purposes
- renewable energies save costs in the long run
81
disadvantages of being environmentally friendly
- expensive in the short term such as installing solar panels
- new procedures may have to be adapted to be more environmentally friendly which can be time consuming
- most environmentally friendly procedures rely on the natural environment which may not be sufficient such as lack of wind
82
carbon footprint
the impact fossil fuels have on the environment. ways to rove their commitment is use alternative sources, use low emission vehicles such as electric vehicles and use more environmentally friendly methods of distribution
83
sustainable raw materials
ensuring that raw materials are not being deleted. this will ensure the business can source raw materials in the future and give them a good reputation for being environmentally friendly. ways to prove are replanting raw material, reusing/recycling materials, using resources responsibly, utilising renewable energy
84
waste
dealing with waste appropriately. the business must segregate waste appropriately, store waste appropriately and transporting waste appropriately
85
ways that packaging could be environmentally friendly
- being reusable such as bags for life
- being recyclable
- being biodegradable
86
how technology can be used in operations
- IT such as laptops and email can be used to purchase supplies quickly
- internet used to research suppliers
- electronic point of sale (EPOS) can be used for computerised stock control and automatically reorder supplies
- computerised devises can be used for checking and finding stock
- automated systems can track deliveries
- spread sheets can be used to accurately and quickly produce production budgets
- computer aided manufacturer (CAM) can be used in automated production
- emerging technologies such as solar energy and wind energy can be used to harness renewable energy
