Operations Flashcards
(28 cards)
Methods of Production
job, batch, flow.
Job Production
When one product is made from start to finish before another is created, such as art and wedding cakes.
Batch Production
Where group of identical products are produced at one time in batches, each batch being slightly modified, such as diet coke, coke zero, coca cola.
Flow Production
Parts are added to the product as it moves along the production line, such as cars and tins of beans.
Advantages and Disadvantages of Job Production
Product can be customised to customer tastes, high prices can be charged for a unique product, motivates employees as they see it from start to finish. However wage costs are high due to skilled staff, can’t buy in bulk, and can be a long process.
Advantages and Disadvantages of Batch Production
Raw materials can be bought in bulk, less need for highly skilled workers, batches can be changed to tastes. However, one mistake can ruin batch, low motivation for employees, and no work in between batches.
Advantages and Disadvantages of Flow Production
Raw materials can be bought in bulk, production can be automated, large amounts produced consistently However, no customisation, fault occurs whole line stops, low motivation.
Consequences of Too Little Stock
Production stops, bad reputation, customer complaints.
Consequences of Too Much Stock
Increased storage costs in insurance etc, stock waste if out of date, money tied up in stock.
Stock Level Diagram
Starts at maximum stock level, diagonally down to minimum stock level, straight up to maximum level, diagonally down etc. Set a re-order level just above minimum.
Just In Time Stock Management
Stock arrives just in time to be manufactured, goods are manufactured upon order.
Advantages of Just In Time
Less cash tied up in stock, less storage space required, reduced waste as only what you require.
Disadvantages of Just In Time
Production can stop if not delivered, less environmentally friendly, economies of scales lost, higher delivery costs.
Capital Intensive
Goods are produced in a factory with a large amount of machinery. Can be automation (no human workers) or mechanisation (machinery operated by humans).
Advantages of Capital Intensive
Higher productivity as the machines work 24/7. Machines can produce a consistent product. Removes chance of human error.
Disadvantages of Capital Intensive
Breakdowns can occur, high initial costs, only suitable for standardised production.
Labour Intensive
Goods are produced in a factory with a large amount of human employees, rather than machinery.
Advantages of Labour Intensive
Low startup costs, human judgement can improve quality, employees can adapt to new jobs.
Disadvantages of Labour Intensive
Employees require breaks, accuracy and quality varies, costs to recruit and train, additional quality control may be required.
Quality Standards and Symbols
Quality standards are awarded to an organisation when it meets a set of criteria, such as Kitemark, ABTA and Investors in People.
Benefits of Quality Standards and Symbols
Improves the image and reputation of product, has proof of quality, can give competitive edge, can charge higher prices.
Methods of Ensuring Quality
Benchmarking: comparing a product with a competitor and matching standards. Quality Circles: bringing together people from all levels to discuss quality. Mystery Shopper: give feedback on quality of service, employees not aware.
How To Achieve Total Quality Management
Adopt Quality circles, create a quality policy, tolerate zero errors, train employees to desired quality, every employee focused on quality.
Technology in Operations
Computers used to purchase online, email used to confirm orders, websites to compare suppliers prices, spreadsheets to store stock levels, EPOS for stock levels, webcam for quality inspection on production line.
