Operations management Flashcards
Production of goods and services (28 cards)
Explain production
It is effective management of resources in producing goods and services
Explain what does the operations department do?
(i)Use the resources in a cost-effective and efficient manner
(ii)Manage inventory effectively
(iii)Produce the required output to meet customer demand
Explain productivity
It is a measure of the efficiency of input used in the production process over a period of time
Explain the formula of productivity
Quantity of output/Quatity of input
Explain the labour productivity
Output(over a given time of period)/Number of employees
Explain lean production
It refers to the various techniques a firm can adopt to reduce wastage and increase efficiency/productivity
Ways of increasing productivity
(i)Improving labour skill by training
(ii)introducing automation
(iii)Improve employees motivation
Explain the type of wastage
(i)Overproduction
(ii)Waiting
(iii)Transporation
Explain the benefit of no wastage
(i)Less storage of raw material
(ii)Quicker production of good and service
(iii)No need to repair faulty good
Explain how do we implement lean production?
Kaizen:it’s a Japanese term meaning ‘continous improvement’
Explain the aim of kaizen
To increase efficiency and reduce wastage
Explain the benefits of kaizen
(i)Increased productivity
(ii)Reduced amount of space needed for production
(iii)Improved factory layout
Just in time inventory control
His technique eliminate the need to hold any kind of inventory by ensuring that supplies arrive just in time they are needed for production
Explain the benefit of just in time inventory control
(i)Reduces cost of holding inventory
(ii)Warehouse is not needed
(iii)Finished good are immediately sold
Explain cell production
The production line is divided into separate,self-contained units
Explain the method of production
(i)job production:product are made specially to order,customised for each customer
Explain the advantage of job production
(i)Most suitable for one-off product and personal services
(ii)The product meet the exact the requirement of the customer
(iii)worker will have more varied job
Explain the disadvantage of job production
(i)skilled labour will often be required
(ii)Cost are higher
(iii)Time-consuming
Explain batch production
Similar products are made in batches or blocks
Explain the advantage of batch production
(i)Flexibility way of working can be easily switched between product
(ii)Give some variety to worker
(iii)varies of product
Explain the disadvantage of batch production
(i)Expensive
(ii)Product will delay
(iii)Lots of raw material will be needed
Explain flow production
Large quantities of product are produced in a continous process on the production line
Explain the advantage of flow production
(i)Low cost
(ii)Can benefit from economic of sale
(iii)Automation line can run 24/7
Explain the disadvantage of flow production
(i)Low statisfaction
(ii)Capital cost of setting up is very high
(iii)Production will be affected
