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Operations Management Within A Business Environment Flashcards

1
Q

Types of Production

A

Job, Batch, Flow, Lean

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2
Q

PESTLE

A 
Political
Economic
Social
Technological
Ethical
Legal
Environmental
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3
Q

How to add value

A 
Build a brand
Deliver excellent service
Product features and benefits
Offer convenience
Lower costs
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4
Q

Benefits of adding value

A

Can change a higher price
Creates a point of difference from competitors
Protects from competitors asking customers
Focuses a business on its target market
Lower average costs

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5
Q

Invention

A

An entirely new product is created for the first time

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6
Q

Innovation

A

An existing product is improved, using a new idea or approach

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7
Q

Market orientated

A

When a business reacts to what the the customer needs or wants

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8
Q

Product orientated

A

The business develops products based on what it is good at making or doing

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9
Q

Job

A

Products are made individually that are Iquitos to a customer’s standards

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10
Q

Advantages of job production

A 
Better quality
Can change higher price
staff are motivated due to variety
Greater flexibility
Customer requirements can be handled
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11
Q

Disadvantages of job production

A 
Slow and labour intensive
Higher average costs
Must have high skilled, expensive workers
Do not Benfro from EoS
Requires close working with the client
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12
Q

Batch production

A

A group of identical products are made at once. The product being made can change

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13
Q

Advantages of batch production

A 
Many products made
Lower average costs
Benefit from EoS
Customers still retain some choice of productCan hire less products
Faster than job
Some flexibility
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14
Q

Disadvantages of batch

A 
Greater risk of error
Not motivational for worker
Higher initial costs
Down time between batches
Must store the resources
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15
Q

Flow production

A

Also called mass production, there is a continuous flow of items moving through the production process

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16
Q

Advantages of flow production

A

EoS- lower average cost per unit
Fastest method
Can hire less, and less skilled, workers

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17
Q

Disadvantages of flow production

A

High initial costs and set-up time
Demotivated worker
Customers get very little choice
If something happens whole production is stopped

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18
Q

Process production

A

The act of changing a raw material into a finished product

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19
Q

Cell production

A

The whole production process is split amongst a team into small groups called cells

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20
Q

Advantages of cell production

A 
Shorter lead times
Higher productivity
Decreased throughput 
Improved quality
Increased output
Less work in progress goos have to be stored
Workers are much more motivated
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21
Q

Disadvantages of cell production

A

Low equipment utilisation
If equipment goes down, so does whole cell
Higher cost per unit
Any small change can have a large impact on the whole structure
Not suitable for all types of products

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22
Q

Factors that may cause a change in production method

A

Culture, nature of product, cost of machinery, workforce, finance, customers, competition, stakeholders / objectives, practicality of change

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23
Q

Productivity

A

Output per unit of input which can be applied to any factor of production

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24
Q

Factors of production

A

Land, labour, capital and enterprise

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25
Division of labour
Occurs when labour is split into many different tasks
26
Productivity formulas
Number of goods produced divided by average number of employees Output divided by number of employees and machines Sales revenue divided by number or value of machines Sales revenue divided by wage bill or number of employees
27
Economies of scale
A reduction in unit costs achieved as the scale of production increases
28
Diseconomies of scale
An increase in unit costs as a result of a decrease or increase in production
29
Internal growth
When a firm grows naturally over time simply done by increasing its size to satisfy an increase in demand
30
External growth
When a firm grows quickly by merging with, or taking over another business
31
Internal economies of scale
Achieved as a result of. Firm growing internally
32
External economies of scale
Achieved by a firm as a result of growth Edith in the industry in which it operates
33
Purchasing economies
Gained as a result of being able to purchase raw materials and other supplies in large quantities
34
Financial economies
Larger firms can negotiate cheaper loans, and are more likely to secure one in the first place because of less perceived risk and more assets to act as security
35
Managing economies
Larger firms can employ specialist managers to allow them to operate more effectively
36
Technical economies
As a firm grows, it can buy more effective equipment
37
Marketing economies
Larger firms can afford more effective marketing. Some advertising like television adverts are out of reach for small firms
38
Risk-bearing economies
Larger firms can spread risk by diversifying into different products
39
Agglomeration economies
The benefits from concentrating output and housing in a particular area
40
Capacity
The amount of products that a business can produce
41
Capacity utilisation
The percentage of total capacity that is being achieved in a given period
42
Capacity utilisation formula
Actual level of output divided by maximum possible output times 100
43
Capacity management
The process used to ensure the capacity is capable of meeting current and future needs in a cost effective fashion
44
Stock control
The process of ensuring that appropriate amounts of stock are maintained by a business, so that they can meet customer demand while keeping associated costs to a minimum
45
Minimum stock amount
The lowest amount of product that a business wants to hold
46
Maximum stock level
The highest amount of stock that a business wants to hold
47
Re-order level
The level at which a new order of stock will be placed
48
Lead time
The time between placing an order and receiving the stock
49
Buffer stock
The stock held incase of unexpected orders
50
Lean production
Focuses on cutting out waste whilst ensuring quality. This approach can be applied to all aspects of a business
51
Judoka
``` Method used to ensure quality, and to fix the problem for the future. Discover an abnormality Stop the process Fix the immediate problem Investigate and stop the root cause ```
52
Advantages of Jidoka
Bad practices aren’t spread within the business Improved quality and less defective products Automated equipment benefits from human judgement Employees have responsibility - motivated
53
Disadvantages of Jidoka
Reliant on employees noticing the issue Downtime to check machines stops the whole production May take a while to find the root cause
54
Kaizen
A continuous improvement approach of introducing incremental changes to improve the production process
55
Advantages of Kaizen
Improve team work Builds leadership skills Better safety practices
56
Disadvantages of Kaizen
People can be resistant to change Had to go back to old management Friction may occur
57
Kanban
A system for managing work as it moves through a process. It visualises the process and the actual work. Aims to identify potential bottlenecks
58
Just In Time
Materials are delivered immediately as they are needed to minimise inventor stock
59
Advantages of JIT
Less space required to hold stock Good for smaller businesses Prevents over production
60
Disadvantages of JIT
Risk of running out More planning is needed Lack of control when Ealing with suppliers
61
Advantages of Cell Production
Workers are committed and motivated Better for the environment Worker ]s became multi skilled and adaptable
62
Disadvantages of Cell Production
Needs responsible and skilled workers High set up costs Whole production stops if maintenance is needed
63
Tune Based Management
Seeks to reduce the amount of wasted time in the production process
64
Advantages of Time based management
More productivity Less friction Less time wasted
65
Disadvantages of Time based management
Non-clear objectives Mismanagement Demotivating
66
Location
Where the business is located
67
Location supply factors
Labour costs, land costs, energy costs, transport costs, community factors, Language, political stability
68
Location demand factors
Customer convenience, labour skills, site suitability, image, expansion potential, infrastructure
69
Supply chain management
The integration of the procurement of supplies, production, warehousing and transportation
70
Reshoring
Bringing a business operation back from oversees
71
Offshoring
The practice of locating some of a company’s processes oversees of take advantage of lower costs
72
Subcontracting
Part of production is undertaken by another firm
73
Warehouse management
The control of the day to day operations of a warehouse, such as shipping, receiving, put-away and picking of goods
74
Distribution management
The process of overseeing the movement of goods from supplier or manufacturing to point of sale. Processes such as packaging , inventory, warehousing and logistics.
75
Quality assurance
The processes that ensure production quality meets the requirements of customers
76
Quality control
The process of inspecting products to ensure they meet the required quality standards.
77
Benchmarking
A general approach to business improvement based on the best practice in the industry
78
Service businesses
A business that provides intangible products
79
TQM
Total quality management
80
Quality circles
A voluntary scheme where workers meet during the day to consider problems affecting their work and quality
81
Gantt chart
A graphical representation of the order and duration of tasks

Business Studies (7 decks)

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