TOPIC 2.3 Making operational decisions Flashcards
The production process
Inputs – transformation – outputs
Job production
when production of a product meets specific customer requirements
Flow production
continuous movement of items through the production process
Productivity
the amount produced (output) for a given number of employees (input)
Improving productivity
replaces workers with capital
- recruit staff correctly initially
- appropriately train staff
- motivate staff eg financially, non financially
- invest in up to date capital
- review working practices
Just in time stock control
minimum amounts of stocks of raw materials and finished goods held by a business
Just in case stock control
holding buffer stock just in case there’s a problem/ unexpected demand
Lead time
the time between placing an order and receiving the delivery
Procurement
the whole process of managing the ordering and receipt of the goods/services in the business
Supplier
a business or individual who provides the raw materials or goods/services to a business
Factors affecting choice of supplier
- quality
- cost
- availability
- delivery
- speed
- customers
Logistics
a process which plans, implements and controls the distribution and storage of goods/services from when they are received from the supplier to customer delivery
Quality control
traditional method of checking a product/ sample of product at the end
Quality assurance
where every member of staff is responsible for quality along production line
Bespoke
A product or service that is designed and made for an individual customer.
