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A Level Business > Unit 4 > Flashcards

Unit 4 Flashcards

(83 cards)

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1
Q

what is operations

A

operations is responsible for the actual production of the physical goods or services

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2
Q

what are examples of inputs

A

manpower and machinery

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3
Q

describe how operations work

A

consists of converting resources and labour(inputs) into goods and services(outputs) = so in the end its added value

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4
Q

what is productivity

A

how much units are made
the higher productivity means there are lower productivity costs per unit

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5
Q

what is efficiency

A

minimising waste and costs when producing goods and services, utilises the least amount of resources for maximum output

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6
Q

what is production

A

this is how raw materials are turned into a product

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7
Q

what are some operational objectives(name 4)

A

make process efficient and time saving
have more automation in production
reduce costs
improve quality

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8
Q

what is output

A

amount of something produced by a person or machine

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9
Q

What is a unit

A

An item or a product

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10
Q

What are resources

A

What is needed to make a product e.g labour,materials,machines

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11
Q

What is the calculation for unit cost

A

Total costs ➗ total output

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12
Q

What is the calculation for labour products costs

A

Output ➗ number of staff

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13
Q

What is labour productivity

A

The amount of output produced by each employee

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14
Q

What is the calculation for productivity per worker

A

Total output per time period ➗ number of employees at work

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15
Q

What factors influence productivity

A

Amount of capital e.g tool machines
Technology e.g IT systems
Human capital e.g skill level

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16
Q

What factors affect efficiency

A

Tech
Labour
Outsourcing
Service industries

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17
Q

What does labour intensive mean

A

Using high human intervention e.g services, people on sight

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18
Q

What does capital intensive mean

A

Relies heavily on automation and machinery

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19
Q

What is capacity

A

Capacity is a percentage of the business capacity that is actually being used

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20
Q

What is the calculation for capacity utilisation

A

Actual output ➗ max output X 100

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21
Q

What is the ideal percentage capacity utilisation

A

90%

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22
Q

Why is 90% the ideal capacity

A

Allows for a spike in demand
90% is a good efficient number

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23
Q

what is lean production

A

an approach to management that focuses on cutting waste whilst ensuring quality

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24
Q

what is kaizen

A

constantly introducing small incremental changes to improve quality or efficiency( continuous improvement)

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25
what does Kaizen depend on
skillset of workers staff being motivated to improve relies on democratic leadership requires everyone to participate
26
what is good about continuous improvement
more energy efficient less waste reduced risk better customer service higher capacity utilisation
27
what is just in time JIT
aims to minimise stock holding and stock wastage the stock arrives just in time for manufacturing
28
what does JIT depend on
suppliers as they need to be reliable and up to date predictability of sales forecast prediction must be accurate amount of competition scarcity of stock
29
what is over utilisation
trying to produce more than its capital equipment and systems where designed for
30
what is a pro of working at 90%
unit costs are lower therefore more competitive balance utilisation with flexibility
31
what is a con of working at 90%
might not be enough to meet flexibility to meet surges in demand
32
what are the costs of JIT
warehouse and rent costs temperature costs opportunity cost before you use or sell its a cost
33
how can you reduce overall capacity
sell off fixed assets can relocate to reduce size of capacity however new locations may be too small
34
how do you increase usage /output
discounts on certain days promotions and offers when demands are low make more products
35
what is outsourcing
third party doing usage on your behalf giving full control
36
what is JIC
produce first then try sell the stock
37
what is redeployment
working in another department or brand where needed have to have a skillset to be redeployed
38
what are quality circles
a small group of employees that must meet regularly to look at how quality can be improved the feedback recommendations go to management
39
what are some cons of quality circles
can conflict in opinions cant take all ideas into consideration takes time off work so someone has to cover shift leadership might not accept feedback
40
what are some pros of quality circles
can keep retention high as voices are heard save management time its free to hold these circles getting feedback for free
41
describe job production
making products individually specially designed by specialists one off so premium price is charged e.g wedding dresses and cakes
42
describe batch production
making a large volume of products at one time semi skilled workforce some flexibility e.g bakerys, cars
43
describe flow production
continuous flow of production in an assembly line low skill workforce high automation process e.g newspapers
44
what is Cell production
production line is reorganised into small teams(cells) each cell develops responsibility for significant part of finished product
45
how do lean cells work
recues waste, shorter distance to roles, steps placed in sequential order
46
what are some pros of cell production
saves time of productivity and efficiency product focused team environment immediate feedback
47
what are cons of cell production
depends on workers co operability with other employees relies on team environment being good relies on each cell doing job well
48
what is TQM
TQM puts quality at the heart of everything a business does all employees are involved and responsible for their work and their team work
49
what do customers want with a product
is'nt faulty reliable safe can be repaired if necessary
50
what do customers want with a service
good customer service after sales service want to buy from a brand with good reputation
51
what is warranty
the guarantee by the producer that it will repair or replace any faults for a specific time period
52
what is quality control
checking product at the end of the production process if it doesnt meet quality then item is thrown away
53
what are pros of quality control
quicker specially trained and skilled empoyees cheaper than traning employees
54
what are cons of quality control
waste high costs risk that customer receives faulty products
55
what is quality assurance
everyone is accountable for every stage of production process and every employee is skilled
56
what are pros of quality assurance
less waste less defects reduce costs improves staff motivation
57
what are cons of quality assurance
more costs slower and time consuming employee accountable everyone needs to see bigger picture
58
what is stock
stock is a term to describe everything from raw components to finished goods. it is before a sale is completed
59
what is stock control
process that makes sure optimum levels of stock is held so demand can be met whilst managing costs
60
what is buffer stock
minimum stock level that the business decide
61
what are cons of using stock graphs
relies on stock being used relies on reliable info from suppliers business dont work in a straight line only shows one type of product being sold
61
what is lead time
the time it takes for stock arrive
61
what is pro using stock graphs
allows to calculate re order time business decide buffer and the max stock level and help manage associated cash flow easy to read and interpret
62
what is re order level
when stock is re ordered ( can be automatically)
63
what is a pro of having buffer stock
never run out of stock can meet surges of demand
64
what is a con of having buffer stock
ties up cash which could have been used elsewhere higher storage costs stock can perish if its a perishable good
65
what does a business want from a supplier
fit for purpose products, closer location, on time, exclusive and trustworthy, consistency of stock
66
what are inco terms
who was responsible for what e,g when a product leaves a warehouse not responsible anymore
67
what does dependability mean
punctuality, reliability, durability
68
how can a business improve flexibility
batch production, large product portfolio, skilled workforce, communication
69
what is Mass customization
use of CAM to produce individually tailored output to customers on a large scale e.g macbooks and ford have a choice of customization
70
what are some pros of mass customization
increased operational flexibility less waste stimulating work environment
71
what are some cons of mass customization
requires CAM , IT costs, CAD costs, labour costs
72
what does capacity depend on
number of employees and the skillset tech that the business have e.g machinery and its state kind of production process amount of investment in the business
73
what is under utilisation
business not getting use from machines and facilities they have paid for
74
why does under utilisation increase costs
this increases costs because it causes fixed costs to be spread over fewer units of output
75
how does a business deal with under utilisation
try to increase demand change price or distribution change marketing mix and promotion sun contracting work for other firms reduce capacity(nationalisation)
76
what does labour productivity measure
how much each employee produces
77
what are ways to increase labour productivity
improving worker motivation e.g bonuses and reward schemes training to make workers more productive new technology to increase speed at which they are working at
78
what are some advantages of capital intensive production
cheaper than manual labour machinery is often more precise and keeps consistent quality levels machinery can work 24/7 machinery easier to manage than people
79
what are some disadvantages of capital intensive production
high set up costs machines only suited to one task which means they are inflexible machinery can break down and can have delays workers might fear getting displaced to motivation decreases
80
what are some advantages of labour intensive
people are flexible and retrained cheaper for small scale production low cost labour is available and cheaper workers can solve most problems and can suggest how to improve quality
81
what are some disadvantages of labour intensive
harder to manage people than machines people can be unreliable e.g they can get sick people cant work without breaks or holidays wage increase means labour costs increase over time

A Level Business (8 decks)

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