Business Unit 2 - Operations Management

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Define flow production
includes a assembly line, and each stage of production is carried continuously after the other
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Main features of flow production
large scale production, standardised product, included division of labour and specialisation
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Define specialisation
workers usually specialised in one task, to allow faster work
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Define division of labour
breaking a job down into small, repetitive tasks so each task can be done rapidly by machines
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Advantages of flow production
low cost per unit, very high consistency and less need to hold stocks
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Disadvantages of flow production
expensive equipment and set up costs, production problems can affect whole production line and low worker motivation
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Define lean production
aims to use fewer resources by using them more efficiently which helps being trapped by competition and rising costs
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example of lean production
Toyota was first company to adapt to lean production
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Define Kaizen
means continuous improvement and encourages workers to make suggestions for improvement which leads to efficiency
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Define Just In Time Manufacturing
ordering supplies so that they arrive just when they are need and only making goods when ordered by customers
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Advantages of JIT manufacturing
cuts stock holding costs+increases factory space, close contact with suppliers 24/7 leads to more effluence supplier relationship, capital used for paying stocks can be used more efficiently
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Disadvantages of JIT manufacturing
costs of ordering supplies may increase as orders are so small, requires very reliable suppliers+transport system
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Define lean design
producing new designs as quickly as possible, time saving approach is easier than it used to be due to CAD programmes
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benefits of business growth
greater market share, increased revenue, reduction in unit costs, big firms are more safe as hard to takeover and can lead to ECONOMIES OF SCALE
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Define economies of scale
reasons why production costs of each item fall as a firm expands
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Define diseconomies of scale
the reason why production costs of each time rise as a firm expands
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Main economies of scale, EXPLAIN EACH ONE
bulk buying or purchasing economies, technical economies, specialist managers, finical economies
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Main diseconomies of scale, EXPLAIN EACH ONE
poor communication, poor motivation and poor co-ordination
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Define a quality product
goods or service that meets customers expectations and is therefore fit for purpose
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Main causes of Quality problems, EXPLAIN EACH ONE
poorly motivated workers, no clear responsibility for quality, lack of consistency and outsourcing
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Define Quality standards
expectations of customers expressed in terms of the minimum acceptable production or service standards
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Define Quality Assurance
setting and trying to meet quality standards
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Methods of Maintaining Quality
(setting agreed quality standards) once customer expectations are known min quality standards have to be set. Q Standards are shown in shops to give customer awareness of what the product expectations should be
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Example of maintaining quality
Fast Food Delivery= max time for delivery to be made, Q Assurance involves recording delivery time to see if these were within the max level set.
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Define Total Quality Management (TQM)
an approach to quality that aims to involve al employees in the quality improvement process
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Example of TQM taking place
Truck Driver dropping of supplies to retailer= goods must be handled carefully+loaded in correct order and truck driver has to face retailer about damaged goods or wrong goods delivered
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Card 2


Main features of flow production


large scale production, standardised product, included division of labour and specialisation

Card 3


Define specialisation


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Card 4


Define division of labour


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Card 5


Advantages of flow production


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