operations national 4/5 business management 2014/2015
TRANSCRIPT
OPERATIONSOPERATIONS
National 45 Business Management
20142015
Learning Intentions0 What is operations0 Input process output0 Choosing a suitable supplier0 Factors affecting choice of supplier0 Management of stock0 Problems of too littletoo much stock0 Methods of production ndash job batch flow0 Advantages and disadvantages of each method0 Just-in-time production0 Quality ndash Quality Control Quality Management0 Ethical and environmental0 Effect of technology (throughout unit)
What is Operations
0 Everyone has needs and wants These can be goods or services
0 The operations area of the business is the manufacture of goodsproducts ie the transfer of raw materials into a finished article offered for sale
0 This is sometimes called Production
Operations
Factors of Production
Manufacturing
Finished product and distribution
Customer
INPUT
PROCESS
OUTPUT
Task
All production involves InputsProcessesOutputs For each of the following businesses suggest 3 Inputs 3 Processes and 3 Outputs
manufacturer of birthday cards
manufacturer of jam
a wedding photographer
Role of Operations
0 Making products This can involve people or machinery
0 Satisfying customers by making products that they want
0 Working with suppliers to ensure raw materials are available at the correct time
0 Managing levels of stock to make sure nothing runs out
Choosing a supplier
0A business has to buy raw materials from a supplier to be able to make something
Task
Think of a purchase you have made recently Why did you choose to buy it from a particular shopwebsite
Task
In pairs think of a local business
Discuss factors they would have to consider in choosing the right supplier
Make a list of 3 factors and why they are important if the business is to be successful
Factors to consider0 Price - the price charged by a supplier for raw
materials A cheaper price will reduce costs increase profits and improve cash flow
0 Quality ndash how good the raw materials are This will affect the quality of the finished product Low quality may lead to higher wastage
0 Lead timedelivery time ndash how long it takes to receive the raw materials after ordering Delays may mean production has to stop Some raw materials are perishable
Factors to consider
0 Quantity ndash how much is required Must be enough for production to continue
0 Reputation and reliability ndash will the supplier deliver when they say they will Do they have a good reputation
0 Location ndash how far away is the supplier located Deliveries may take longer and transport costs need to be considered
Management of Stock0 The purpose of holding stocks is to have a supply of
goods (raw materials) available for the production process and for distribution (finished goods) to customers when needed
3 main types of stock0 Raw Materials ndash purchases
from suppliers waiting to be used
0 Work in Progress ndash products that are currently being made (semi-finished goods)
0 Finished Goods ndash completed products waiting to be distributed
Task
Protecting stocks of raw materials and finished goods is very important For each of the following items suggest one example of what could happen if an organisationrsquos stock control system was poor
i frozen fishii mobile phonesiii fresh vegetablesiv new carsv printed booksvi jeans
Costsrisks of holding stock0 Costs money to store
stockWarehouseLightingSecurityInsurance
0 Risks areStock has a higher risk of
being stolenStock has a higher risk of
going out of dateRisk that the money
value of stock will fall eg due to changes in fashion
Too little stock
0 Production might stop0 Customers may not receive their orders on
time0 Any sudden increase in demand cannot be
met
Too much stock
0 Costs money to store stock ie warehouse lighting security insurance
0 Money which is tied up in stock might be put to better use
0 If social factors change (trendsfashion) the stock might be wasted
Technology in stock management
0 Most businesses have a computerised system that records how much stock there is at any one time eg using EPOS or a spreadsheet package
0 Internet is used to purchase raw materials
Methods of ProductionBusinesses must decide which method of production to use to make their products There are different factors to think about
0The actual product being made0The quantity of the product0How to ensure the product is of a high quality0The way stock is managed0The resources available (eg staff and machinery)
Methods of Production
0Job Production
0Batch Production
0Flow Production
Job Production0This is when a product is made individually to
meet specific orders from customers
0Often involves skilled labour or craftspeople
0It is labour intensive
Advantages and Disadvantages
ADVANTAGES
0It meets the customersrsquo needs and is produced to their own specifications
0High customer satisfaction
0High prices can be charged as product is unique
0More motivating for workers as they see the product through all stages of production
DISADVANTAGES
0High labour costs as the process is labour intensive
0Specialist tools and equipment may be needed which can be expensive
0Costs are not recovered until the completion of the project
Batch Production0This is where a group of identical products are
made at one time All products in the batch move onto the next stage of production at the same time
0Machinery and equipment can be cleaned andor changed between batches
0Workers usually specialise in one job so become skilled in one area
Advantages and Disadvantages
ADVANTAGES
0Batches can be changed to meet the requirements of the customer
0Raw materials can be bought in bulk saving money
0Less skilled workers are required as only one part of the process is completed by a particular person so reduced costs
DISADVANTAGES
0Equipment and employees are not working between batches which costs money
0Any mistakes in one item can result in the whole batch being wasted which costs money and wastes time
0Workers motivation is reduced because they do not see the process from start to finish
Flow Production
0This is the continuous production of the same good
0It is used for making large quantities of an identical product
0Economies of scale can be made with this process
Advantages and Disadvantages
ADVANTAGES
0Economies of scales can be met due to the large production of goods
DISADVANTAGES
0A large amount of money is required for set up costs0Each product is identical0Lack of motivation for workers because they only work on a small part of the process
Flow production example
Car manufacturing uses flow production
Chassis of car
Engine Gearbox Seats Outer Shell
Dashboard and wiring
Windscreen and windows
Division of Labour
0Both batch and flow production use division of labour which means that each worker specialises in one job on the production line This makes the job very repetitive and boring
0Many of these jobs have been replaced by machinery This has caused unemployment for unskilled workers
Labour Intensive
0 Products made using mainly human effort
Advantages Disadvantages
Employees can be creative It is expensive to recruit and train employees
No need for expensive equipment Specialist skills require time to learn
Unique products can be made The quality of work can vary
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Learning Intentions0 What is operations0 Input process output0 Choosing a suitable supplier0 Factors affecting choice of supplier0 Management of stock0 Problems of too littletoo much stock0 Methods of production ndash job batch flow0 Advantages and disadvantages of each method0 Just-in-time production0 Quality ndash Quality Control Quality Management0 Ethical and environmental0 Effect of technology (throughout unit)
What is Operations
0 Everyone has needs and wants These can be goods or services
0 The operations area of the business is the manufacture of goodsproducts ie the transfer of raw materials into a finished article offered for sale
0 This is sometimes called Production
Operations
Factors of Production
Manufacturing
Finished product and distribution
Customer
INPUT
PROCESS
OUTPUT
Task
All production involves InputsProcessesOutputs For each of the following businesses suggest 3 Inputs 3 Processes and 3 Outputs
manufacturer of birthday cards
manufacturer of jam
a wedding photographer
Role of Operations
0 Making products This can involve people or machinery
0 Satisfying customers by making products that they want
0 Working with suppliers to ensure raw materials are available at the correct time
0 Managing levels of stock to make sure nothing runs out
Choosing a supplier
0A business has to buy raw materials from a supplier to be able to make something
Task
Think of a purchase you have made recently Why did you choose to buy it from a particular shopwebsite
Task
In pairs think of a local business
Discuss factors they would have to consider in choosing the right supplier
Make a list of 3 factors and why they are important if the business is to be successful
Factors to consider0 Price - the price charged by a supplier for raw
materials A cheaper price will reduce costs increase profits and improve cash flow
0 Quality ndash how good the raw materials are This will affect the quality of the finished product Low quality may lead to higher wastage
0 Lead timedelivery time ndash how long it takes to receive the raw materials after ordering Delays may mean production has to stop Some raw materials are perishable
Factors to consider
0 Quantity ndash how much is required Must be enough for production to continue
0 Reputation and reliability ndash will the supplier deliver when they say they will Do they have a good reputation
0 Location ndash how far away is the supplier located Deliveries may take longer and transport costs need to be considered
Management of Stock0 The purpose of holding stocks is to have a supply of
goods (raw materials) available for the production process and for distribution (finished goods) to customers when needed
3 main types of stock0 Raw Materials ndash purchases
from suppliers waiting to be used
0 Work in Progress ndash products that are currently being made (semi-finished goods)
0 Finished Goods ndash completed products waiting to be distributed
Task
Protecting stocks of raw materials and finished goods is very important For each of the following items suggest one example of what could happen if an organisationrsquos stock control system was poor
i frozen fishii mobile phonesiii fresh vegetablesiv new carsv printed booksvi jeans
Costsrisks of holding stock0 Costs money to store
stockWarehouseLightingSecurityInsurance
0 Risks areStock has a higher risk of
being stolenStock has a higher risk of
going out of dateRisk that the money
value of stock will fall eg due to changes in fashion
Too little stock
0 Production might stop0 Customers may not receive their orders on
time0 Any sudden increase in demand cannot be
met
Too much stock
0 Costs money to store stock ie warehouse lighting security insurance
0 Money which is tied up in stock might be put to better use
0 If social factors change (trendsfashion) the stock might be wasted
Technology in stock management
0 Most businesses have a computerised system that records how much stock there is at any one time eg using EPOS or a spreadsheet package
0 Internet is used to purchase raw materials
Methods of ProductionBusinesses must decide which method of production to use to make their products There are different factors to think about
0The actual product being made0The quantity of the product0How to ensure the product is of a high quality0The way stock is managed0The resources available (eg staff and machinery)
Methods of Production
0Job Production
0Batch Production
0Flow Production
Job Production0This is when a product is made individually to
meet specific orders from customers
0Often involves skilled labour or craftspeople
0It is labour intensive
Advantages and Disadvantages
ADVANTAGES
0It meets the customersrsquo needs and is produced to their own specifications
0High customer satisfaction
0High prices can be charged as product is unique
0More motivating for workers as they see the product through all stages of production
DISADVANTAGES
0High labour costs as the process is labour intensive
0Specialist tools and equipment may be needed which can be expensive
0Costs are not recovered until the completion of the project
Batch Production0This is where a group of identical products are
made at one time All products in the batch move onto the next stage of production at the same time
0Machinery and equipment can be cleaned andor changed between batches
0Workers usually specialise in one job so become skilled in one area
Advantages and Disadvantages
ADVANTAGES
0Batches can be changed to meet the requirements of the customer
0Raw materials can be bought in bulk saving money
0Less skilled workers are required as only one part of the process is completed by a particular person so reduced costs
DISADVANTAGES
0Equipment and employees are not working between batches which costs money
0Any mistakes in one item can result in the whole batch being wasted which costs money and wastes time
0Workers motivation is reduced because they do not see the process from start to finish
Flow Production
0This is the continuous production of the same good
0It is used for making large quantities of an identical product
0Economies of scale can be made with this process
Advantages and Disadvantages
ADVANTAGES
0Economies of scales can be met due to the large production of goods
DISADVANTAGES
0A large amount of money is required for set up costs0Each product is identical0Lack of motivation for workers because they only work on a small part of the process
Flow production example
Car manufacturing uses flow production
Chassis of car
Engine Gearbox Seats Outer Shell
Dashboard and wiring
Windscreen and windows
Division of Labour
0Both batch and flow production use division of labour which means that each worker specialises in one job on the production line This makes the job very repetitive and boring
0Many of these jobs have been replaced by machinery This has caused unemployment for unskilled workers
Labour Intensive
0 Products made using mainly human effort
Advantages Disadvantages
Employees can be creative It is expensive to recruit and train employees
No need for expensive equipment Specialist skills require time to learn
Unique products can be made The quality of work can vary
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
What is Operations
0 Everyone has needs and wants These can be goods or services
0 The operations area of the business is the manufacture of goodsproducts ie the transfer of raw materials into a finished article offered for sale
0 This is sometimes called Production
Operations
Factors of Production
Manufacturing
Finished product and distribution
Customer
INPUT
PROCESS
OUTPUT
Task
All production involves InputsProcessesOutputs For each of the following businesses suggest 3 Inputs 3 Processes and 3 Outputs
manufacturer of birthday cards
manufacturer of jam
a wedding photographer
Role of Operations
0 Making products This can involve people or machinery
0 Satisfying customers by making products that they want
0 Working with suppliers to ensure raw materials are available at the correct time
0 Managing levels of stock to make sure nothing runs out
Choosing a supplier
0A business has to buy raw materials from a supplier to be able to make something
Task
Think of a purchase you have made recently Why did you choose to buy it from a particular shopwebsite
Task
In pairs think of a local business
Discuss factors they would have to consider in choosing the right supplier
Make a list of 3 factors and why they are important if the business is to be successful
Factors to consider0 Price - the price charged by a supplier for raw
materials A cheaper price will reduce costs increase profits and improve cash flow
0 Quality ndash how good the raw materials are This will affect the quality of the finished product Low quality may lead to higher wastage
0 Lead timedelivery time ndash how long it takes to receive the raw materials after ordering Delays may mean production has to stop Some raw materials are perishable
Factors to consider
0 Quantity ndash how much is required Must be enough for production to continue
0 Reputation and reliability ndash will the supplier deliver when they say they will Do they have a good reputation
0 Location ndash how far away is the supplier located Deliveries may take longer and transport costs need to be considered
Management of Stock0 The purpose of holding stocks is to have a supply of
goods (raw materials) available for the production process and for distribution (finished goods) to customers when needed
3 main types of stock0 Raw Materials ndash purchases
from suppliers waiting to be used
0 Work in Progress ndash products that are currently being made (semi-finished goods)
0 Finished Goods ndash completed products waiting to be distributed
Task
Protecting stocks of raw materials and finished goods is very important For each of the following items suggest one example of what could happen if an organisationrsquos stock control system was poor
i frozen fishii mobile phonesiii fresh vegetablesiv new carsv printed booksvi jeans
Costsrisks of holding stock0 Costs money to store
stockWarehouseLightingSecurityInsurance
0 Risks areStock has a higher risk of
being stolenStock has a higher risk of
going out of dateRisk that the money
value of stock will fall eg due to changes in fashion
Too little stock
0 Production might stop0 Customers may not receive their orders on
time0 Any sudden increase in demand cannot be
met
Too much stock
0 Costs money to store stock ie warehouse lighting security insurance
0 Money which is tied up in stock might be put to better use
0 If social factors change (trendsfashion) the stock might be wasted
Technology in stock management
0 Most businesses have a computerised system that records how much stock there is at any one time eg using EPOS or a spreadsheet package
0 Internet is used to purchase raw materials
Methods of ProductionBusinesses must decide which method of production to use to make their products There are different factors to think about
0The actual product being made0The quantity of the product0How to ensure the product is of a high quality0The way stock is managed0The resources available (eg staff and machinery)
Methods of Production
0Job Production
0Batch Production
0Flow Production
Job Production0This is when a product is made individually to
meet specific orders from customers
0Often involves skilled labour or craftspeople
0It is labour intensive
Advantages and Disadvantages
ADVANTAGES
0It meets the customersrsquo needs and is produced to their own specifications
0High customer satisfaction
0High prices can be charged as product is unique
0More motivating for workers as they see the product through all stages of production
DISADVANTAGES
0High labour costs as the process is labour intensive
0Specialist tools and equipment may be needed which can be expensive
0Costs are not recovered until the completion of the project
Batch Production0This is where a group of identical products are
made at one time All products in the batch move onto the next stage of production at the same time
0Machinery and equipment can be cleaned andor changed between batches
0Workers usually specialise in one job so become skilled in one area
Advantages and Disadvantages
ADVANTAGES
0Batches can be changed to meet the requirements of the customer
0Raw materials can be bought in bulk saving money
0Less skilled workers are required as only one part of the process is completed by a particular person so reduced costs
DISADVANTAGES
0Equipment and employees are not working between batches which costs money
0Any mistakes in one item can result in the whole batch being wasted which costs money and wastes time
0Workers motivation is reduced because they do not see the process from start to finish
Flow Production
0This is the continuous production of the same good
0It is used for making large quantities of an identical product
0Economies of scale can be made with this process
Advantages and Disadvantages
ADVANTAGES
0Economies of scales can be met due to the large production of goods
DISADVANTAGES
0A large amount of money is required for set up costs0Each product is identical0Lack of motivation for workers because they only work on a small part of the process
Flow production example
Car manufacturing uses flow production
Chassis of car
Engine Gearbox Seats Outer Shell
Dashboard and wiring
Windscreen and windows
Division of Labour
0Both batch and flow production use division of labour which means that each worker specialises in one job on the production line This makes the job very repetitive and boring
0Many of these jobs have been replaced by machinery This has caused unemployment for unskilled workers
Labour Intensive
0 Products made using mainly human effort
Advantages Disadvantages
Employees can be creative It is expensive to recruit and train employees
No need for expensive equipment Specialist skills require time to learn
Unique products can be made The quality of work can vary
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Operations
Factors of Production
Manufacturing
Finished product and distribution
Customer
INPUT
PROCESS
OUTPUT
Task
All production involves InputsProcessesOutputs For each of the following businesses suggest 3 Inputs 3 Processes and 3 Outputs
manufacturer of birthday cards
manufacturer of jam
a wedding photographer
Role of Operations
0 Making products This can involve people or machinery
0 Satisfying customers by making products that they want
0 Working with suppliers to ensure raw materials are available at the correct time
0 Managing levels of stock to make sure nothing runs out
Choosing a supplier
0A business has to buy raw materials from a supplier to be able to make something
Task
Think of a purchase you have made recently Why did you choose to buy it from a particular shopwebsite
Task
In pairs think of a local business
Discuss factors they would have to consider in choosing the right supplier
Make a list of 3 factors and why they are important if the business is to be successful
Factors to consider0 Price - the price charged by a supplier for raw
materials A cheaper price will reduce costs increase profits and improve cash flow
0 Quality ndash how good the raw materials are This will affect the quality of the finished product Low quality may lead to higher wastage
0 Lead timedelivery time ndash how long it takes to receive the raw materials after ordering Delays may mean production has to stop Some raw materials are perishable
Factors to consider
0 Quantity ndash how much is required Must be enough for production to continue
0 Reputation and reliability ndash will the supplier deliver when they say they will Do they have a good reputation
0 Location ndash how far away is the supplier located Deliveries may take longer and transport costs need to be considered
Management of Stock0 The purpose of holding stocks is to have a supply of
goods (raw materials) available for the production process and for distribution (finished goods) to customers when needed
3 main types of stock0 Raw Materials ndash purchases
from suppliers waiting to be used
0 Work in Progress ndash products that are currently being made (semi-finished goods)
0 Finished Goods ndash completed products waiting to be distributed
Task
Protecting stocks of raw materials and finished goods is very important For each of the following items suggest one example of what could happen if an organisationrsquos stock control system was poor
i frozen fishii mobile phonesiii fresh vegetablesiv new carsv printed booksvi jeans
Costsrisks of holding stock0 Costs money to store
stockWarehouseLightingSecurityInsurance
0 Risks areStock has a higher risk of
being stolenStock has a higher risk of
going out of dateRisk that the money
value of stock will fall eg due to changes in fashion
Too little stock
0 Production might stop0 Customers may not receive their orders on
time0 Any sudden increase in demand cannot be
met
Too much stock
0 Costs money to store stock ie warehouse lighting security insurance
0 Money which is tied up in stock might be put to better use
0 If social factors change (trendsfashion) the stock might be wasted
Technology in stock management
0 Most businesses have a computerised system that records how much stock there is at any one time eg using EPOS or a spreadsheet package
0 Internet is used to purchase raw materials
Methods of ProductionBusinesses must decide which method of production to use to make their products There are different factors to think about
0The actual product being made0The quantity of the product0How to ensure the product is of a high quality0The way stock is managed0The resources available (eg staff and machinery)
Methods of Production
0Job Production
0Batch Production
0Flow Production
Job Production0This is when a product is made individually to
meet specific orders from customers
0Often involves skilled labour or craftspeople
0It is labour intensive
Advantages and Disadvantages
ADVANTAGES
0It meets the customersrsquo needs and is produced to their own specifications
0High customer satisfaction
0High prices can be charged as product is unique
0More motivating for workers as they see the product through all stages of production
DISADVANTAGES
0High labour costs as the process is labour intensive
0Specialist tools and equipment may be needed which can be expensive
0Costs are not recovered until the completion of the project
Batch Production0This is where a group of identical products are
made at one time All products in the batch move onto the next stage of production at the same time
0Machinery and equipment can be cleaned andor changed between batches
0Workers usually specialise in one job so become skilled in one area
Advantages and Disadvantages
ADVANTAGES
0Batches can be changed to meet the requirements of the customer
0Raw materials can be bought in bulk saving money
0Less skilled workers are required as only one part of the process is completed by a particular person so reduced costs
DISADVANTAGES
0Equipment and employees are not working between batches which costs money
0Any mistakes in one item can result in the whole batch being wasted which costs money and wastes time
0Workers motivation is reduced because they do not see the process from start to finish
Flow Production
0This is the continuous production of the same good
0It is used for making large quantities of an identical product
0Economies of scale can be made with this process
Advantages and Disadvantages
ADVANTAGES
0Economies of scales can be met due to the large production of goods
DISADVANTAGES
0A large amount of money is required for set up costs0Each product is identical0Lack of motivation for workers because they only work on a small part of the process
Flow production example
Car manufacturing uses flow production
Chassis of car
Engine Gearbox Seats Outer Shell
Dashboard and wiring
Windscreen and windows
Division of Labour
0Both batch and flow production use division of labour which means that each worker specialises in one job on the production line This makes the job very repetitive and boring
0Many of these jobs have been replaced by machinery This has caused unemployment for unskilled workers
Labour Intensive
0 Products made using mainly human effort
Advantages Disadvantages
Employees can be creative It is expensive to recruit and train employees
No need for expensive equipment Specialist skills require time to learn
Unique products can be made The quality of work can vary
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Task
All production involves InputsProcessesOutputs For each of the following businesses suggest 3 Inputs 3 Processes and 3 Outputs
manufacturer of birthday cards
manufacturer of jam
a wedding photographer
Role of Operations
0 Making products This can involve people or machinery
0 Satisfying customers by making products that they want
0 Working with suppliers to ensure raw materials are available at the correct time
0 Managing levels of stock to make sure nothing runs out
Choosing a supplier
0A business has to buy raw materials from a supplier to be able to make something
Task
Think of a purchase you have made recently Why did you choose to buy it from a particular shopwebsite
Task
In pairs think of a local business
Discuss factors they would have to consider in choosing the right supplier
Make a list of 3 factors and why they are important if the business is to be successful
Factors to consider0 Price - the price charged by a supplier for raw
materials A cheaper price will reduce costs increase profits and improve cash flow
0 Quality ndash how good the raw materials are This will affect the quality of the finished product Low quality may lead to higher wastage
0 Lead timedelivery time ndash how long it takes to receive the raw materials after ordering Delays may mean production has to stop Some raw materials are perishable
Factors to consider
0 Quantity ndash how much is required Must be enough for production to continue
0 Reputation and reliability ndash will the supplier deliver when they say they will Do they have a good reputation
0 Location ndash how far away is the supplier located Deliveries may take longer and transport costs need to be considered
Management of Stock0 The purpose of holding stocks is to have a supply of
goods (raw materials) available for the production process and for distribution (finished goods) to customers when needed
3 main types of stock0 Raw Materials ndash purchases
from suppliers waiting to be used
0 Work in Progress ndash products that are currently being made (semi-finished goods)
0 Finished Goods ndash completed products waiting to be distributed
Task
Protecting stocks of raw materials and finished goods is very important For each of the following items suggest one example of what could happen if an organisationrsquos stock control system was poor
i frozen fishii mobile phonesiii fresh vegetablesiv new carsv printed booksvi jeans
Costsrisks of holding stock0 Costs money to store
stockWarehouseLightingSecurityInsurance
0 Risks areStock has a higher risk of
being stolenStock has a higher risk of
going out of dateRisk that the money
value of stock will fall eg due to changes in fashion
Too little stock
0 Production might stop0 Customers may not receive their orders on
time0 Any sudden increase in demand cannot be
met
Too much stock
0 Costs money to store stock ie warehouse lighting security insurance
0 Money which is tied up in stock might be put to better use
0 If social factors change (trendsfashion) the stock might be wasted
Technology in stock management
0 Most businesses have a computerised system that records how much stock there is at any one time eg using EPOS or a spreadsheet package
0 Internet is used to purchase raw materials
Methods of ProductionBusinesses must decide which method of production to use to make their products There are different factors to think about
0The actual product being made0The quantity of the product0How to ensure the product is of a high quality0The way stock is managed0The resources available (eg staff and machinery)
Methods of Production
0Job Production
0Batch Production
0Flow Production
Job Production0This is when a product is made individually to
meet specific orders from customers
0Often involves skilled labour or craftspeople
0It is labour intensive
Advantages and Disadvantages
ADVANTAGES
0It meets the customersrsquo needs and is produced to their own specifications
0High customer satisfaction
0High prices can be charged as product is unique
0More motivating for workers as they see the product through all stages of production
DISADVANTAGES
0High labour costs as the process is labour intensive
0Specialist tools and equipment may be needed which can be expensive
0Costs are not recovered until the completion of the project
Batch Production0This is where a group of identical products are
made at one time All products in the batch move onto the next stage of production at the same time
0Machinery and equipment can be cleaned andor changed between batches
0Workers usually specialise in one job so become skilled in one area
Advantages and Disadvantages
ADVANTAGES
0Batches can be changed to meet the requirements of the customer
0Raw materials can be bought in bulk saving money
0Less skilled workers are required as only one part of the process is completed by a particular person so reduced costs
DISADVANTAGES
0Equipment and employees are not working between batches which costs money
0Any mistakes in one item can result in the whole batch being wasted which costs money and wastes time
0Workers motivation is reduced because they do not see the process from start to finish
Flow Production
0This is the continuous production of the same good
0It is used for making large quantities of an identical product
0Economies of scale can be made with this process
Advantages and Disadvantages
ADVANTAGES
0Economies of scales can be met due to the large production of goods
DISADVANTAGES
0A large amount of money is required for set up costs0Each product is identical0Lack of motivation for workers because they only work on a small part of the process
Flow production example
Car manufacturing uses flow production
Chassis of car
Engine Gearbox Seats Outer Shell
Dashboard and wiring
Windscreen and windows
Division of Labour
0Both batch and flow production use division of labour which means that each worker specialises in one job on the production line This makes the job very repetitive and boring
0Many of these jobs have been replaced by machinery This has caused unemployment for unskilled workers
Labour Intensive
0 Products made using mainly human effort
Advantages Disadvantages
Employees can be creative It is expensive to recruit and train employees
No need for expensive equipment Specialist skills require time to learn
Unique products can be made The quality of work can vary
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Role of Operations
0 Making products This can involve people or machinery
0 Satisfying customers by making products that they want
0 Working with suppliers to ensure raw materials are available at the correct time
0 Managing levels of stock to make sure nothing runs out
Choosing a supplier
0A business has to buy raw materials from a supplier to be able to make something
Task
Think of a purchase you have made recently Why did you choose to buy it from a particular shopwebsite
Task
In pairs think of a local business
Discuss factors they would have to consider in choosing the right supplier
Make a list of 3 factors and why they are important if the business is to be successful
Factors to consider0 Price - the price charged by a supplier for raw
materials A cheaper price will reduce costs increase profits and improve cash flow
0 Quality ndash how good the raw materials are This will affect the quality of the finished product Low quality may lead to higher wastage
0 Lead timedelivery time ndash how long it takes to receive the raw materials after ordering Delays may mean production has to stop Some raw materials are perishable
Factors to consider
0 Quantity ndash how much is required Must be enough for production to continue
0 Reputation and reliability ndash will the supplier deliver when they say they will Do they have a good reputation
0 Location ndash how far away is the supplier located Deliveries may take longer and transport costs need to be considered
Management of Stock0 The purpose of holding stocks is to have a supply of
goods (raw materials) available for the production process and for distribution (finished goods) to customers when needed
3 main types of stock0 Raw Materials ndash purchases
from suppliers waiting to be used
0 Work in Progress ndash products that are currently being made (semi-finished goods)
0 Finished Goods ndash completed products waiting to be distributed
Task
Protecting stocks of raw materials and finished goods is very important For each of the following items suggest one example of what could happen if an organisationrsquos stock control system was poor
i frozen fishii mobile phonesiii fresh vegetablesiv new carsv printed booksvi jeans
Costsrisks of holding stock0 Costs money to store
stockWarehouseLightingSecurityInsurance
0 Risks areStock has a higher risk of
being stolenStock has a higher risk of
going out of dateRisk that the money
value of stock will fall eg due to changes in fashion
Too little stock
0 Production might stop0 Customers may not receive their orders on
time0 Any sudden increase in demand cannot be
met
Too much stock
0 Costs money to store stock ie warehouse lighting security insurance
0 Money which is tied up in stock might be put to better use
0 If social factors change (trendsfashion) the stock might be wasted
Technology in stock management
0 Most businesses have a computerised system that records how much stock there is at any one time eg using EPOS or a spreadsheet package
0 Internet is used to purchase raw materials
Methods of ProductionBusinesses must decide which method of production to use to make their products There are different factors to think about
0The actual product being made0The quantity of the product0How to ensure the product is of a high quality0The way stock is managed0The resources available (eg staff and machinery)
Methods of Production
0Job Production
0Batch Production
0Flow Production
Job Production0This is when a product is made individually to
meet specific orders from customers
0Often involves skilled labour or craftspeople
0It is labour intensive
Advantages and Disadvantages
ADVANTAGES
0It meets the customersrsquo needs and is produced to their own specifications
0High customer satisfaction
0High prices can be charged as product is unique
0More motivating for workers as they see the product through all stages of production
DISADVANTAGES
0High labour costs as the process is labour intensive
0Specialist tools and equipment may be needed which can be expensive
0Costs are not recovered until the completion of the project
Batch Production0This is where a group of identical products are
made at one time All products in the batch move onto the next stage of production at the same time
0Machinery and equipment can be cleaned andor changed between batches
0Workers usually specialise in one job so become skilled in one area
Advantages and Disadvantages
ADVANTAGES
0Batches can be changed to meet the requirements of the customer
0Raw materials can be bought in bulk saving money
0Less skilled workers are required as only one part of the process is completed by a particular person so reduced costs
DISADVANTAGES
0Equipment and employees are not working between batches which costs money
0Any mistakes in one item can result in the whole batch being wasted which costs money and wastes time
0Workers motivation is reduced because they do not see the process from start to finish
Flow Production
0This is the continuous production of the same good
0It is used for making large quantities of an identical product
0Economies of scale can be made with this process
Advantages and Disadvantages
ADVANTAGES
0Economies of scales can be met due to the large production of goods
DISADVANTAGES
0A large amount of money is required for set up costs0Each product is identical0Lack of motivation for workers because they only work on a small part of the process
Flow production example
Car manufacturing uses flow production
Chassis of car
Engine Gearbox Seats Outer Shell
Dashboard and wiring
Windscreen and windows
Division of Labour
0Both batch and flow production use division of labour which means that each worker specialises in one job on the production line This makes the job very repetitive and boring
0Many of these jobs have been replaced by machinery This has caused unemployment for unskilled workers
Labour Intensive
0 Products made using mainly human effort
Advantages Disadvantages
Employees can be creative It is expensive to recruit and train employees
No need for expensive equipment Specialist skills require time to learn
Unique products can be made The quality of work can vary
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Choosing a supplier
0A business has to buy raw materials from a supplier to be able to make something
Task
Think of a purchase you have made recently Why did you choose to buy it from a particular shopwebsite
Task
In pairs think of a local business
Discuss factors they would have to consider in choosing the right supplier
Make a list of 3 factors and why they are important if the business is to be successful
Factors to consider0 Price - the price charged by a supplier for raw
materials A cheaper price will reduce costs increase profits and improve cash flow
0 Quality ndash how good the raw materials are This will affect the quality of the finished product Low quality may lead to higher wastage
0 Lead timedelivery time ndash how long it takes to receive the raw materials after ordering Delays may mean production has to stop Some raw materials are perishable
Factors to consider
0 Quantity ndash how much is required Must be enough for production to continue
0 Reputation and reliability ndash will the supplier deliver when they say they will Do they have a good reputation
0 Location ndash how far away is the supplier located Deliveries may take longer and transport costs need to be considered
Management of Stock0 The purpose of holding stocks is to have a supply of
goods (raw materials) available for the production process and for distribution (finished goods) to customers when needed
3 main types of stock0 Raw Materials ndash purchases
from suppliers waiting to be used
0 Work in Progress ndash products that are currently being made (semi-finished goods)
0 Finished Goods ndash completed products waiting to be distributed
Task
Protecting stocks of raw materials and finished goods is very important For each of the following items suggest one example of what could happen if an organisationrsquos stock control system was poor
i frozen fishii mobile phonesiii fresh vegetablesiv new carsv printed booksvi jeans
Costsrisks of holding stock0 Costs money to store
stockWarehouseLightingSecurityInsurance
0 Risks areStock has a higher risk of
being stolenStock has a higher risk of
going out of dateRisk that the money
value of stock will fall eg due to changes in fashion
Too little stock
0 Production might stop0 Customers may not receive their orders on
time0 Any sudden increase in demand cannot be
met
Too much stock
0 Costs money to store stock ie warehouse lighting security insurance
0 Money which is tied up in stock might be put to better use
0 If social factors change (trendsfashion) the stock might be wasted
Technology in stock management
0 Most businesses have a computerised system that records how much stock there is at any one time eg using EPOS or a spreadsheet package
0 Internet is used to purchase raw materials
Methods of ProductionBusinesses must decide which method of production to use to make their products There are different factors to think about
0The actual product being made0The quantity of the product0How to ensure the product is of a high quality0The way stock is managed0The resources available (eg staff and machinery)
Methods of Production
0Job Production
0Batch Production
0Flow Production
Job Production0This is when a product is made individually to
meet specific orders from customers
0Often involves skilled labour or craftspeople
0It is labour intensive
Advantages and Disadvantages
ADVANTAGES
0It meets the customersrsquo needs and is produced to their own specifications
0High customer satisfaction
0High prices can be charged as product is unique
0More motivating for workers as they see the product through all stages of production
DISADVANTAGES
0High labour costs as the process is labour intensive
0Specialist tools and equipment may be needed which can be expensive
0Costs are not recovered until the completion of the project
Batch Production0This is where a group of identical products are
made at one time All products in the batch move onto the next stage of production at the same time
0Machinery and equipment can be cleaned andor changed between batches
0Workers usually specialise in one job so become skilled in one area
Advantages and Disadvantages
ADVANTAGES
0Batches can be changed to meet the requirements of the customer
0Raw materials can be bought in bulk saving money
0Less skilled workers are required as only one part of the process is completed by a particular person so reduced costs
DISADVANTAGES
0Equipment and employees are not working between batches which costs money
0Any mistakes in one item can result in the whole batch being wasted which costs money and wastes time
0Workers motivation is reduced because they do not see the process from start to finish
Flow Production
0This is the continuous production of the same good
0It is used for making large quantities of an identical product
0Economies of scale can be made with this process
Advantages and Disadvantages
ADVANTAGES
0Economies of scales can be met due to the large production of goods
DISADVANTAGES
0A large amount of money is required for set up costs0Each product is identical0Lack of motivation for workers because they only work on a small part of the process
Flow production example
Car manufacturing uses flow production
Chassis of car
Engine Gearbox Seats Outer Shell
Dashboard and wiring
Windscreen and windows
Division of Labour
0Both batch and flow production use division of labour which means that each worker specialises in one job on the production line This makes the job very repetitive and boring
0Many of these jobs have been replaced by machinery This has caused unemployment for unskilled workers
Labour Intensive
0 Products made using mainly human effort
Advantages Disadvantages
Employees can be creative It is expensive to recruit and train employees
No need for expensive equipment Specialist skills require time to learn
Unique products can be made The quality of work can vary
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Task
In pairs think of a local business
Discuss factors they would have to consider in choosing the right supplier
Make a list of 3 factors and why they are important if the business is to be successful
Factors to consider0 Price - the price charged by a supplier for raw
materials A cheaper price will reduce costs increase profits and improve cash flow
0 Quality ndash how good the raw materials are This will affect the quality of the finished product Low quality may lead to higher wastage
0 Lead timedelivery time ndash how long it takes to receive the raw materials after ordering Delays may mean production has to stop Some raw materials are perishable
Factors to consider
0 Quantity ndash how much is required Must be enough for production to continue
0 Reputation and reliability ndash will the supplier deliver when they say they will Do they have a good reputation
0 Location ndash how far away is the supplier located Deliveries may take longer and transport costs need to be considered
Management of Stock0 The purpose of holding stocks is to have a supply of
goods (raw materials) available for the production process and for distribution (finished goods) to customers when needed
3 main types of stock0 Raw Materials ndash purchases
from suppliers waiting to be used
0 Work in Progress ndash products that are currently being made (semi-finished goods)
0 Finished Goods ndash completed products waiting to be distributed
Task
Protecting stocks of raw materials and finished goods is very important For each of the following items suggest one example of what could happen if an organisationrsquos stock control system was poor
i frozen fishii mobile phonesiii fresh vegetablesiv new carsv printed booksvi jeans
Costsrisks of holding stock0 Costs money to store
stockWarehouseLightingSecurityInsurance
0 Risks areStock has a higher risk of
being stolenStock has a higher risk of
going out of dateRisk that the money
value of stock will fall eg due to changes in fashion
Too little stock
0 Production might stop0 Customers may not receive their orders on
time0 Any sudden increase in demand cannot be
met
Too much stock
0 Costs money to store stock ie warehouse lighting security insurance
0 Money which is tied up in stock might be put to better use
0 If social factors change (trendsfashion) the stock might be wasted
Technology in stock management
0 Most businesses have a computerised system that records how much stock there is at any one time eg using EPOS or a spreadsheet package
0 Internet is used to purchase raw materials
Methods of ProductionBusinesses must decide which method of production to use to make their products There are different factors to think about
0The actual product being made0The quantity of the product0How to ensure the product is of a high quality0The way stock is managed0The resources available (eg staff and machinery)
Methods of Production
0Job Production
0Batch Production
0Flow Production
Job Production0This is when a product is made individually to
meet specific orders from customers
0Often involves skilled labour or craftspeople
0It is labour intensive
Advantages and Disadvantages
ADVANTAGES
0It meets the customersrsquo needs and is produced to their own specifications
0High customer satisfaction
0High prices can be charged as product is unique
0More motivating for workers as they see the product through all stages of production
DISADVANTAGES
0High labour costs as the process is labour intensive
0Specialist tools and equipment may be needed which can be expensive
0Costs are not recovered until the completion of the project
Batch Production0This is where a group of identical products are
made at one time All products in the batch move onto the next stage of production at the same time
0Machinery and equipment can be cleaned andor changed between batches
0Workers usually specialise in one job so become skilled in one area
Advantages and Disadvantages
ADVANTAGES
0Batches can be changed to meet the requirements of the customer
0Raw materials can be bought in bulk saving money
0Less skilled workers are required as only one part of the process is completed by a particular person so reduced costs
DISADVANTAGES
0Equipment and employees are not working between batches which costs money
0Any mistakes in one item can result in the whole batch being wasted which costs money and wastes time
0Workers motivation is reduced because they do not see the process from start to finish
Flow Production
0This is the continuous production of the same good
0It is used for making large quantities of an identical product
0Economies of scale can be made with this process
Advantages and Disadvantages
ADVANTAGES
0Economies of scales can be met due to the large production of goods
DISADVANTAGES
0A large amount of money is required for set up costs0Each product is identical0Lack of motivation for workers because they only work on a small part of the process
Flow production example
Car manufacturing uses flow production
Chassis of car
Engine Gearbox Seats Outer Shell
Dashboard and wiring
Windscreen and windows
Division of Labour
0Both batch and flow production use division of labour which means that each worker specialises in one job on the production line This makes the job very repetitive and boring
0Many of these jobs have been replaced by machinery This has caused unemployment for unskilled workers
Labour Intensive
0 Products made using mainly human effort
Advantages Disadvantages
Employees can be creative It is expensive to recruit and train employees
No need for expensive equipment Specialist skills require time to learn
Unique products can be made The quality of work can vary
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Factors to consider0 Price - the price charged by a supplier for raw
materials A cheaper price will reduce costs increase profits and improve cash flow
0 Quality ndash how good the raw materials are This will affect the quality of the finished product Low quality may lead to higher wastage
0 Lead timedelivery time ndash how long it takes to receive the raw materials after ordering Delays may mean production has to stop Some raw materials are perishable
Factors to consider
0 Quantity ndash how much is required Must be enough for production to continue
0 Reputation and reliability ndash will the supplier deliver when they say they will Do they have a good reputation
0 Location ndash how far away is the supplier located Deliveries may take longer and transport costs need to be considered
Management of Stock0 The purpose of holding stocks is to have a supply of
goods (raw materials) available for the production process and for distribution (finished goods) to customers when needed
3 main types of stock0 Raw Materials ndash purchases
from suppliers waiting to be used
0 Work in Progress ndash products that are currently being made (semi-finished goods)
0 Finished Goods ndash completed products waiting to be distributed
Task
Protecting stocks of raw materials and finished goods is very important For each of the following items suggest one example of what could happen if an organisationrsquos stock control system was poor
i frozen fishii mobile phonesiii fresh vegetablesiv new carsv printed booksvi jeans
Costsrisks of holding stock0 Costs money to store
stockWarehouseLightingSecurityInsurance
0 Risks areStock has a higher risk of
being stolenStock has a higher risk of
going out of dateRisk that the money
value of stock will fall eg due to changes in fashion
Too little stock
0 Production might stop0 Customers may not receive their orders on
time0 Any sudden increase in demand cannot be
met
Too much stock
0 Costs money to store stock ie warehouse lighting security insurance
0 Money which is tied up in stock might be put to better use
0 If social factors change (trendsfashion) the stock might be wasted
Technology in stock management
0 Most businesses have a computerised system that records how much stock there is at any one time eg using EPOS or a spreadsheet package
0 Internet is used to purchase raw materials
Methods of ProductionBusinesses must decide which method of production to use to make their products There are different factors to think about
0The actual product being made0The quantity of the product0How to ensure the product is of a high quality0The way stock is managed0The resources available (eg staff and machinery)
Methods of Production
0Job Production
0Batch Production
0Flow Production
Job Production0This is when a product is made individually to
meet specific orders from customers
0Often involves skilled labour or craftspeople
0It is labour intensive
Advantages and Disadvantages
ADVANTAGES
0It meets the customersrsquo needs and is produced to their own specifications
0High customer satisfaction
0High prices can be charged as product is unique
0More motivating for workers as they see the product through all stages of production
DISADVANTAGES
0High labour costs as the process is labour intensive
0Specialist tools and equipment may be needed which can be expensive
0Costs are not recovered until the completion of the project
Batch Production0This is where a group of identical products are
made at one time All products in the batch move onto the next stage of production at the same time
0Machinery and equipment can be cleaned andor changed between batches
0Workers usually specialise in one job so become skilled in one area
Advantages and Disadvantages
ADVANTAGES
0Batches can be changed to meet the requirements of the customer
0Raw materials can be bought in bulk saving money
0Less skilled workers are required as only one part of the process is completed by a particular person so reduced costs
DISADVANTAGES
0Equipment and employees are not working between batches which costs money
0Any mistakes in one item can result in the whole batch being wasted which costs money and wastes time
0Workers motivation is reduced because they do not see the process from start to finish
Flow Production
0This is the continuous production of the same good
0It is used for making large quantities of an identical product
0Economies of scale can be made with this process
Advantages and Disadvantages
ADVANTAGES
0Economies of scales can be met due to the large production of goods
DISADVANTAGES
0A large amount of money is required for set up costs0Each product is identical0Lack of motivation for workers because they only work on a small part of the process
Flow production example
Car manufacturing uses flow production
Chassis of car
Engine Gearbox Seats Outer Shell
Dashboard and wiring
Windscreen and windows
Division of Labour
0Both batch and flow production use division of labour which means that each worker specialises in one job on the production line This makes the job very repetitive and boring
0Many of these jobs have been replaced by machinery This has caused unemployment for unskilled workers
Labour Intensive
0 Products made using mainly human effort
Advantages Disadvantages
Employees can be creative It is expensive to recruit and train employees
No need for expensive equipment Specialist skills require time to learn
Unique products can be made The quality of work can vary
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Factors to consider
0 Quantity ndash how much is required Must be enough for production to continue
0 Reputation and reliability ndash will the supplier deliver when they say they will Do they have a good reputation
0 Location ndash how far away is the supplier located Deliveries may take longer and transport costs need to be considered
Management of Stock0 The purpose of holding stocks is to have a supply of
goods (raw materials) available for the production process and for distribution (finished goods) to customers when needed
3 main types of stock0 Raw Materials ndash purchases
from suppliers waiting to be used
0 Work in Progress ndash products that are currently being made (semi-finished goods)
0 Finished Goods ndash completed products waiting to be distributed
Task
Protecting stocks of raw materials and finished goods is very important For each of the following items suggest one example of what could happen if an organisationrsquos stock control system was poor
i frozen fishii mobile phonesiii fresh vegetablesiv new carsv printed booksvi jeans
Costsrisks of holding stock0 Costs money to store
stockWarehouseLightingSecurityInsurance
0 Risks areStock has a higher risk of
being stolenStock has a higher risk of
going out of dateRisk that the money
value of stock will fall eg due to changes in fashion
Too little stock
0 Production might stop0 Customers may not receive their orders on
time0 Any sudden increase in demand cannot be
met
Too much stock
0 Costs money to store stock ie warehouse lighting security insurance
0 Money which is tied up in stock might be put to better use
0 If social factors change (trendsfashion) the stock might be wasted
Technology in stock management
0 Most businesses have a computerised system that records how much stock there is at any one time eg using EPOS or a spreadsheet package
0 Internet is used to purchase raw materials
Methods of ProductionBusinesses must decide which method of production to use to make their products There are different factors to think about
0The actual product being made0The quantity of the product0How to ensure the product is of a high quality0The way stock is managed0The resources available (eg staff and machinery)
Methods of Production
0Job Production
0Batch Production
0Flow Production
Job Production0This is when a product is made individually to
meet specific orders from customers
0Often involves skilled labour or craftspeople
0It is labour intensive
Advantages and Disadvantages
ADVANTAGES
0It meets the customersrsquo needs and is produced to their own specifications
0High customer satisfaction
0High prices can be charged as product is unique
0More motivating for workers as they see the product through all stages of production
DISADVANTAGES
0High labour costs as the process is labour intensive
0Specialist tools and equipment may be needed which can be expensive
0Costs are not recovered until the completion of the project
Batch Production0This is where a group of identical products are
made at one time All products in the batch move onto the next stage of production at the same time
0Machinery and equipment can be cleaned andor changed between batches
0Workers usually specialise in one job so become skilled in one area
Advantages and Disadvantages
ADVANTAGES
0Batches can be changed to meet the requirements of the customer
0Raw materials can be bought in bulk saving money
0Less skilled workers are required as only one part of the process is completed by a particular person so reduced costs
DISADVANTAGES
0Equipment and employees are not working between batches which costs money
0Any mistakes in one item can result in the whole batch being wasted which costs money and wastes time
0Workers motivation is reduced because they do not see the process from start to finish
Flow Production
0This is the continuous production of the same good
0It is used for making large quantities of an identical product
0Economies of scale can be made with this process
Advantages and Disadvantages
ADVANTAGES
0Economies of scales can be met due to the large production of goods
DISADVANTAGES
0A large amount of money is required for set up costs0Each product is identical0Lack of motivation for workers because they only work on a small part of the process
Flow production example
Car manufacturing uses flow production
Chassis of car
Engine Gearbox Seats Outer Shell
Dashboard and wiring
Windscreen and windows
Division of Labour
0Both batch and flow production use division of labour which means that each worker specialises in one job on the production line This makes the job very repetitive and boring
0Many of these jobs have been replaced by machinery This has caused unemployment for unskilled workers
Labour Intensive
0 Products made using mainly human effort
Advantages Disadvantages
Employees can be creative It is expensive to recruit and train employees
No need for expensive equipment Specialist skills require time to learn
Unique products can be made The quality of work can vary
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Management of Stock0 The purpose of holding stocks is to have a supply of
goods (raw materials) available for the production process and for distribution (finished goods) to customers when needed
3 main types of stock0 Raw Materials ndash purchases
from suppliers waiting to be used
0 Work in Progress ndash products that are currently being made (semi-finished goods)
0 Finished Goods ndash completed products waiting to be distributed
Task
Protecting stocks of raw materials and finished goods is very important For each of the following items suggest one example of what could happen if an organisationrsquos stock control system was poor
i frozen fishii mobile phonesiii fresh vegetablesiv new carsv printed booksvi jeans
Costsrisks of holding stock0 Costs money to store
stockWarehouseLightingSecurityInsurance
0 Risks areStock has a higher risk of
being stolenStock has a higher risk of
going out of dateRisk that the money
value of stock will fall eg due to changes in fashion
Too little stock
0 Production might stop0 Customers may not receive their orders on
time0 Any sudden increase in demand cannot be
met
Too much stock
0 Costs money to store stock ie warehouse lighting security insurance
0 Money which is tied up in stock might be put to better use
0 If social factors change (trendsfashion) the stock might be wasted
Technology in stock management
0 Most businesses have a computerised system that records how much stock there is at any one time eg using EPOS or a spreadsheet package
0 Internet is used to purchase raw materials
Methods of ProductionBusinesses must decide which method of production to use to make their products There are different factors to think about
0The actual product being made0The quantity of the product0How to ensure the product is of a high quality0The way stock is managed0The resources available (eg staff and machinery)
Methods of Production
0Job Production
0Batch Production
0Flow Production
Job Production0This is when a product is made individually to
meet specific orders from customers
0Often involves skilled labour or craftspeople
0It is labour intensive
Advantages and Disadvantages
ADVANTAGES
0It meets the customersrsquo needs and is produced to their own specifications
0High customer satisfaction
0High prices can be charged as product is unique
0More motivating for workers as they see the product through all stages of production
DISADVANTAGES
0High labour costs as the process is labour intensive
0Specialist tools and equipment may be needed which can be expensive
0Costs are not recovered until the completion of the project
Batch Production0This is where a group of identical products are
made at one time All products in the batch move onto the next stage of production at the same time
0Machinery and equipment can be cleaned andor changed between batches
0Workers usually specialise in one job so become skilled in one area
Advantages and Disadvantages
ADVANTAGES
0Batches can be changed to meet the requirements of the customer
0Raw materials can be bought in bulk saving money
0Less skilled workers are required as only one part of the process is completed by a particular person so reduced costs
DISADVANTAGES
0Equipment and employees are not working between batches which costs money
0Any mistakes in one item can result in the whole batch being wasted which costs money and wastes time
0Workers motivation is reduced because they do not see the process from start to finish
Flow Production
0This is the continuous production of the same good
0It is used for making large quantities of an identical product
0Economies of scale can be made with this process
Advantages and Disadvantages
ADVANTAGES
0Economies of scales can be met due to the large production of goods
DISADVANTAGES
0A large amount of money is required for set up costs0Each product is identical0Lack of motivation for workers because they only work on a small part of the process
Flow production example
Car manufacturing uses flow production
Chassis of car
Engine Gearbox Seats Outer Shell
Dashboard and wiring
Windscreen and windows
Division of Labour
0Both batch and flow production use division of labour which means that each worker specialises in one job on the production line This makes the job very repetitive and boring
0Many of these jobs have been replaced by machinery This has caused unemployment for unskilled workers
Labour Intensive
0 Products made using mainly human effort
Advantages Disadvantages
Employees can be creative It is expensive to recruit and train employees
No need for expensive equipment Specialist skills require time to learn
Unique products can be made The quality of work can vary
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
3 main types of stock0 Raw Materials ndash purchases
from suppliers waiting to be used
0 Work in Progress ndash products that are currently being made (semi-finished goods)
0 Finished Goods ndash completed products waiting to be distributed
Task
Protecting stocks of raw materials and finished goods is very important For each of the following items suggest one example of what could happen if an organisationrsquos stock control system was poor
i frozen fishii mobile phonesiii fresh vegetablesiv new carsv printed booksvi jeans
Costsrisks of holding stock0 Costs money to store
stockWarehouseLightingSecurityInsurance
0 Risks areStock has a higher risk of
being stolenStock has a higher risk of
going out of dateRisk that the money
value of stock will fall eg due to changes in fashion
Too little stock
0 Production might stop0 Customers may not receive their orders on
time0 Any sudden increase in demand cannot be
met
Too much stock
0 Costs money to store stock ie warehouse lighting security insurance
0 Money which is tied up in stock might be put to better use
0 If social factors change (trendsfashion) the stock might be wasted
Technology in stock management
0 Most businesses have a computerised system that records how much stock there is at any one time eg using EPOS or a spreadsheet package
0 Internet is used to purchase raw materials
Methods of ProductionBusinesses must decide which method of production to use to make their products There are different factors to think about
0The actual product being made0The quantity of the product0How to ensure the product is of a high quality0The way stock is managed0The resources available (eg staff and machinery)
Methods of Production
0Job Production
0Batch Production
0Flow Production
Job Production0This is when a product is made individually to
meet specific orders from customers
0Often involves skilled labour or craftspeople
0It is labour intensive
Advantages and Disadvantages
ADVANTAGES
0It meets the customersrsquo needs and is produced to their own specifications
0High customer satisfaction
0High prices can be charged as product is unique
0More motivating for workers as they see the product through all stages of production
DISADVANTAGES
0High labour costs as the process is labour intensive
0Specialist tools and equipment may be needed which can be expensive
0Costs are not recovered until the completion of the project
Batch Production0This is where a group of identical products are
made at one time All products in the batch move onto the next stage of production at the same time
0Machinery and equipment can be cleaned andor changed between batches
0Workers usually specialise in one job so become skilled in one area
Advantages and Disadvantages
ADVANTAGES
0Batches can be changed to meet the requirements of the customer
0Raw materials can be bought in bulk saving money
0Less skilled workers are required as only one part of the process is completed by a particular person so reduced costs
DISADVANTAGES
0Equipment and employees are not working between batches which costs money
0Any mistakes in one item can result in the whole batch being wasted which costs money and wastes time
0Workers motivation is reduced because they do not see the process from start to finish
Flow Production
0This is the continuous production of the same good
0It is used for making large quantities of an identical product
0Economies of scale can be made with this process
Advantages and Disadvantages
ADVANTAGES
0Economies of scales can be met due to the large production of goods
DISADVANTAGES
0A large amount of money is required for set up costs0Each product is identical0Lack of motivation for workers because they only work on a small part of the process
Flow production example
Car manufacturing uses flow production
Chassis of car
Engine Gearbox Seats Outer Shell
Dashboard and wiring
Windscreen and windows
Division of Labour
0Both batch and flow production use division of labour which means that each worker specialises in one job on the production line This makes the job very repetitive and boring
0Many of these jobs have been replaced by machinery This has caused unemployment for unskilled workers
Labour Intensive
0 Products made using mainly human effort
Advantages Disadvantages
Employees can be creative It is expensive to recruit and train employees
No need for expensive equipment Specialist skills require time to learn
Unique products can be made The quality of work can vary
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Task
Protecting stocks of raw materials and finished goods is very important For each of the following items suggest one example of what could happen if an organisationrsquos stock control system was poor
i frozen fishii mobile phonesiii fresh vegetablesiv new carsv printed booksvi jeans
Costsrisks of holding stock0 Costs money to store
stockWarehouseLightingSecurityInsurance
0 Risks areStock has a higher risk of
being stolenStock has a higher risk of
going out of dateRisk that the money
value of stock will fall eg due to changes in fashion
Too little stock
0 Production might stop0 Customers may not receive their orders on
time0 Any sudden increase in demand cannot be
met
Too much stock
0 Costs money to store stock ie warehouse lighting security insurance
0 Money which is tied up in stock might be put to better use
0 If social factors change (trendsfashion) the stock might be wasted
Technology in stock management
0 Most businesses have a computerised system that records how much stock there is at any one time eg using EPOS or a spreadsheet package
0 Internet is used to purchase raw materials
Methods of ProductionBusinesses must decide which method of production to use to make their products There are different factors to think about
0The actual product being made0The quantity of the product0How to ensure the product is of a high quality0The way stock is managed0The resources available (eg staff and machinery)
Methods of Production
0Job Production
0Batch Production
0Flow Production
Job Production0This is when a product is made individually to
meet specific orders from customers
0Often involves skilled labour or craftspeople
0It is labour intensive
Advantages and Disadvantages
ADVANTAGES
0It meets the customersrsquo needs and is produced to their own specifications
0High customer satisfaction
0High prices can be charged as product is unique
0More motivating for workers as they see the product through all stages of production
DISADVANTAGES
0High labour costs as the process is labour intensive
0Specialist tools and equipment may be needed which can be expensive
0Costs are not recovered until the completion of the project
Batch Production0This is where a group of identical products are
made at one time All products in the batch move onto the next stage of production at the same time
0Machinery and equipment can be cleaned andor changed between batches
0Workers usually specialise in one job so become skilled in one area
Advantages and Disadvantages
ADVANTAGES
0Batches can be changed to meet the requirements of the customer
0Raw materials can be bought in bulk saving money
0Less skilled workers are required as only one part of the process is completed by a particular person so reduced costs
DISADVANTAGES
0Equipment and employees are not working between batches which costs money
0Any mistakes in one item can result in the whole batch being wasted which costs money and wastes time
0Workers motivation is reduced because they do not see the process from start to finish
Flow Production
0This is the continuous production of the same good
0It is used for making large quantities of an identical product
0Economies of scale can be made with this process
Advantages and Disadvantages
ADVANTAGES
0Economies of scales can be met due to the large production of goods
DISADVANTAGES
0A large amount of money is required for set up costs0Each product is identical0Lack of motivation for workers because they only work on a small part of the process
Flow production example
Car manufacturing uses flow production
Chassis of car
Engine Gearbox Seats Outer Shell
Dashboard and wiring
Windscreen and windows
Division of Labour
0Both batch and flow production use division of labour which means that each worker specialises in one job on the production line This makes the job very repetitive and boring
0Many of these jobs have been replaced by machinery This has caused unemployment for unskilled workers
Labour Intensive
0 Products made using mainly human effort
Advantages Disadvantages
Employees can be creative It is expensive to recruit and train employees
No need for expensive equipment Specialist skills require time to learn
Unique products can be made The quality of work can vary
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Costsrisks of holding stock0 Costs money to store
stockWarehouseLightingSecurityInsurance
0 Risks areStock has a higher risk of
being stolenStock has a higher risk of
going out of dateRisk that the money
value of stock will fall eg due to changes in fashion
Too little stock
0 Production might stop0 Customers may not receive their orders on
time0 Any sudden increase in demand cannot be
met
Too much stock
0 Costs money to store stock ie warehouse lighting security insurance
0 Money which is tied up in stock might be put to better use
0 If social factors change (trendsfashion) the stock might be wasted
Technology in stock management
0 Most businesses have a computerised system that records how much stock there is at any one time eg using EPOS or a spreadsheet package
0 Internet is used to purchase raw materials
Methods of ProductionBusinesses must decide which method of production to use to make their products There are different factors to think about
0The actual product being made0The quantity of the product0How to ensure the product is of a high quality0The way stock is managed0The resources available (eg staff and machinery)
Methods of Production
0Job Production
0Batch Production
0Flow Production
Job Production0This is when a product is made individually to
meet specific orders from customers
0Often involves skilled labour or craftspeople
0It is labour intensive
Advantages and Disadvantages
ADVANTAGES
0It meets the customersrsquo needs and is produced to their own specifications
0High customer satisfaction
0High prices can be charged as product is unique
0More motivating for workers as they see the product through all stages of production
DISADVANTAGES
0High labour costs as the process is labour intensive
0Specialist tools and equipment may be needed which can be expensive
0Costs are not recovered until the completion of the project
Batch Production0This is where a group of identical products are
made at one time All products in the batch move onto the next stage of production at the same time
0Machinery and equipment can be cleaned andor changed between batches
0Workers usually specialise in one job so become skilled in one area
Advantages and Disadvantages
ADVANTAGES
0Batches can be changed to meet the requirements of the customer
0Raw materials can be bought in bulk saving money
0Less skilled workers are required as only one part of the process is completed by a particular person so reduced costs
DISADVANTAGES
0Equipment and employees are not working between batches which costs money
0Any mistakes in one item can result in the whole batch being wasted which costs money and wastes time
0Workers motivation is reduced because they do not see the process from start to finish
Flow Production
0This is the continuous production of the same good
0It is used for making large quantities of an identical product
0Economies of scale can be made with this process
Advantages and Disadvantages
ADVANTAGES
0Economies of scales can be met due to the large production of goods
DISADVANTAGES
0A large amount of money is required for set up costs0Each product is identical0Lack of motivation for workers because they only work on a small part of the process
Flow production example
Car manufacturing uses flow production
Chassis of car
Engine Gearbox Seats Outer Shell
Dashboard and wiring
Windscreen and windows
Division of Labour
0Both batch and flow production use division of labour which means that each worker specialises in one job on the production line This makes the job very repetitive and boring
0Many of these jobs have been replaced by machinery This has caused unemployment for unskilled workers
Labour Intensive
0 Products made using mainly human effort
Advantages Disadvantages
Employees can be creative It is expensive to recruit and train employees
No need for expensive equipment Specialist skills require time to learn
Unique products can be made The quality of work can vary
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Too little stock
0 Production might stop0 Customers may not receive their orders on
time0 Any sudden increase in demand cannot be
met
Too much stock
0 Costs money to store stock ie warehouse lighting security insurance
0 Money which is tied up in stock might be put to better use
0 If social factors change (trendsfashion) the stock might be wasted
Technology in stock management
0 Most businesses have a computerised system that records how much stock there is at any one time eg using EPOS or a spreadsheet package
0 Internet is used to purchase raw materials
Methods of ProductionBusinesses must decide which method of production to use to make their products There are different factors to think about
0The actual product being made0The quantity of the product0How to ensure the product is of a high quality0The way stock is managed0The resources available (eg staff and machinery)
Methods of Production
0Job Production
0Batch Production
0Flow Production
Job Production0This is when a product is made individually to
meet specific orders from customers
0Often involves skilled labour or craftspeople
0It is labour intensive
Advantages and Disadvantages
ADVANTAGES
0It meets the customersrsquo needs and is produced to their own specifications
0High customer satisfaction
0High prices can be charged as product is unique
0More motivating for workers as they see the product through all stages of production
DISADVANTAGES
0High labour costs as the process is labour intensive
0Specialist tools and equipment may be needed which can be expensive
0Costs are not recovered until the completion of the project
Batch Production0This is where a group of identical products are
made at one time All products in the batch move onto the next stage of production at the same time
0Machinery and equipment can be cleaned andor changed between batches
0Workers usually specialise in one job so become skilled in one area
Advantages and Disadvantages
ADVANTAGES
0Batches can be changed to meet the requirements of the customer
0Raw materials can be bought in bulk saving money
0Less skilled workers are required as only one part of the process is completed by a particular person so reduced costs
DISADVANTAGES
0Equipment and employees are not working between batches which costs money
0Any mistakes in one item can result in the whole batch being wasted which costs money and wastes time
0Workers motivation is reduced because they do not see the process from start to finish
Flow Production
0This is the continuous production of the same good
0It is used for making large quantities of an identical product
0Economies of scale can be made with this process
Advantages and Disadvantages
ADVANTAGES
0Economies of scales can be met due to the large production of goods
DISADVANTAGES
0A large amount of money is required for set up costs0Each product is identical0Lack of motivation for workers because they only work on a small part of the process
Flow production example
Car manufacturing uses flow production
Chassis of car
Engine Gearbox Seats Outer Shell
Dashboard and wiring
Windscreen and windows
Division of Labour
0Both batch and flow production use division of labour which means that each worker specialises in one job on the production line This makes the job very repetitive and boring
0Many of these jobs have been replaced by machinery This has caused unemployment for unskilled workers
Labour Intensive
0 Products made using mainly human effort
Advantages Disadvantages
Employees can be creative It is expensive to recruit and train employees
No need for expensive equipment Specialist skills require time to learn
Unique products can be made The quality of work can vary
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Too much stock
0 Costs money to store stock ie warehouse lighting security insurance
0 Money which is tied up in stock might be put to better use
0 If social factors change (trendsfashion) the stock might be wasted
Technology in stock management
0 Most businesses have a computerised system that records how much stock there is at any one time eg using EPOS or a spreadsheet package
0 Internet is used to purchase raw materials
Methods of ProductionBusinesses must decide which method of production to use to make their products There are different factors to think about
0The actual product being made0The quantity of the product0How to ensure the product is of a high quality0The way stock is managed0The resources available (eg staff and machinery)
Methods of Production
0Job Production
0Batch Production
0Flow Production
Job Production0This is when a product is made individually to
meet specific orders from customers
0Often involves skilled labour or craftspeople
0It is labour intensive
Advantages and Disadvantages
ADVANTAGES
0It meets the customersrsquo needs and is produced to their own specifications
0High customer satisfaction
0High prices can be charged as product is unique
0More motivating for workers as they see the product through all stages of production
DISADVANTAGES
0High labour costs as the process is labour intensive
0Specialist tools and equipment may be needed which can be expensive
0Costs are not recovered until the completion of the project
Batch Production0This is where a group of identical products are
made at one time All products in the batch move onto the next stage of production at the same time
0Machinery and equipment can be cleaned andor changed between batches
0Workers usually specialise in one job so become skilled in one area
Advantages and Disadvantages
ADVANTAGES
0Batches can be changed to meet the requirements of the customer
0Raw materials can be bought in bulk saving money
0Less skilled workers are required as only one part of the process is completed by a particular person so reduced costs
DISADVANTAGES
0Equipment and employees are not working between batches which costs money
0Any mistakes in one item can result in the whole batch being wasted which costs money and wastes time
0Workers motivation is reduced because they do not see the process from start to finish
Flow Production
0This is the continuous production of the same good
0It is used for making large quantities of an identical product
0Economies of scale can be made with this process
Advantages and Disadvantages
ADVANTAGES
0Economies of scales can be met due to the large production of goods
DISADVANTAGES
0A large amount of money is required for set up costs0Each product is identical0Lack of motivation for workers because they only work on a small part of the process
Flow production example
Car manufacturing uses flow production
Chassis of car
Engine Gearbox Seats Outer Shell
Dashboard and wiring
Windscreen and windows
Division of Labour
0Both batch and flow production use division of labour which means that each worker specialises in one job on the production line This makes the job very repetitive and boring
0Many of these jobs have been replaced by machinery This has caused unemployment for unskilled workers
Labour Intensive
0 Products made using mainly human effort
Advantages Disadvantages
Employees can be creative It is expensive to recruit and train employees
No need for expensive equipment Specialist skills require time to learn
Unique products can be made The quality of work can vary
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Technology in stock management
0 Most businesses have a computerised system that records how much stock there is at any one time eg using EPOS or a spreadsheet package
0 Internet is used to purchase raw materials
Methods of ProductionBusinesses must decide which method of production to use to make their products There are different factors to think about
0The actual product being made0The quantity of the product0How to ensure the product is of a high quality0The way stock is managed0The resources available (eg staff and machinery)
Methods of Production
0Job Production
0Batch Production
0Flow Production
Job Production0This is when a product is made individually to
meet specific orders from customers
0Often involves skilled labour or craftspeople
0It is labour intensive
Advantages and Disadvantages
ADVANTAGES
0It meets the customersrsquo needs and is produced to their own specifications
0High customer satisfaction
0High prices can be charged as product is unique
0More motivating for workers as they see the product through all stages of production
DISADVANTAGES
0High labour costs as the process is labour intensive
0Specialist tools and equipment may be needed which can be expensive
0Costs are not recovered until the completion of the project
Batch Production0This is where a group of identical products are
made at one time All products in the batch move onto the next stage of production at the same time
0Machinery and equipment can be cleaned andor changed between batches
0Workers usually specialise in one job so become skilled in one area
Advantages and Disadvantages
ADVANTAGES
0Batches can be changed to meet the requirements of the customer
0Raw materials can be bought in bulk saving money
0Less skilled workers are required as only one part of the process is completed by a particular person so reduced costs
DISADVANTAGES
0Equipment and employees are not working between batches which costs money
0Any mistakes in one item can result in the whole batch being wasted which costs money and wastes time
0Workers motivation is reduced because they do not see the process from start to finish
Flow Production
0This is the continuous production of the same good
0It is used for making large quantities of an identical product
0Economies of scale can be made with this process
Advantages and Disadvantages
ADVANTAGES
0Economies of scales can be met due to the large production of goods
DISADVANTAGES
0A large amount of money is required for set up costs0Each product is identical0Lack of motivation for workers because they only work on a small part of the process
Flow production example
Car manufacturing uses flow production
Chassis of car
Engine Gearbox Seats Outer Shell
Dashboard and wiring
Windscreen and windows
Division of Labour
0Both batch and flow production use division of labour which means that each worker specialises in one job on the production line This makes the job very repetitive and boring
0Many of these jobs have been replaced by machinery This has caused unemployment for unskilled workers
Labour Intensive
0 Products made using mainly human effort
Advantages Disadvantages
Employees can be creative It is expensive to recruit and train employees
No need for expensive equipment Specialist skills require time to learn
Unique products can be made The quality of work can vary
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Methods of ProductionBusinesses must decide which method of production to use to make their products There are different factors to think about
0The actual product being made0The quantity of the product0How to ensure the product is of a high quality0The way stock is managed0The resources available (eg staff and machinery)
Methods of Production
0Job Production
0Batch Production
0Flow Production
Job Production0This is when a product is made individually to
meet specific orders from customers
0Often involves skilled labour or craftspeople
0It is labour intensive
Advantages and Disadvantages
ADVANTAGES
0It meets the customersrsquo needs and is produced to their own specifications
0High customer satisfaction
0High prices can be charged as product is unique
0More motivating for workers as they see the product through all stages of production
DISADVANTAGES
0High labour costs as the process is labour intensive
0Specialist tools and equipment may be needed which can be expensive
0Costs are not recovered until the completion of the project
Batch Production0This is where a group of identical products are
made at one time All products in the batch move onto the next stage of production at the same time
0Machinery and equipment can be cleaned andor changed between batches
0Workers usually specialise in one job so become skilled in one area
Advantages and Disadvantages
ADVANTAGES
0Batches can be changed to meet the requirements of the customer
0Raw materials can be bought in bulk saving money
0Less skilled workers are required as only one part of the process is completed by a particular person so reduced costs
DISADVANTAGES
0Equipment and employees are not working between batches which costs money
0Any mistakes in one item can result in the whole batch being wasted which costs money and wastes time
0Workers motivation is reduced because they do not see the process from start to finish
Flow Production
0This is the continuous production of the same good
0It is used for making large quantities of an identical product
0Economies of scale can be made with this process
Advantages and Disadvantages
ADVANTAGES
0Economies of scales can be met due to the large production of goods
DISADVANTAGES
0A large amount of money is required for set up costs0Each product is identical0Lack of motivation for workers because they only work on a small part of the process
Flow production example
Car manufacturing uses flow production
Chassis of car
Engine Gearbox Seats Outer Shell
Dashboard and wiring
Windscreen and windows
Division of Labour
0Both batch and flow production use division of labour which means that each worker specialises in one job on the production line This makes the job very repetitive and boring
0Many of these jobs have been replaced by machinery This has caused unemployment for unskilled workers
Labour Intensive
0 Products made using mainly human effort
Advantages Disadvantages
Employees can be creative It is expensive to recruit and train employees
No need for expensive equipment Specialist skills require time to learn
Unique products can be made The quality of work can vary
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Methods of Production
0Job Production
0Batch Production
0Flow Production
Job Production0This is when a product is made individually to
meet specific orders from customers
0Often involves skilled labour or craftspeople
0It is labour intensive
Advantages and Disadvantages
ADVANTAGES
0It meets the customersrsquo needs and is produced to their own specifications
0High customer satisfaction
0High prices can be charged as product is unique
0More motivating for workers as they see the product through all stages of production
DISADVANTAGES
0High labour costs as the process is labour intensive
0Specialist tools and equipment may be needed which can be expensive
0Costs are not recovered until the completion of the project
Batch Production0This is where a group of identical products are
made at one time All products in the batch move onto the next stage of production at the same time
0Machinery and equipment can be cleaned andor changed between batches
0Workers usually specialise in one job so become skilled in one area
Advantages and Disadvantages
ADVANTAGES
0Batches can be changed to meet the requirements of the customer
0Raw materials can be bought in bulk saving money
0Less skilled workers are required as only one part of the process is completed by a particular person so reduced costs
DISADVANTAGES
0Equipment and employees are not working between batches which costs money
0Any mistakes in one item can result in the whole batch being wasted which costs money and wastes time
0Workers motivation is reduced because they do not see the process from start to finish
Flow Production
0This is the continuous production of the same good
0It is used for making large quantities of an identical product
0Economies of scale can be made with this process
Advantages and Disadvantages
ADVANTAGES
0Economies of scales can be met due to the large production of goods
DISADVANTAGES
0A large amount of money is required for set up costs0Each product is identical0Lack of motivation for workers because they only work on a small part of the process
Flow production example
Car manufacturing uses flow production
Chassis of car
Engine Gearbox Seats Outer Shell
Dashboard and wiring
Windscreen and windows
Division of Labour
0Both batch and flow production use division of labour which means that each worker specialises in one job on the production line This makes the job very repetitive and boring
0Many of these jobs have been replaced by machinery This has caused unemployment for unskilled workers
Labour Intensive
0 Products made using mainly human effort
Advantages Disadvantages
Employees can be creative It is expensive to recruit and train employees
No need for expensive equipment Specialist skills require time to learn
Unique products can be made The quality of work can vary
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Job Production0This is when a product is made individually to
meet specific orders from customers
0Often involves skilled labour or craftspeople
0It is labour intensive
Advantages and Disadvantages
ADVANTAGES
0It meets the customersrsquo needs and is produced to their own specifications
0High customer satisfaction
0High prices can be charged as product is unique
0More motivating for workers as they see the product through all stages of production
DISADVANTAGES
0High labour costs as the process is labour intensive
0Specialist tools and equipment may be needed which can be expensive
0Costs are not recovered until the completion of the project
Batch Production0This is where a group of identical products are
made at one time All products in the batch move onto the next stage of production at the same time
0Machinery and equipment can be cleaned andor changed between batches
0Workers usually specialise in one job so become skilled in one area
Advantages and Disadvantages
ADVANTAGES
0Batches can be changed to meet the requirements of the customer
0Raw materials can be bought in bulk saving money
0Less skilled workers are required as only one part of the process is completed by a particular person so reduced costs
DISADVANTAGES
0Equipment and employees are not working between batches which costs money
0Any mistakes in one item can result in the whole batch being wasted which costs money and wastes time
0Workers motivation is reduced because they do not see the process from start to finish
Flow Production
0This is the continuous production of the same good
0It is used for making large quantities of an identical product
0Economies of scale can be made with this process
Advantages and Disadvantages
ADVANTAGES
0Economies of scales can be met due to the large production of goods
DISADVANTAGES
0A large amount of money is required for set up costs0Each product is identical0Lack of motivation for workers because they only work on a small part of the process
Flow production example
Car manufacturing uses flow production
Chassis of car
Engine Gearbox Seats Outer Shell
Dashboard and wiring
Windscreen and windows
Division of Labour
0Both batch and flow production use division of labour which means that each worker specialises in one job on the production line This makes the job very repetitive and boring
0Many of these jobs have been replaced by machinery This has caused unemployment for unskilled workers
Labour Intensive
0 Products made using mainly human effort
Advantages Disadvantages
Employees can be creative It is expensive to recruit and train employees
No need for expensive equipment Specialist skills require time to learn
Unique products can be made The quality of work can vary
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Advantages and Disadvantages
ADVANTAGES
0It meets the customersrsquo needs and is produced to their own specifications
0High customer satisfaction
0High prices can be charged as product is unique
0More motivating for workers as they see the product through all stages of production
DISADVANTAGES
0High labour costs as the process is labour intensive
0Specialist tools and equipment may be needed which can be expensive
0Costs are not recovered until the completion of the project
Batch Production0This is where a group of identical products are
made at one time All products in the batch move onto the next stage of production at the same time
0Machinery and equipment can be cleaned andor changed between batches
0Workers usually specialise in one job so become skilled in one area
Advantages and Disadvantages
ADVANTAGES
0Batches can be changed to meet the requirements of the customer
0Raw materials can be bought in bulk saving money
0Less skilled workers are required as only one part of the process is completed by a particular person so reduced costs
DISADVANTAGES
0Equipment and employees are not working between batches which costs money
0Any mistakes in one item can result in the whole batch being wasted which costs money and wastes time
0Workers motivation is reduced because they do not see the process from start to finish
Flow Production
0This is the continuous production of the same good
0It is used for making large quantities of an identical product
0Economies of scale can be made with this process
Advantages and Disadvantages
ADVANTAGES
0Economies of scales can be met due to the large production of goods
DISADVANTAGES
0A large amount of money is required for set up costs0Each product is identical0Lack of motivation for workers because they only work on a small part of the process
Flow production example
Car manufacturing uses flow production
Chassis of car
Engine Gearbox Seats Outer Shell
Dashboard and wiring
Windscreen and windows
Division of Labour
0Both batch and flow production use division of labour which means that each worker specialises in one job on the production line This makes the job very repetitive and boring
0Many of these jobs have been replaced by machinery This has caused unemployment for unskilled workers
Labour Intensive
0 Products made using mainly human effort
Advantages Disadvantages
Employees can be creative It is expensive to recruit and train employees
No need for expensive equipment Specialist skills require time to learn
Unique products can be made The quality of work can vary
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Batch Production0This is where a group of identical products are
made at one time All products in the batch move onto the next stage of production at the same time
0Machinery and equipment can be cleaned andor changed between batches
0Workers usually specialise in one job so become skilled in one area
Advantages and Disadvantages
ADVANTAGES
0Batches can be changed to meet the requirements of the customer
0Raw materials can be bought in bulk saving money
0Less skilled workers are required as only one part of the process is completed by a particular person so reduced costs
DISADVANTAGES
0Equipment and employees are not working between batches which costs money
0Any mistakes in one item can result in the whole batch being wasted which costs money and wastes time
0Workers motivation is reduced because they do not see the process from start to finish
Flow Production
0This is the continuous production of the same good
0It is used for making large quantities of an identical product
0Economies of scale can be made with this process
Advantages and Disadvantages
ADVANTAGES
0Economies of scales can be met due to the large production of goods
DISADVANTAGES
0A large amount of money is required for set up costs0Each product is identical0Lack of motivation for workers because they only work on a small part of the process
Flow production example
Car manufacturing uses flow production
Chassis of car
Engine Gearbox Seats Outer Shell
Dashboard and wiring
Windscreen and windows
Division of Labour
0Both batch and flow production use division of labour which means that each worker specialises in one job on the production line This makes the job very repetitive and boring
0Many of these jobs have been replaced by machinery This has caused unemployment for unskilled workers
Labour Intensive
0 Products made using mainly human effort
Advantages Disadvantages
Employees can be creative It is expensive to recruit and train employees
No need for expensive equipment Specialist skills require time to learn
Unique products can be made The quality of work can vary
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Advantages and Disadvantages
ADVANTAGES
0Batches can be changed to meet the requirements of the customer
0Raw materials can be bought in bulk saving money
0Less skilled workers are required as only one part of the process is completed by a particular person so reduced costs
DISADVANTAGES
0Equipment and employees are not working between batches which costs money
0Any mistakes in one item can result in the whole batch being wasted which costs money and wastes time
0Workers motivation is reduced because they do not see the process from start to finish
Flow Production
0This is the continuous production of the same good
0It is used for making large quantities of an identical product
0Economies of scale can be made with this process
Advantages and Disadvantages
ADVANTAGES
0Economies of scales can be met due to the large production of goods
DISADVANTAGES
0A large amount of money is required for set up costs0Each product is identical0Lack of motivation for workers because they only work on a small part of the process
Flow production example
Car manufacturing uses flow production
Chassis of car
Engine Gearbox Seats Outer Shell
Dashboard and wiring
Windscreen and windows
Division of Labour
0Both batch and flow production use division of labour which means that each worker specialises in one job on the production line This makes the job very repetitive and boring
0Many of these jobs have been replaced by machinery This has caused unemployment for unskilled workers
Labour Intensive
0 Products made using mainly human effort
Advantages Disadvantages
Employees can be creative It is expensive to recruit and train employees
No need for expensive equipment Specialist skills require time to learn
Unique products can be made The quality of work can vary
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Flow Production
0This is the continuous production of the same good
0It is used for making large quantities of an identical product
0Economies of scale can be made with this process
Advantages and Disadvantages
ADVANTAGES
0Economies of scales can be met due to the large production of goods
DISADVANTAGES
0A large amount of money is required for set up costs0Each product is identical0Lack of motivation for workers because they only work on a small part of the process
Flow production example
Car manufacturing uses flow production
Chassis of car
Engine Gearbox Seats Outer Shell
Dashboard and wiring
Windscreen and windows
Division of Labour
0Both batch and flow production use division of labour which means that each worker specialises in one job on the production line This makes the job very repetitive and boring
0Many of these jobs have been replaced by machinery This has caused unemployment for unskilled workers
Labour Intensive
0 Products made using mainly human effort
Advantages Disadvantages
Employees can be creative It is expensive to recruit and train employees
No need for expensive equipment Specialist skills require time to learn
Unique products can be made The quality of work can vary
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Advantages and Disadvantages
ADVANTAGES
0Economies of scales can be met due to the large production of goods
DISADVANTAGES
0A large amount of money is required for set up costs0Each product is identical0Lack of motivation for workers because they only work on a small part of the process
Flow production example
Car manufacturing uses flow production
Chassis of car
Engine Gearbox Seats Outer Shell
Dashboard and wiring
Windscreen and windows
Division of Labour
0Both batch and flow production use division of labour which means that each worker specialises in one job on the production line This makes the job very repetitive and boring
0Many of these jobs have been replaced by machinery This has caused unemployment for unskilled workers
Labour Intensive
0 Products made using mainly human effort
Advantages Disadvantages
Employees can be creative It is expensive to recruit and train employees
No need for expensive equipment Specialist skills require time to learn
Unique products can be made The quality of work can vary
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Flow production example
Car manufacturing uses flow production
Chassis of car
Engine Gearbox Seats Outer Shell
Dashboard and wiring
Windscreen and windows
Division of Labour
0Both batch and flow production use division of labour which means that each worker specialises in one job on the production line This makes the job very repetitive and boring
0Many of these jobs have been replaced by machinery This has caused unemployment for unskilled workers
Labour Intensive
0 Products made using mainly human effort
Advantages Disadvantages
Employees can be creative It is expensive to recruit and train employees
No need for expensive equipment Specialist skills require time to learn
Unique products can be made The quality of work can vary
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Division of Labour
0Both batch and flow production use division of labour which means that each worker specialises in one job on the production line This makes the job very repetitive and boring
0Many of these jobs have been replaced by machinery This has caused unemployment for unskilled workers
Labour Intensive
0 Products made using mainly human effort
Advantages Disadvantages
Employees can be creative It is expensive to recruit and train employees
No need for expensive equipment Specialist skills require time to learn
Unique products can be made The quality of work can vary
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Labour Intensive
0 Products made using mainly human effort
Advantages Disadvantages
Employees can be creative It is expensive to recruit and train employees
No need for expensive equipment Specialist skills require time to learn
Unique products can be made The quality of work can vary
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Capital Intensive
0 Products made using mainly machines and equipment If it is made using only machinery this is called automation When it is a mixture of both humans and machines this is called mechanisation
Advantages Disadvantages
Can work 247 Expensive to purchase
The product will be of a consistent quality
Canrsquot meet individual customer requirements
Unskilled employees required (cheaper labour)
Breakdowns cause production to stop
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Quality Products and Services
0 All businesses must ensure they provide a good quality product or service which meets customer needs in order to survive
0 The business must decide minimum quality levels and who is responsible for ensuring that quality is maintained at the lowest possible cost
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Advantages of Ensuring Quality
0 Repeat purchases0 Improved reputation0 Competitive advantage0 Maximise salesprofits0 Increased market share0 Reduced wastage
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Methods of Ensuring Quality
High Quality Raw Materials
0This will ensure only the best inputs are used in your production and lead to a higher quality product
0However the costs of these materials may be higher and a reliable supplier is required
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Methods of Ensuring Quality
High Quality Employees
0Fewer errors are made and accidents are less likely to happen
0However it can be time consuming and expensive to train employees
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Methods of Ensuring Quality
Quality Control
0Quality Control is the checking of a product or service by carrying out an inspection
0This usually happens at the end of the production process
0This is less time consuming than other methods of inspecting quality
0May lead to large amounts of waste as it is only checked at the end
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Methods of Ensuring QualityQuality Management
0Quality Management is a method by which a business focuses on ensuring the product is made perfectly every time This requires a commitment by all employees
0Samples of products are tested at random and at different stages of the production process
0See Nissan diagramSee Nissan diagram
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Methods of Ensuring Quality
Quality Management
0 Product constantly checked to minimise waste0 More thorough than other methods0 Improves team work and morale
0 However it requires a commitment from everyone0 Policies take time to implement and must be strictly
followed
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Ethical and Environmental
0Businesses have to be socially responsible
0Means they will be seen in a positive way by not harming the local environment or community
0How can they do this
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Businesses can
0 Try to minimise wastage by ensuring employees are trained ensuring machinery is kept in good condition and by not overstocking Could be expensive
0 Recycle as much as possible by encouraging employees to put rubbish in appropriately coloured bins and by re-using materials in the production process as much as possible
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-
Businesses can
0 Try to minimise packaging by only using the necessary amount of packaging to maintain the productrsquos quality Cuts costs good for the environment
0 Prevent pollution by watching the materials it uses in production (eg fuel and chemicals) and by disposing of any harmful chemicals or products in the most environmentally friendly way
- Learning Intentions
- What is Operations
- Operations
- PowerPoint Presentation
- Role of Operations
- Choosing a supplier
- Slide 8
- Factors to consider
- Slide 10
- Management of Stock
- 3 main types of stock
- Slide 13
- Costsrisks of holding stock
- Too little stock
- Too much stock
- Technology in stock management
- Methods of Production
- Slide 19
- Job Production
- Advantages and Disadvantages
- Batch Production
- Slide 23
- Flow Production
- Slide 25
- Flow production example
- Division of Labour
- Labour Intensive
- Capital Intensive
- Quality Products and Services
- Advantages of Ensuring Quality
- Methods of Ensuring Quality
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Ethical and Environmental
- Businesses can
- Slide 39
-