National 5 Business Management - Management of Operations

Flashcards on business management, focusing on operations management, suppliers, inventory, production methods, quality control, ethics, environmental impact and technology in operations.

Purchasing Mix

Factors that a business should consider when choosing a supplier, including cost, discounts, and quality.

Lead Time

The time between a business placing an order and a supplier delivering the materials.

Understocking

Holding too little inventory to operate efficiently, leading to production slowdowns and dissatisfied customers.

Overstocking

Holding more inventory than required, tying up money and increasing storage costs.

Inventory Control Diagram

A visual system showing maximum and minimum inventory levels, re-order points, and lead times.

Re-order Level

Inventory level at which a business should place an order with its supplier.

Re-order Quantity

The amount of inventory that a business will order to bring levels back to maximum.

EPOS Systems

Electronic Point of Sale systems track inventory levels in real time and can automatically re-order inventory.

Job Production

Creating one-off, unique products customized to individual customer requirements.

Batch Production

Making products in small groups (batches), where each batch can be different.

Flow Production

Mass producing identical products on an assembly line.

Quality Inputs

High-quality raw materials, skilled employees, and well-maintained technology to ensure a high-quality finished product.

Quality Control

Inspecting a sample of raw materials before production and the finished good at the end of production.

Quality Assurance

Inspecting the quality of a product at every stage of production.

Quality Circles

Small groups of employees who meet to discuss how to improve quality and methods of working.

Benchmarking

Identifying the company with the highest level of quality and trying to reach that standard.

Ethical Operations

Businesses aiming to act in ways that are fair, honest, and right, such as paying a living wage and avoiding child labor.

Environmental Operations

Businesses considering the impact of their operations on the planet and taking actions to minimize damage, such as reducing packaging and using renewable energy.

Computer-Aided Design (CAD)

Software that allows for digital models of products to be designed and created.

Computer-Aided Manufacturing (CAM)

The use of computer-controlled machinery and robots in the production of a product.

Global Positioning System (GPS)

Tracking software can be used to track deliveries from suppliers and to track a company's own delivery vehicles as they deliver orders to customers.