2.3 - making operations decisions

• What are the main four departments discussed in the video series?

  Marketing, operations, finance, human resources
• What is job production?

  One-off production of a unique item
• What is batch production?

  Limited quantity of identical products
• How does a bakery use batch production?

  Making pastries in groups of 15 or 20
• What is flow production?

  Continuous production of goods
• What is the main purpose of operations?

  Create or provide goods and services
• How do we measure production effectiveness?

  Through productivity and efficiency
• What does productivity measure?

  Quantity produced over time
• What does efficiency refer to?

  Making the most out of resources
• Who is more productive: shooter A with 7 out of 10 shots or shooter B with 5 out of 7 shots?

  Shooter A
• Who is more efficient: shooter A with 70% success or shooter B with 71.4% success?

  Shooter B
• What is the difference between labor-intensive and capital-intensive production?

  Labor-intensive is human-based; capital-intensive is machine-based
• What is a benefit of capital-intensive production?

  No need to pay wages
• What is a drawback of labor-intensive production?

  Requires ongoing wage payments
• What is the purpose of the buffer stock level?

  To prevent running out of stock
• What does the maximum stock level represent?

  The highest amount of stock a business can hold
• What is the reorder level in stock management?

  Point at which new stock is ordered
• What is lead time in stock management?

  Time between ordering and receiving stock
• What is the concept of just-in-time inventory?

  Ordering stock just before it runs out
• What are the three main production methods covered in the video?

  • Job production
  • Batch production
  • Flow production
• What are the benefits and drawbacks of labor-intensive and capital-intensive production?

  Labor-intensive:

  • Benefits: Lower upfront costs, flexibility
  • Drawbacks: Ongoing wage payments, human limitations

  
  

  Capital-intensive:

  • Benefits: Consistency, no wage payments
  • Drawbacks: High initial costs, maintenance required
• What are the key elements of the bargate stock graph?

  • Maximum stock level
  • Minimum stock level (buffer stock)
  • Reorder level
  • Lead time
• How does just-in-time inventory management work?

  • Orders stock more frequently
  • Reduces maximum stock level
  • Minimizes buffer stock
  • Ensures stock arrives just in time
• What is the concept of just in time in inventory management?

  Ordering less stock more frequently
• Why do businesses use just in time ordering?

  To reduce storage costs and buffer stock
• If a business sells 20 items a week, how often should they order under just in time?

  Every week for 20 items
• How does just in time affect maximum stock levels?

  It can significantly reduce maximum stock levels
• What is procurement in a business context?

  Finding the right suppliers for goods
• What are the key responsibilities of procurement?

  Ordering right quantities and ensuring quality
• What does logistics refer to in business?

  Delivery of products throughout the supply chain
• Why is logistics important for customer satisfaction?

  Ensures timely delivery of products to customers
• What is quality in a business context?

  It varies by type of business and product
• How is quality assessed in a restaurant?

  Food quality, service, and atmosphere
• What factors determine quality in a hotel?

  Room quality, service, and amenities
• What is quality control?

  Checking quality at the end of production
• What is a disadvantage of quality control?

  Faults may be identified too late
• What is quality assurance?

  Checking quality throughout the production process
• How does quality assurance differ from quality control?

  Quality assurance checks throughout production
• What is a quality culture in an organization?

  Everyone cares about quality standards
• What does Kaizen mean?

  Continuous improvement in processes