Business operations

• Flow production

  Continuous movement of items through the production process
• The role of procurement

  The whole process of managing the ordering and receipt of the goods or services in the business
• Job production

  A method of production that meets specific customer requirements
• Lean production

  Makes a business more efficient by reducing waste while ensuring quality
• Kaizen

  Small constant improvements
• Logistics

  Getting goods or services from one part of the supply chain to another.
• Just in time(JIT)

  Buying small quantities at a time when needed- lose out on purchasing economies of scale.

  • reduces costs of having to keep stock
  • requires frequent deliveries
• Just in case(JIC)

  Extra stock (buffer stock) just in case there is a supply shortage or customer demand increases.

  • Can be costly as can be left with big stockpiles of items.
• Factors affecting choice of suppliers

  • price - cheap = low quality
  • quality- low quality= less customers
  • reliablility
• Costs and benefits of maintaining quality

  • Additional sales
  • higher price
  • staff training
  • inspection costs
• Benefits of managing a supply chain effectively

  • good relationship with suppliers
  • finding best price and value
  • reducing waste and costs
• Procurement

  Establishing the terms of payment and negotiating contract with suppliers
• TQM (total quality management)

  Focusing on preventing errors occurring ensuring quality is high
• Production process

  Business producing products looking at reducing waste and increasing efficiency