(Business)business operations-4

• Production Planning


  • Deciding best production methods
  • Managing production
• Job Production


  • Manufacture of individual goods from different materials
  • Each product is unique
  • High quality
  • Expensive
  • Time-consuming
  • Replacements are hard to find
• Batch Production


  • Small number of identical products made at one time
  • Each batch goes through one stage before moving onto the next
  • More products can be produced
  • Unit costs are lower
  • Production is more efficient
  • Quantity isn't as high as Job production
  • Machines have to be cleaned and reset before new batch
• Flow/Mass Production


  • Goods produced continuously on a production line
  • Partly finished goods move along assembly line with parts being added
  • Quicker
  • Produces identical goods
  • Reduces waste
  • Machinery is expensive
  • Lack of flexibility
  • Bored workers
• Quality


  Meeting standards for goods/services to satisfy consumers' needs and wants
• Ensuring Quality


  1. Purchasing right raw materials

  2. Employing the right people

  3. Training employees

  4. Using quality assurance & quality control
• Quality Control


  Inspecting a sample of goods at the end of the production process to identify goods that don't meet standards
• Quality Assurance


  Assuring consumers that given standards have been met through the production process
• Quality Assurance


  1. Checking quality at each stage of production process

  2. Quality is the responsibility of everyone throughout the process

  3. Total quality management - each employee treats the next person on the production line like a customer
• Computerised Stock Control


  • Specific quantity ordered automatically reordered when stock levels reached
  • Barcodes and scanners used to record stock movements
• 1. commerce Purchasing


  • Can see images of products
  • Prices from many sellers can be compared
  • Wider choice
  • Order 24/7
  • Goods not inspected
  • Images may be misleading
  • Delays in sending/receiving
• Choosing Suitable Suppliers


  • Quality
  • Speed of delivery
  • Reputation
  • Behavior of supplier
• Just in Case


  Hold stock in case of supply issues or unexpected increase in demand
• Just in Time


  • Keep stock of materials/finished goods to a minimum
  • Goods only produced when orders come in
  • Saves storage costs
  • Avoids assets being tied up in stocks
• How ICT can be used in Business


  • Communication
  • Stock control
  • Online banking
  • Research
  • Selling
  • CAD design
  • CAM production
• Concerns of employees about new technology


  • May lose jobs
  • Reduced morale
  • Need for training
  • Health risks
• Impact of technology on customers
• Total Quality Management

  Achieving quality through involvement and development of systems and people