operations

• Good


  a tangible item that exists in a physical sense
• Service 


  an experience or non-physical item e.g. haircut
• Job production 


  one-off production of a one-off item for each individual customer
• Batch production 


  producing a limited number of identical products
• Flow production 


  continuous production of identical products, which gives scope for high levels of automation
• Productivity 


  a measure of efficiency, usually output per person per time period
• Automation


  using machines that can operate without people
• Flexibility


  the ability to switch quickly and easily from one task to another
• CAD


  computer aided design
• CAM


  computer aided manufacture
• Job production 


  benefits

  • unique products
  • high quality
  • higher prices

  drawbacks

  • need highly skilled workers
  • lengthy process
  • high cost per unit
• Batch production

  benefits

  • variety and choice
  • materials purchased in bulk lowering production cost

  drawbacks

  • Work is repetitive
  • Equipment must be cleaned after each batch
• Flow production 


  benefits

  • bulk buying leads to lower unit costs
  • production 24/7
  • higher quality

  drawbacks

  • high capital investment
  • less flexibility to adapt products
  • very repetitive work
• Impacts of technology

  • lower costs in long term due to lower labour costs; improved quality so less wastage
  • increased productivity due to no breaks or holidays
  • improved quality/consistency
  • lower costs can lead to competitive prices
• Production method


  a business may use one of three different production methods. The choice of method will depend on the nature of the product and the level of production.
• Operations


  the business functions that organises, produces and delivers the goods and services produced or provided by a business. It is the key function that transforms resources into finished goods and services.