2.3 Making operational decisions

Continuous production of identical products, therefore giving scope for high levels of automation

• Job production

• Productivity

• Flow production

• Batch production

Producing a limited number of identical products

• Flow production

• Batch production

• Productivity

• Job production

A measure of efficiency, measured as output per person in a particular time period

• Productivity

• Automation

• Product quality

• Competitive advantage

One-off production of a one-off item for a single customer

• Quality

• Competitive advantage

• Batch production

• Job production

An increase in morale and motivation can lead to what?

• Reduction of costs

• Improvements in quality

• Increased productivity

• Decreased productivity

A business makes 28,000 items a week and employs 35 staff.

Calculate the productivity per worker.

• 1500 units/week

• 35 units/week

• 800 units/week

• 900 units/week

Management salaries are an example of what?

• Quality control

• Fixed Costs

• Variable costs

• Material costs

The ability to switch quickly and easily from one task to another

• Flexibility

• Quality

• Flow production

• Batch production

Running the business with so little stock that new supplies have to arrive just before existing supplies run out

• Bar gate stock graph

• Just in case

• Just in time

• Stock levels

The minimum stock level held at all times to avoid running out completely

• Re-order quantity

• Lead time

• Buffer stock

• Maximum stock level