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BUSINESS CHAP 18 - Coggle Diagram
BUSINESS CHAP 18
Type of waste
overproduction:Producing goods before being ordered by costumer,high storage cost and chance of product being damaged .
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Transportation:moving goods unnecessarily,not adding value to goods and it might be damaged
unnecessary inventory:when too much inventory taking up space ,may get in way of production and cost money
Motion:When employee is moving unnecessarily it may risk their health and waste time same for machine
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Operations department
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purchasing manager: providing materials, components and equipment
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in a retailing business, factory manager will be replaced by managers for the shops
in a service business, each restaurants will have a manager
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Methods of production
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Batch production
Definition
where a quantity of 1 product is made, then a quantity of another item will be produced
Advantages
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flexible way of working, production can easily be changed from 1
product to another
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Just in time(JIT):reducing or eliminating the need for inventory.Raw material delivered on time for production
Ad of JIT: Reduce the cost of holding inventory,warehouse space not neede reducing cost,product sold quickly so money will come back to business quickly helping cash flow
cell production:where production line is divided into separate square,making each part of the product