1. Business Management - Intermediate 2Business Decision Areas © Copyright free to Business Education Network members 2007/2008B109/078 – BDA 1

2. Business Management - Intermediate 2Business Decision Areas © Copyright free to Business Education Network members 2007/2008B109/078 – BDA 2

3. Business Management - Intermediate 2Business Decision Areas © Copyright free to Business Education Network members 2007/2008B109/078 – BDA 3

4. Business Management - Intermediate 2Business Decision Areas © Copyright free to Business Education Network members 2007/2008B109/078 – BDA 4 BUSINESS DECISION AREAS Operations Types of Operations Quality

5. Business Management - Intermediate 2Business Decision Areas - Operations © Copyright free to Business Education Network members 2007/2008 5 Operations 3.Types of Operations B109/078 – BDA - Operations 4.Quality

6. Business Management - Intermediate 2Business Decision Areas - Operations © Copyright free to Business Education Network members 2007/2008 6 B109/078 – BDA – Operations – Types of Operations JOB – one-off, where one person makes all of the product to a customer’s satisfaction. BATCH – production of several ‘similar’ but not identical products, in batches. FLOW – production line where a product passes through various stages, components being added at each one. 3. Types of Operations

7. Business Management - Intermediate 2Business Decision Areas - Operations © Copyright free to Business Education Network members 2007/2008 7 An example of a product/service using this method of production would be: Unique product, made to specific requirements. JOB A DESIGNER KITCHEN Needs specialist skills to make ‘Labour intensive’. Very time consuming method and therefore more expensive. B109/078 – BDA – Operations – Types of Operations 3. Types of Operations - continued

8. Business Management - Intermediate 2Business Decision Areas - Operations © Copyright free to Business Education Network members 2007/2008 8 All products are similar but not identical. BATCH An example of a product using this method of production would be: TINS of SOUP Different processes may be used to produce each similar product. Less skill involved in producing. Uses a combination of ‘human’ and ‘capital’ resources. 3. Types of Operations - continued B109/078 – BDA – Operations – Types of Operations

9. Business Management - Intermediate 2Business Decision Areas - Operations © Copyright free to Business Education Network members 2007/2008 9 All products are identical. FLOW An example of a product using this method of production would be: CARS Guarantees standardisation. Involves working on a production line, where products can be made by machine. Highly ‘Capital Intensive’ method. B109/078 – BDA – Operations – Types of Operations 3. Types of Operations - continued

10. Business Management - Intermediate 2Business Decision Areas - Operations © Copyright free to Business Education Network members 2007/2008 10 Production method ADVANTAGESDISADVANTAGES JOBMade to customers exact requirements. Slow method of production. Workers are more motivated.Very expensive for the consumer. BATCHEasier to change production quickly. Lower motivated staff. Low skilled workers can keep wages bill low. Specialist machinery may be needed for different batches. FLOWHugh quantities can be manufactured. Capital intensive and therefore very expensive to set up. Technically intricate products can be made. Standard products may not suit all customers. Types of production – Advantages and Disadvantages 3. Types of Operations - continued B109/078 – BDA – Operations – Types of Operations

11. Business Management - Intermediate 2Business Decision Areas - Operations © Copyright free to Business Education Network members 2007/2008 11 Businesses must have systems in place to make sure that their products and services are of the highest quality. Producing high quality products is essential for a business within today’s competitive market. This involves: total quality management quality assurance quality control quality circles benchmarking 4. Quality B109/078 – BDA – Operations – Quality

12. Business Management - Intermediate 2Business Decision Areas - Operations © Copyright free to Business Education Network members 2007/2008 12 Total Quality Management This systems employs the principles of; quality assurance; quality control – at every stage of production. Making sure that products are made to perfection on every occasion providing the customer with a quality that they would expect. Every stage of production is viewed as the final consumer and the product must be perfect before it moves to the next stage. B109/078 – BDA – Operations – Quality 4. Quality - continued

13. Business Management - Intermediate 2Business Decision Areas - Operations © Copyright free to Business Education Network members 2007/2008 13 Quality Assurance products are checked at every stage of the manufacturing process. based on prevention rather than cure. products must be right first time, every time. 4. Quality - continued B109/078 – BDA – Operations – Quality

14. Business Management - Intermediate 2Business Decision Areas - Operations © Copyright free to Business Education Network members 2007/2008 14 Quality Control is being outdated and replaced by quality assurance. products not meeting a specific standard will be discarded. products are checked at the end of the production process. 4. Quality - continued B109/078 – BDA – Operations – Quality

15. Business Management - Intermediate 2Business Decision Areas - Operations © Copyright free to Business Education Network members 2007/2008 15 Quality Circles Groups of workers and management join together to discuss quality issues. This raises awareness of problems at shop floor level. This involves everyone in the TQM. 4. Quality - continued B109/078 – BDA – Operations – Quality

16. Business Management - Intermediate 2Business Decision Areas - Operations © Copyright free to Business Education Network members 2007/2008 16 Benchmarking Uses the best industry standard from which to measure your products against. Makes sure that the business will remain competitive and constantly striving to be the best. 4. Quality - continued B109/078 – BDA – Operations – Quality