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EDUQAS A-Level Business Studies > 1.9: Operations Management > Flashcards

1.9: Operations Management Flashcards

1.9.1: Production, Productivity and Added Value 1.9.2: Methods of Production 1.9.3: Capacity Utilisation 1.9.4: Technology 1.9.5: Lean Production 1.9.6: Quality 1.9.7: Purchasing and Stock Control 1.9.8: Research and Development

1
Q

What is Productivity

A

A measure of the level of output against a fixed input (Labour and Capital Productivity)

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2
Q

How do you measure productivity

A

Labour = Output / No of employees
Capital = Output / Capital Employed

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3
Q

State 3 advantages of productivity

A

Increased Economies of Scale, Lower Unit Costs and Performance bonuses to workers

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4
Q

State 4 methods of improving productivity

A

Training, Workplace Reorganisation, Technological Investment and Lean Production

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5
Q

What is Added Value

A

Increasing the worth of a resource by modifying it in some way.
Value of Output - Value of Input (cost)

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6
Q

State 3 ways you can add value to a good or service

A

Reducing the price paid for their inputs (raw materials), Raise selling price (depending on elasticity) & Improve Lead Times (Customers will pay premium for faster delivery)

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7
Q

Evaluate Added Value

A

Helps a firm differentiate which can protect their market share but more training maybe required and it doesn’t always guarantee profit

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8
Q

What is Job Production

A

A labour intensive one off delivery of a product specified to customer requirements such as Kate M’s wedding dress

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9
Q

State 3 benefits and 3 drawbacks of Job Production

A

Flexible, High Motivation and High Quality
No EOS, Low Volume and Time Consuming

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10
Q

What is Batch Production

A

Small Quantities of Identical Products for example: Bakeries

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11
Q

State 3 benefits and 3 drawbacks of Batch Production

A

Low Cost, Fast Times and Some EOS
Repetitive, Increased Storage Requirements and Machinery breaks

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12
Q

What is Flow (Mass) Production

A

A continuous process of large volumes of identical products eg: Car Assembly Plant

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13
Q

State 3 benefits and 3 drawbacks of Flow (Mass) Production

A

Fast, Consistent and Large EOS
Expensive, Repetitive and Job Losses (bad rep)

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14
Q

State 4 factors that influence a businesses choice of production method

A

Size of Firm, Technological Impact, Labour Impact (what skills are needed to produce the product) and The Level of Demand and Costs (Equipment & Production Costs)

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15
Q

What is Capacity Utilisation

A

The max no of units a frim can produce with existing resources so it is the extent to which the company’s maximum possible output is being reached

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16
Q

What is the formula for Capacity Utilisation

A

Actual Output x100 / Maximum Possible Output (As a %)

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17
Q

State 3 problems with Spare Capacity

A

Idle Staff/Low Motivation, Increased Costs and Under-Utilised Machinery

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18
Q

State 3 ways in which you can solve spare capacity

A

Subcontract (No P costs but less direct control over quality), Rationalisation (Shrinking) and Increase Asset Use (New Markets and Products and Sales Promos)

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19
Q

State 3 advantages and 3 disadvantages of Full Capacity

A

Lowers Unit Costs, Economies of Scale and No wastage
Pressure on Machinery, Demotivated Staff and Decline in Quality

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20
Q

State 3 ways in which a firm can manage capacity shortage

A

Overtime/Longer Hours for staff, Hiring and Building or Extending factories/plants

21
Q

How does CAD help the manufacturing process

A

It eliminates human error, lower cost designs speed up development however training is required, software needs updating and it is expensive

22
Q

How does CAM help the manufacturing and retailing process

A

Machines are controlled by computers, they can minimise waste and cut costs, they are fast and accurate but it is expensive, inflexible and time due to coding

23
Q

What is CNC and CIM

A

CNC is Numerically controlled machines which is given instructions by the operator
CIM is Integrated manufacturing where a computer is used to guide the guide and control production

24
Q

What is collaborative robotics and how do they help with Manufacturing and Logistics

A

They have the ability to avoid unwanted collisions (Amazon have Kiva), The bots can function outside of safety cages (work with humans) and provide a second dexterous pair of hands

25
Q

State 3 ways how technology is used in Manufacturing and Retailing

A

RFID, Outsourcing (Remote workers) and Internet (Online shopping)

26
Q

Does Technology actually help

A

It depends on capability of existing systems and the cost of implementation also the staff

27
Q

What is Lean Production

A

The elimination of waste from the production process (waste is anything that doesn’t add value)

28
Q

State 4 different wastage elements

A

Inventory (Excess), Waiting (Time), Defects and Over Production

29
Q

How does a business implement lean production

A

They have to change philosophy which is not quick, simple or cheap then it requires a cultural change which is re-educating and retraining

30
Q

What is Just-In-Time (JIT)

A

Components are delivery when they are required minimising stock but maintaining a close relationship with the supplier. JIT cannot be implemented in isolation

31
Q

State 3 benefits and 3 drawbacks of Just-In-Time (JIT)

A

Elimination of Waste, Lower Costs and Greater Flexibility to demand changes
Loss of EOS, Reliant on Suppliers and Expensive

32
Q

What is Kanban and what are the benefits of Kanban

A

A system of order cards as a part of a JIT system, the benefit is it is supposed to help limit the build-up of excess inventory

33
Q

What is Kaizen and what are it benefits and drawbacks

A

Combining teams of employees to continuously improve the business
Improved comms, Better Quality and More Motivated employees
Requires commitment, Training Cost and Time

34
Q

What is Time-Based Management

A

Speed adds value giving a first mover advantage using JIT, Tech and Critical Path Analysis which requires Effective Communication and Training

35
Q

What is Cell Production

A

Involves the division of the production line focusing on multi-skilling providing opportunities for job enrichment and enlargement to make a continuous flow

36
Q

Why does Quality matter

A

It provides assurance, it sets expectations and its key benefits are reduced waste, customer satisfaction and increased sales

37
Q

What is the difference between Quality Control and Quality Assurance

A

Quality Control seeks to inspect out faults whereas assurance aims to have no faults get it right every time (but staff require more training = investment cost)

38
Q

What is the main problem with Quality Standards

A

They drive down quality to meet the basic standard, customers look for quality standards marks to decide

39
Q

What is Total Quality Management (TQM)

A

Creation of a culture of quality though a quality chain in the workforce, this methods has 4 pillars: Customer Focus, Continuous Improvement, Zero Defects and Shared Responsibility

40
Q

What is Benchmarking

A

Measuring your performance versus a competitors performance to identify areas of weakness but it has to be like for like and such data is hard to come by

41
Q

What is the difference between a Quality Chain and a Quality Circle

A

Chains aim to integrate both internal and external customers whereas Circles are employees meting to discuss improvement methods

42
Q

What is Purchasing and Why is it so important

A

Acquiring external stock for a fee it has to be carefully managed to be a success because a firm will seek to build a relationship with suppliers

43
Q

What is the difference between Centralised and Decentralised Purchasing

A

Centralised is one department purchases for the whole business (Quality & EOS’s achieved)
Decentralised is individual department purchasing (Reduced Cost & More responsibility may be motivating)

44
Q

What factors go into Selecting a supplier and then choosing a supplier

A

Selection: Flexible, Reliable and Competitive
Choice: Price, Payment Terms, Quality, Capacity, Reliability and Flexibility

45
Q

What are the 3 main aims of Stock Control

A

Minimise Levels, Reduce Customer Lead Times and Lower Waste Levels

46
Q

What are the 4 stages of the Product Design Process

A

1: Identify the problem
2: Design Solution(s)
3: Develop Prototypes
4: Manufacture (Launch and Review)

47
Q

What is Product Innovation

A

Intro of a good or service that is new or significantly improved advantages of this include: Added Value, Increased Market Share and Marketing benefits

48
Q

What is Process Innovation

A

Implementation of a new or significantly improved production or delivery method advantages of this include: Reduce Costs, Flexibility and Improved Quality but Job loses and retraining are necessary

EDUQAS A-Level Business Studies (10 decks)

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