3.4 Decision making to improve operational performance

Question 1

The value of setting operational objectives

Answer 1

Operational objectives include:

costs
quality
speed of response and flexibility
dependability
environmental objectives
added value.

Question 2

External and internal influences on operational objectives and decisions

Question 3

Interpretation of operations data

Question 4

Calculation of operations data

Answer 4

Students should be able to calculate:

labour productivity
unit costs (average costs)
capacity
capacity utilisation.

Question 5

The importance of capacity

Question 6

The importance of efficiency and labour productivity

Question 7

How to increase efficiency and labour productivity

Question 8

The benefits and difficulties of lean production

Answer 8

Lean production should include ‘Just in Time’ operations.

Question 9

Difficulties increasing efficiency and labour productivity

Question 10

How to choose the optimal mix of resources

Answer 10

The mix of resources should include an understanding of labour and capital intensive processes.

Question 11

How to utilise capacity efficiently

Question 12

How to use technology to improve operational efficiency

Question 13

The importance of quality

Question 14

Methods of improving quality

Answer 14

Methods of improving quality should include quality assurance.

Question 15

The benefits and difficulties of improving quality

Question 16

The consequences of poor quality

Question 17

The consequences of poor quality

Question 18

Ways and value of improving flexibility, speed of response and dependability

Answer 18

An understanding of flexibility should include mass customisation.

Question 19

How to manage supply to match demand and the value of doing so

Answer 19

Ways of matching supply to demand include:
outsourcing
use of temporary and part time employees
producing to order.

Question 20

Influences on the amount of inventory held

Answer 20

Inventory control should include:
interpreting inventory control charts
lead time
re-order levels
buffer level of inventory
re-order quantities

Question 21

Influences on the choice of suppliers

Question 22

How to manage the supply chain effectively and efficiently and the value of this

Question 23

The value of outsourcing