3.4.3 mix of resources & tech to improve efficiency

Question 1

how to choose the optimal mix of resources

Answer 1

operations management involves combining the 4 factors of production or resource inputs:
land
labour
capital
enterprise

Question 2

mix of resources can be:

Answer 2

capital intensive
labour intensive

Question 3

capital intensive

Answer 3

uses relatively high proportion of capital such as machinery in production of a good or service. Tends to occur in secondary sector of economy i.e manufacturing.

Question 4

labour intensive

Answer 4

uses relatively high proportion of labour. i.e workers in production of good or service.
Tends to occur in tertiary sector of economy. i.e services.

Question 5

advantages of capital intensive

Answer 5

increased productivity
improved quality and speed
reduced labour costs
greater opportunities for economies of scale ( benefits to a business of producing on a large scale that lead to fall in unit costs)

Question 6

disadvantages of capital intensive

Answer 6

high investment outlay
lack of human initiative (higher rate of defects on goods)
greater resistance to change by workforce. e.g retraining staff to use new equipment.
e.g strikes.

Question 7

advantages to labour intensive

Answer 7

often cheaper, especially in low wage locations such as Malaysia.
workforce easily adapt to change, especially if multi-skilled.
continuous improvement through workforce can benefit firm-e.g new ideas (machinery can’t think)
government funding often available to protect jobs in economy.

Question 8

disadvantages of labour intensive

Answer 8

industrial relations can be a problem-i.e striking
lack of skilled workers in some industries
HRM (human resource management) costs can be very high, e.g recruitment, selection and training.

Question 9

Technology to improve operational efficiency

Answer 9

-robotics
-automation
-communication
-design technology

Question 10

robotics

Answer 10

used for;
PRODUCTION PROCESSES like sterilising bottles,
LOGISTICS like picking and packaging, QUALITY ASSURANCE like weighing and testing.

Question 11

advantages of robotics

Answer 11

accuracy.
speed.
consistency.
resilience.
hazardous environments.

Question 12

disadvantages of robotics

Answer 12

high initial costs.
high maintenance costs.
loss of human touch.
lack of initiative.

Question 13

Automation

Answer 13

use of machines to control a process like stock control, production line, warehousing and distribution

Question 14

stock control (automation)

Answer 14

more accurate predictions of stock usage through statistical analysis.
automatic control of stock levels and re ordering.
assess data on stock levels and geographical location.
retailers use EPOS (electronic point of sale) technology.
-barcodes
-scanners
-databases

Question 15

Design technology

Answer 15

use of computers in design stage of developing a product;
-CAD (computer aided design) used in many professions such as architecture.
-As well as new product development:
ie car manufacturing, tea pots.
-3D simulations/printers allow for greater degrees of manipulation prior to investment in prototypes.
-designs can be easily altered to provide range of options.
-designs can be tested in changing conditions, eg wind tunnels.